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QIS Update #9 2013 - May 3rd 2013



Included in this update:

  • Blackbird Energy announces purchase of additional O&G assets in Flaxcombe, SK
  • Cobra Venture files Q1 financial statements
  • Virtutone Networks reports April 2013 sales from wholesale division

 


 

We’d like to thank all of our presenters, sponsors and attendees for making the Calgary Small-Cap Conference a success on April 16. There was a solid turnout despite the relative weakness in the markets this month (TSX Venture down approximately 12% during the month of April). The company presentations from this event are available online at www.smallcapconference.ca/presentations.php. To keep up with our next planned conference dates, feel free to check us out online at www.smallcapconference.ca and sign up for our Conference Alerts.

 

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 its wholly-owned subsidiary, Ruger Energy Inc., has entered into an agreement to purchase certain oil and gas assets from Blackspur Oil Corp. for total cash consideration of $100,000.

 

The assets (East Flaxcombe) are located near Ruger's current oil production in Flaxcombe, Saskatchewan and will allow for optimization and operating cost savings. Current production at the East Flaxcombe Project is 10 boepd (70% oil) and the deal metrics are $10,000/producing day barrel.

 

The East Flaxcombe is accretive to Blackbird's Flaxcombe Project. East Flaxcombe is comprised of a total of 6,080 acres in West Central Saskatchewan. Blackbird will now have a 100% working interest in the Sparky oil pool with two additional producing wells.

 

Garth Braun, CEO of Blackbird stated, This accretive acquisition expands Blackbird's land position in this core area of focus and we believe that the Flaxcombe Project will deliver increased shareholder value. Blackbird's team continues to be focused on diversifying its interest with the addition of these lower risk multi pay oil projects in West Central Saskatchewan.


QIS Capital:

 

Blackbird purchased these strategic lands to expand its prospective land position and also purchased existing production for about a quarter of going acquisition valuations. The company has been very busy on the acquisition front and has shown significant success in well workovers and recompletions following these acquisitions. At a time when the junior oil and gas industry has come to a near standstill, Blackbird is increasing its production, growing its land position and establishing new plays of significant potential for future drilling.


 

Cobra Venture Corporation (CBV:TSX-V)
Website: www.cobraventure.com
Current Price: $0.22 (coverage commenced May 22/07 - $0.205)

 

Cobra Venture Corporation has released its financial and operating results for the first quarter ended February 28, 2013.

The company did not have any significant events or transactions that occurred during the three month period ended February 28, 2013.

During the year ended November 30, 2012, the company acquired a 100% interest in certain lands and premises located in the Municipal District of Rocky View No. 44, in the Province of Alberta, consisting of approximately 15.78 acres, excepting thereout all mines and minerals, for $3,975,000, and closing costs of $46,876, for a total of $4,021,876.

 

Oil and gas revenue of continuing operations for the period ended February 28, 2013 was $12,438 compared to $65,338 in the comparative period ended February 29, 2012. Oil and gas revenue of discontinued operation for the period ended February 28, 2013 was $Nil compared to $90,335 in the comparative period ended February 29, 2012. The decrease of revenue for the discontinued operation is a result of the company no longer owning royalty interests in the Viewfield and Pembina areas.

 

As at February 28, 2013, Cobra had positive working capital of $1,441,548 or $0.09 per share including cash and cash equivalents of $1,388,095.

 

LATEST FINANCIAL RESULTS
  First Quarter Ended Feb 28
  2013 2012
Revenues $12,438 $65,338
Direct Costs 14,522 33,790
Income Tax Recovery 55,902 127,521
Income from Discontinued Ops - 3,873,642
Net Income (143,445) 3,787,567
per share ($0.009) $0.23

 

 

BALANCE SHEET
(As at February 28, 2013)
Current Assets $ 1,577,133
Total Assets 6,088,455
Current Liabilities 135,585
Long-Term Debt nil
Shareholders' Equity 5,879,597

 

 

Copies of the company’s complete financial statements may be obtained electronically from the SEDAR system at www.sedar.com.


 

Virtutone Networks Inc. (VFX:TSX-V)
Website: www.virtutone.com 
Current Price: $0.155 (coverage commenced Sep. 9/11 - $0.10)

 

Virtutone Networks Inc. has announced that revenue from its wholesale division exceeded $1.8 million for the month of April 2013.

 

We are pleased to report continued growth in our wholesale traffic said Jason Allen, Chief Executive Officer of Virtutone. We have spent the past several months partnering with a significant number of wholesale carriers across the globe. These carriers not only send us a portion of their traffic, but also provide us with quality routes to resell. Developing these relationships has allowed us to become a well-respected player in this industry.


QIS Capital:

 

Investors need to keep in mind that the $1.8 million in revenues announced for April was from the Wholesale Division alone. On an annualized rate, this would translate into annual revenues from Wholesale alone of $21.6 million. Total corporate revenues historically have been in the $3 million range. Virtutone also recently announced a new retail contract of 700 lines which will be rolled out in May-June of this year. These are high margin lines that should have a positive impact on the bottom line. Investors should keep a close eye on this company as it is on pace to increase revenues by more than 7 fold this year and continues to work on several new contracts which will have a meaningful impact on future financial results.

 


 

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 638,500 shares and 450,000 options of Blackbird Energy Inc., 400,000 shares of Cobra Venture Corporation and 931,000 shares of Virtutone Networks Inc. QIS Capital may have financial relationships with the companies discussed and may trade in the stocks mentioned. No stock exchange has approved or disapproved of the information contained herein. Copyright © 2003 - 2013 QIS Capital Corporation.

Canadian Small Caps

 
Canadian Small Caps

CLICK HERE to view the presentations from the Spring 2016 Small-Cap Conferences.

We are pleased to publish the PowerPoint presentations from The Small-Cap Conferences that were held in Calgary on March 30, 2016 and in Vancouver on May 3, 2016.

We encourage investors to review the presentations and contact the companies with any further questions.

www.smallcapconference.ca/presentations.php
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