QS Energy Inc. (OTC: QSEP) said March 8 it has signed a joint venture (JV) agreement with JBL Royalty Co. LLC to assist in identifying and assessing undervalued oil and gas leases, properties and other assets.

JBL Royalty is a subsidiary of JBL Energy Partners, an E&P headquartered in Tomball, Texas, with operations in the East Texas Basin and the Gulf Coast.

As QS Energy's JV partner, JBL will source and evaluate proved developed producing oil and gas properties, with upside cash-producing potential through the drillbit, according to the release.

The JV's goal and objective over a rolling 12-month period is to identify acquisition opportunities that yield nearly $4 million in net operating cash flow on a per annum basis, Greggory M. Bigger, QS Energy CEO and chairman, said in a statement.

QS Energy, based in Santa Barbara, Calif., is a developer of integrated technology solutions for the energy industry. The JV agreement is with its subsidiary, QS Energy Pool, which was established for pursuing acquisition opportunities.