North West Oil Group, Inc. (NWOL)

[Lochan]

I just looked over the infomation memorandum concerning the proposed acquisition of SNGF. I like the solid increase in production forecast over the next five years. Over ten years,
they expect a total profit of $90 million. The company has been profitable for the last several years with sales and profits increasing each year.

It's too bad that although the report is dated July 2, 2007, it does not include annual figures for 2006, only for the first quarter.

The balance sheet is strong. Financial ratios are healthy.

The report speaks of an oil producing field named Ostrolutskoye. It would be nice to get an update on how that field has progressed since its production test in 2005 which reached 10,000 tons of crude oil.

In all, a great acquisition for NWOG. Wow!

Note: All of the required information appears on the balance sheet, but the items are in reverse order from GAAP standard presentation. For example, assets should be listed beginning with the most liquid, i.e., cash and cash equivalents, and ending with fixed (depreciable) assets.