World Oil Group, Inc. Completes Transaction with MDN Peru, S.A.C and MDN.COM ERIL to Acquire 49% of Each Company
World Oil Group Has Sold Two More Tanks of Crude Oil to Ergon Refinery
DEBARY, FL / ACCESSWIRE / October 2, 2015 / World Oil Group, Inc. (PINKSHEETS: WOGI) is pleased to announce it has completed a transaction with MDN PERU S.A.C and MDN.COM ERIL heavy equipment operators in Lima, Peru.
World Oil Group, Inc. would like to welcome MDN Peru and its staff to the WOGI Group of Companies.
World Oil Group, Inc. is proud to announce it's first of more to come acquisitions by creative financing that does not dilute its shares, but is truly a value add to World Oil Group, Inc. and its shareholders.
World Oil Group entered in to a Securities Exchange Agreement with both MDN PERU and MDN.COM and exchanged 500,000 shares of WOGI's restricted common stock for a 49% interest in each company. WOGI has also agreed to reinvest $125,000 of its share of the revenue generated back into each company.
The transaction brings assets to the books of WOGI along with revenue from ongoing existing operations from two companies. WOGI will help grow MDN operations to into multiple markets in the construction, mining and government contracting services in Peru and the surrounding countries.
WOGI's CEO Nathan Hall is no stranger to construction, heavy equipment and emergency management, he has a background as a Class A General Contractor including telecommunications/military satellite (Quality Assurance Evaluator-QAE-Contract Office Representative/communications installer) and Direct Broadcast Satellite installation from the US Army and in his civilian life. He can bring his experience and consulting in working in overseeing and evaluating opportunities for WOGI South America's diverse operations. WOGI South America, S.A.A. is diverse company in Petroleum, Mining, Agricultural, Commodities, Business Services and Real Estate & Construction. It's the base to grow in Central & South America.
Peru plans to implement projects in excess of 43 billion dollars over the next five years and to develop these projects the country will require equipment, and considering that these projects only use 30% of their costs in equipment, they will spend 13 billion dollars in earthwork and cargo handling equipment used. Therefore, the demand for high tonnage cranes is growing, as the projects are getting bigger and require larger capacity equipment and scope.
MDN Group is divided into two companies: MDN.COM EIRL and MDN PERU SAC. Which are Peruvian companies with over 5 years of total experience in the Peruvian market. It is dedicated to the sale, maintenance and rental of heavy machinery and cranes, while serving customers in the mining, construction, and energy among others. MDN Group is recognized in the market as the leader in the segment of rental of cargo handling equipment and cranes of high tonnage and as a reliable service provider.
MDN.COM EIRL, was created in 2011 for the purpose of providing rental services of cargo handling equipment of low tonnage equipment, with its main customers and companies in the mining and construction category such as; Odebrecht, Camesa, JME, MMG, ABB, and Tecnofast among others. MDN.COM began operations at the Las Bambas project renting trucks and cranes of lower tonnage. MDN.COM went to offer its services in the expansion of the Port of Matarani customer with Odebrecht and many other projects in the country.
MDN PERU SAC, provides equipment rental services in cargo handling of high tonnage equipment. MDN currently has operations in the Chaglla Hydroelectric project our client Odebrecht is renting 2 cranes of 300 tons and 16 tons, which are used to mount the pipeline 200 meters high, which is considered the riskiest throughout the construction process on this project. MDN also services ABB, MMG Las Bambas, JME and other clients.
MDN is already positioned in the market to rent cargo handling equipment. Therefore, MDN has has secured the demand to sell and rent equipment. MDN also has experience in managing the fleet in such a way to reduce operating costs and maintenance, so to increase profits and reduce the time for payback of new equipment is seek to acquire and bring to Peru. Both companies were founded by professionals with over 20 years of experience in fleet management, having worked in different areas as mining, construction, energy in the areas of planning, operation and administration.
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