WellPoint Systems Inc., Calgary, (TSX: WPS) plans to privately place $2 million in secured convertible debentures with Toronto-based Quorum Funding Corp. The proceeds will fund development of its oil, gas and mining markets software solutions, as well as general working capital purposes.

As part of the deal, Quorum subsidiary Quorum MENA Ltd. will purchase $2 million in WellPoint back office oil and gas solutions to resell to independent oil companies. Quorum MENA will have exclusive rights to sell WellPoint's products within the Middle East, North Africa and India. The offering is expected to close this month.

WellPoint chief executive officer Frank Stanford says, "Quorum is a sophisticated investor in the oil and gas technology space and has generated an IRR of 20% over the last 20 years. This investment provides a positive validation of our evolving business plan, demonstrates their belief in our future potential, and provides us with the financial flexibility to operate in these turbulent financial markets."