<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
Queen Sand Resources, Inc.
(Name of Issuer)
Common Stock
(Title of Class of Securities)
747927 10 1
(CUSIP Number)
Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:
[ ] Rule 13d-1(b)
[X] Rule 13d-1(c)
[ ] Rule 13d-1(d)
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
<PAGE> 2
CUSIP NO. 74927 10 1 13G PAGE ___ OF ___ PAGES
- --------------------------------------------------------------------------------
1 Names of Reporting Persons/I.R.S. Identification Nos. of Above Persons
(Entities Only)
Deephaven Market Neutral Master Fund LP (N/A/ Foreign Entity)
- --------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group (a) [ ]
(See Instructions) (b) [x]
- --------------------------------------------------------------------------------
3 SEC Use Only
- --------------------------------------------------------------------------------
4 Citizenship or Place of Organization
British Virgin Islands
- --------------------------------------------------------------------------------
Number of
5 Sole Voting Power
Shares 11,832,879 (1)
-----------------------------------------------------
Beneficially 6 Shared Voting Power
0
Owned by -----------------------------------------------------
7 Sole Dispositive Power
Each 11,832,879 (1)
-----------------------------------------------------
Reporting 8 Shared Dispositive Power
0
Person With
- --------------------------------------------------------------------------------
9 Aggregate Amount Beneficially Owned by Each Reporting Person
11,832,879 (1)
- --------------------------------------------------------------------------------
10 Check if the Aggregate Amount in Row (9) Excludes Certain Shares [ ]
(See Instructions)
- --------------------------------------------------------------------------------
11 Percent of Class Represented by Amount in Row (9)
26.6% (2)
- --------------------------------------------------------------------------------
12 Type of Reporting Person (See Instructions)
(PN)
- --------------------------------------------------------------------------------
(1) Includes (i) 371,428 shares of common stock held by KA Investments LDC.,
(2) 11,461,442 shares of common stock issuable upon assumed exercise on
September 30, 1999 of repricing rights held by KA Investments LDC
entitling the acquisition of Repricing shares (however, the actual
number of shares of Common Stock issuable as Repricing Shares will
fluctuate with the Price of the Common Stock)
(2) Based on 33,040,699 shares of Common Stock outstanding as reported in
the Company's Quarterly Report on Form 10Q for the quarter ended March
31, 1999)
2
<PAGE> 3
CUSIP NO. 747927 10 1 13G PAGE ___ OF ___ PAGES
- --------------------------------------------------------------------------------
1 Names of Reporting Persons/I.R.S. Identification Nos. of Above Persons
(Entities Only)
Deephaven Private Placement Trading Ltd (n/a/ foreign entity)
- --------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group (a) [ ]
(See Instructions) (b) [x]
- --------------------------------------------------------------------------------
3 SEC Use Only
- --------------------------------------------------------------------------------
4 Citizenship or Place of Organization
British Virgin Islands
- --------------------------------------------------------------------------------
Number of
5 Sole Voting Power
Shares 11,832,879 (1)
-----------------------------------------------------
Beneficially 6 Shared Voting Power
0
Owned by -----------------------------------------------------
7 Sole Dispositive Power
Each 11,832,879 (1)
-----------------------------------------------------
Reporting 8 Shared Dispositive Power
Person With 0
- --------------------------------------------------------------------------------
9 Aggregate Amount Beneficially Owned by Each Reporting Person
11,832,879 (1)
- --------------------------------------------------------------------------------
10 Check if the Aggregate Amount in Row (9) Excludes Certain Shares [ ]
(See Instructions)
- --------------------------------------------------------------------------------
11 Percent of Class Represented by Amount in Row (9)
26.6% (2)
- --------------------------------------------------------------------------------
12 Type of Reporting Person (See Instructions)
(CO)
- --------------------------------------------------------------------------------
(1) Includes (i) 371,428 shares of common stock held by KA Investments LDC.,
(ii) 11,461,442 shares of Common stock issuable upon assumed exercise on
September 30, 1999 of repricing rights held by KA Investments LDC
entitling the acquisition of Repricing shares (however, the actual
number of shares of Common Stock issuable as Repricing Shares will
fluctuate with the Price of the Common Stock)
(2) Based on 33,040,699 shares of Common Stock outstanding as reported in
the Company's Quarterly Report on Form 10Q for the quarter ended March
31, 1999)
3
<PAGE> 4
CUSIP NO. 747927 10 1 13G PAGE ___ OF ___ PAGES
- --------------------------------------------------------------------------------
1 Names of Reporting Persons/I.R.S. Identification Nos. of Above Persons
(Entities Only)
KA Investments LDC (N/A Foreign Entity)
- --------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group (a) [ ]
(See Instructions) (b) [x]
- --------------------------------------------------------------------------------
3 SEC Use Only
- --------------------------------------------------------------------------------
4 Citizenship or Place of Organization
Cayman Islands
- --------------------------------------------------------------------------------
Number of
5 Sole Voting Power
Shares 11,832,879 (1)
-----------------------------------------------------
Beneficially 6 Shared Voting Power
0
Owned by -----------------------------------------------------
7 Sole Dispositive Power
Each 11,832,879 (1)
-----------------------------------------------------
Reporting 8 Shared Dispositive Power
Person With 0
- --------------------------------------------------------------------------------
9 Aggregate Amount Beneficially Owned by Each Reporting Person
11,832,879 (1)
- --------------------------------------------------------------------------------
10 Check if the Aggregate Amount in Row (9) Excludes Certain Shares [ ]
(See Instructions)
- --------------------------------------------------------------------------------
11 Percent of Class Represented by Amount in Row (9)
26.6%
- --------------------------------------------------------------------------------
12 Type of Reporting Person (See Instructions)
(CO)
- --------------------------------------------------------------------------------
(1) Includes (i) 371,428 shares of common stock held by KA Investments LDC.,
(2) 11,461,442 shares of Common stock issuable upon assumed exercise on
September 30, 1999 of repricing rights held by KA Investments LDC
entitling the acquisition of Repricing shares (however, the actual
number of shares of Common Stock issuable as Repricing Shares will
fluctuate with the Price of the Common Stock)
(2) Based on 33,040,699 shares of Common Stock outstanding as reported in
the Company's Quarterly Report on Form 10Q for the quarter ended March
31, 1999)
4
<PAGE> 5
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
DISCLAIMER: Information in this Schedule 13G is provided solely for the purpose
of complying with Sections 13(d) and 13(g) of the Act and regulations
promulgated thereunder, and is not to be construed as an admission that Wells
Fargo & Company or any of its subsidiaries is the beneficial owner of the
securities covered by this Schedule 13G for any purpose whatsoever.
Item 1(a) Name of Issuer:
Queen Sand Resources, Inc.
Item 1(b) Address of Issuer's Principal Executive Offices:
13760 Noel Road, Suite 1030
Dallas, TX 75240-7336
Item 2(a) Name of Person Filing:
1. Deephaven Market Neutral Master Fund LP
2. Deephaven Private Placement Trading LTD
3. KA Investments LDC
Item 2(b) Address of Principal Business Office:
1. 1712 Hopkins Crossroad
Hopkins, MN 55305
2. 1712 Hopkins Crossroad
Hopkins, MN 55305
3. 1712 Hopkins Crossroad
Hopkins, MN 55305
Item 2(c) Citizenship:
1. Deephaven Market Neutral Master Fund LP British Virgin Islands
2. Deephaven Private Placement Trading LTD British Virgin Islands
3. KA Investments LDC Cayman Islands
Item 2(d) Title of Class of Securities:
Common Stock
Item 2(e) CUSIP Number:
747927 10 1
5
<PAGE> 6
Item 3 The person filing is a:
1. Deephaven Market Neutral Master Fund LP (PN)
2. Deephaven Private Placement Trading LTD (CO)
3. KA Investments LDC (CO)
Item 4 Ownership:
See Items 5-11 of each cover page
Item 5 Ownership of Five Percent or Less of a Class:
If this statement is being filed to report the fact that as of the
date hereof the reporting persons have ceased to be beneficial owners
of more than five percent of the class of securities, check the
following [ ].
Item 6 Ownership of More than Five Percent on Behalf of Another
Person:
Not applicable.
Item 7 Identification and Classification of the Subsidiary Which
Acquired the Security Being Reported on by the Parent
Holding Company:
See Schedule A
Item 8 Identification and Classification of Members of the Group:
Not Applicable
Item 9 Notice of Dissolution of Group:
Not Applicable
6
<PAGE> 7
Item 10 Certification:
By signing below, I certify that, to the best of my knowledge and
belief, the securities referred to above were acquired in the
ordinary course of business and were not acquired for the purpose of
and do not have the effect of changing or influencing the control of
the issuer of such securities and were not acquired in connection
with or as a participant in any transaction having such purposes or
effect.
Signature.
After reasonable inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete, and correct.
Date: October ___________, 1999
DEEPHAVEN MARKET NEUTRAL MASTER FUND LP
By:
------------------------------------
Colin Lancaster, Secretary
DEEPHAVEN PRIVATE PLACEMENT TRADING LTD.
By:
------------------------------------
Colin Lancaster, Secretary
KA INVESTMENTS LDC
By:
------------------------------------
Colin Lancaster, Secretary
7
<PAGE> 8
Schedule A
Control Persons of:
1. Deephaven Market Neutral Master Fund LP ( A British Virgin
Islands Limited Partnership)
- Deephaven Market Neutral Fund Limited ( A British Virgin
Islands Corporation)
- Deephaven Capital Management LLC (A Delaware Limited
Liability Company)
2. Deephaven Market Neutral Fund Limited (A British Virgin Islands
Corporation)
- Deephaven Capital LLC ( A Delaware Limited Liability
Company)
3. KA Investments LDC (A British Virgin Islands Company)
- Deephaven Market Neutral Master Fund LP ( A British Virgin
Islands Limited Partnership)
- Deephaven Capital Management LLC (A Delaware Limited
Liability Company)
- Deephaven Private Placement Trading LTD ( A British
Virgin Island Corporation)
4. Deephaven Capital Management LLC
- Arbitrade Holdings LLC ( A Delaware LLC)
5. Arbitrade Holdings LLC
- Irvin Kessler, Efraim Gildor, Peter Hajas, Merrill
Ferguson and Mark Lyons
6. Deephaven Private Placement Trading LTD (A British Virgin
Island Corporation)
- Deephaven Market Neutral Master Fund LP ( A British
Virgin Islands Limited Partnership)
- Deephaven Capital Management LLC (A Delaware Limited
Liability Company)
All can be reached at
C/o Arbitrade Holdings LLC
1712 Hopkins Crossroad
Minnetonka, MN 55305
(612) 542-4238
8
