North West Oil Group, Inc. (NWOL)

[eik]

1. Nord Oil was not “a shell”. They used the shell company (Biometrics or whatever the name was) to get public. This is a Monimpex business (Parkin & Co) to do this kind of operations: http://www.monimpex.com/about_us_en.html Nord Oil had three wholly owned Russian subsidiaries: Nord Oil Products, Nord Oil Samara and NANA with real production and revenue.

2. The real question is just opposite to what you are asking: “Why did NDOL merge with North-West Oil Group?” NWOG actually got producing assets for free, and what was the benefit for NDOL shareholders? The only rational answer: They exchanged 59% of NDOL assets for 41% of NWOG assets plus unlimited growth potential that the company failed to prove so far. I already posted my history of relations with NDOL – after merger announcement I sold my shares (too early, way below $1) because I didn’t like and didn’t trust the deal. Another case, that I started buying back too early (around $0.3), but you never know where the bottom is. This company is for real, it’s not a scam, production is real, government support is real, the price will be much higher by the Summer 2007 (IMO). Note: NWOG has revenue and a lot of cash coming in, but I am not claiming that the company is profitable at this point – I just don’t know. We don’t have financial numbers to deal with (expenses, etc.). But at this price level this doesn’t matter – NWOG is severely undervalued based just on reserves numbers that are actually audited by RSM Top-Audit (not exactly western standards, but still something).

3. As to insiders dumping on merger announcement we can only speculate. Somebody definitely made a lot of money… I readily join the crowd that blames old NDOL management (Makarov, Parkin & Co). But I don’t have problems with new NWOG management yet. They are not familiar with US practice (especially Pink jungles), they don’t communicate with shareholders properly, they did this and that wrong. But they are interested in higher PPS more than I am.

IMO.