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QIS Update #5 2014 - February 13th 2014



Included in this update:

  • Financing Opportunity – Quinsam Capital
  • Blackbird Energy plans to drill first horizontal well at Mantario project
  • Pennant Energy plans to drill first horizontal well at Mantario project
  • Virtutone Networks announces executive changes

 

As mentioned in our last update, Quinsam Capital Corporation (QCA:CSE) is conducting a best efforts non-brokered private placement financing to raise up to $5,000,000. The proceeds of the Offering will be used for investment activities and working capital purposes. Quinsam is a “mini-fund” investing in small-cap fundamental companies. Doren Quinton, President of QIS Capital holds a significant position in Quinsam and meets regularly with the Board to discuss investment opportunities. The fund is managed by Roger Dent, a successful and well-known fund manager in Canada. In the first six weeks of investment, Quinsam has posted a return of almost 20%. The details are included below – please contact us if you are interested in participating.

Quinsam Non-Brokered Private Placement Summary:

  • up to 50 million shares @ $0.10 per share
  • available to accredited investors
  • 4-month hold period will apply
  • 8% arm’s length cash finders’ fee
  • expected to close by Feb. 28, 2014

Anyone interested or for those wanting more information on the company please contact us as soon as possible. This offering is only available to accredited investors.
Email: info@smallcaps.ca
Phone: (250) 377-1182

 

Please feel free to email us anytime at info@smallcaps.ca or call us at (250) 377-1182. We look forward to your comments, questions, and feedback.

 


 

Blackbird Energy Inc. (BBI:TSX-V)
Website: www.blackbirdenergyinc.com
Current Price: $0.06 (coverage commenced Aug 19/11 - $0.18)

 

Blackbird Energy Inc. has announced that it plans to spud its first horizontal well at its Mantario Oil Project in the second quarter of 2014, subject to weather and rig availability. The well will be spudded from a surface location at 16-1-26-25W3 with a horizontal lateral length of 800 meters. The trajectory of the horizontal well has been established using Blackbird's proprietary high resolution 3D seismic and the company's existing well control. Blackbird holds a 70% operated working interest in the project.

 

This planned horizontal well is the follow-up to the successful A15-6-26-24W3 (A15-6) discovery well that encountered a 20 meter pay section and is still producing in excess of 20 bbls/d with minimal water.

 

Blackbird is close to completing a detailed exploitation study of the Mantario Oil Project which would encompass approximately 15 Hz locations with 80 acre spacing. Downspacing to 40 acres would allow for an additional 15 Hz locations. In addition to downspacing, the company is evaluating secondary recovery methods to improve the overall recovery factors for the pool.

 

The cost of the horizontal well at the Mantario Oil Project is expected to be less than $1,000,000 including drilling, completion, equipping and installing surface facilities, and would qualify for the exceptional 2.5% royalty incentive currently received in Saskatchewan for drilling a horizontal well.

 

QIS Capital: Blackbird has discovered a significant pool at Mantario through its initial vertical well and management hopes that it can successfully tap into this reserve with improved production numbers through horizontal drilling. This has yet to be proven in this area but if successful, the company has up to 30 potential wells it can drill. The first well is expected to be drilled during Q2.

 


 

Pennant Energy Inc. (PEN:TSX-V)
Website: www.pennantenergy.com
Current Price: $0.03 (coverage commenced Dec 7/12 - $0.075)

 

Pennant Energy Inc. has announced that its partner, Blackbird Energy Inc., plans to spud the first horizontal well on the Mantario Oil Project in the second quarter of 2014, subject to weather and rig availability. The well will be spudded from a surface location at 16-1-26-25W3 with a horizontal lateral length of 800 meters. The trajectory of the horizontal well has been established using proprietary high resolution 3D seismic and existing well control. Pennant holds a 30% operated working interest in the project.


This planned horizontal well is the follow-up to the successful A15-6-26-24W3 discovery well that encountered a 20 meter pay section and is still producing in excess of 20 bbls/d with minimal water.


Pennant and Blackbird are close to completing a detailed exploitation study for the Mantario Oil Project which would encompass approximately 15 Hz locations with 80 acre spacing. Downspacing to 40 acres would allow for an additional 15 Hz locations. In addition to downspacing, the companies are evaluating secondary recovery methods to improve the overall recovery factors for the pool.


The costs of the horizontal well at the Mantario Oil Project are expected to be less than $1,000,000 including drilling, completion, equipping and installation of surface facilities, and would qualify for the exceptional 2.5% royalty incentive currently received in Saskatchewan for drilling a horizontal well. Pennant estimates that its portion the costs will be approximately $250,000 and is considering alternatives for funding such costs.


QIS Capital: As mentioned above, Blackbird and Pennant are planning to drill their first horizontal well at Mantario during the second quarter of 2014. Blackbird discovered over 20 meters of oil bearing sands in the initial vertical well at Mantario; however, initial production has been a modest 20-25 bopd. Management is hoping that a horizontal well will significant improve production and payback in order to expedite the development of this property.

 


 

Virtutone Networks Inc. (VFX:TSX-V)
Website: www.virtutone.com
Current Price: $0.50 (coverage commenced Sep. 9/11 - $0.10)

 

Virtutone Networks Inc. has announced that Mr. Brent Johnston, who was recently appointed as a Chief Financial Officer of the company, has resigned for personal reasons. Mr. Colin Campbell, formerly the Chief Financial Officer of the company, remains with Virtutone and will assist management of the company while they search for a new Chief Financial Officer.


In addition, the company and Mr. Louis Acevedo have agreed to terminate Mr. Acevedo's consulting arrangement with the company and Mr. Acevedo has resigned from his position as Vice-President, Carrier Operations.

 

QIS Capital: We have been told that these resignations are strictly coincidental and are a matter of personal reasons. We have not been provided with any further information. Management expects to continue to show revenue growth in the coming months.



 

Disclaimer: This article is for informational purposes only. The information contained within this article should not be construed as offering investment advice. Those seeking direct investment advice should consult a qualified, registered, investment professional. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The company profiled assumes no liability for the information presented. This is not a direct or implied solicitation to buy or sell securities. Readers are advised to conduct their own due diligence prior to considering buying or selling any stock. The author(s) owns directly or indirectly 466,500 shares and 650,000 options of Blackbird Energy Inc., 207,000 shares and 200,000 options of Pennant Energy Inc., 1,010,000 shares of Quinsam Capital Corp. and 607,000 shares and 212,500 warrants of Virtutone Networks Inc. QIS Capital may have a financial relationship with these companies and may trade in the stocks mentioned. No stock exchange has approved or disapproved of the information contained herein. Copyright © 2003 - 2014 QIS Capital Corporation.

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