North-West Oil Group is going to NASDAQ.
North West Oil Group Inc. (a subsidiary of CJSC North-West Oil Group) is preparing for the allocation on one of American stock exchanges — NASDAQ BB, American Stock Exchange or AIM. In the context of preparation one of the most mysterious players of the Russian oil world revealed for the first time its financial performance and output. According to analysts, future investors may be attracted by quick production performance.
CJSC North-West Oil Group was created in Saint Petersburg in 2004. The creation of the company was supported by «Тransneft» and «Surgutneftegas». CJSC NWOG possesses a number of licenses for recovery and exploration in Saratov region. In 2006 CJSC NWOG declared its merger with the Canadian oil company Nord Oil International Inc. (NOI Inc.). According to the terms of the agreement, NOI Inc. acquired 100% of the shares of two NWOG subsidiaries — “North-West Oil Group-Saratov Ltd.” and CJSC “Neftegazenergo”. CJSC NWOG received 59% of the shares of the new subsidiary — North West Oil Group Inc. (NWOG Inc.), and the owners of NOI Inc. — 41%.
CJSC North-West Oil Group was created in Saint Petersburg in 2004. The creation of the company was supported by «Тransneft» and «Surgutneftegas». CJSC NWOG possesses a number of licenses for recovery and exploration in Saratov region. In 2006 CJSC NWOG declared its merger with the Canadian oil company Nord Oil International Inc. (NOI Inc.). According to the terms of the agreement, NOI Inc. acquired 100% of the shares of two NWOG subsidiaries — “North-West Oil Group-Saratov Ltd.” and CJSC “Neftegazenergo”. CJSC NWOG received 59% of the shares of the new subsidiary — North West Oil Group Inc. (NWOG Inc.), and the owners of NOI Inc. — 41%.
The realization of new projects needs funds. As Mr. Malyshev, President of NWOG Inc. informed RBK Daily, the Russian-Canadian subsidiary began the preparation of documents for entering the so-called alternative stock exchanges. Presently three options are being considered — NASDAQ BB, American Stock Exchange or AIM. As well as that, NWOG Inc. is conducting negotiations with a view of selling Nord Oil past assets. We wish to recover about 10 ml. dollars, which we intend to spend on purchasing more profitable assets», — specified
Within the preparation for the receipt of listing NWOG Inc. disclosed its financial performance. For the first of April 2006 the value of the company’s assets constituted 102 ml. dollars (904,6 td. dollars in 2005), the overall amount of liabilities is 13 ml. dollars (a year before that - 501,3 td. dollars), out of which $12,2 ml. constitute long-term liabilities, obtained in the accounting period. The sales profit — $103 ml. (in 2005 — $1,3 ml.), net profit — $9,3 ml. (in 2005 — $126 td.). The operational performance of NWOG Inc. has also been disclosed. The current output makes up 120 td. Tons p.a., but it is planned to increase it by 60 td. tons, current reserves in С1-category constitute around 8 ml. tons.
Analysts emphasize, that there are few oil companies with Russian capital on these American stock exchanges . «NWOG Inc.’s decision to allocate precisely in the USA makes it more attractive for potential investors: “demands for issuers are stricter there than in London”, reports Ekaterina Kravchenko, a «Brockercreditservice» analyst. Experts found it difficult to assess the prospects of the company’s allocation. According to Andrey Gromadin, an MDM-Bank analyst, a quick dynamics of the development of the company’s production is the pledge of the shares’ attractiveness.
EKATERINA KOLESNIKOVA
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