SOURCE: North-West Oil Group

May 25, 2007 07:25 ET

North-West Oil Group Presents Audited Consolidated Financial Statements for the Year Ending March 31, 2007

MOSCOW -- (MARKET WIRE) -- May 25, 2007 -- North-West Oil Group (PINKSHEETS: NWOG) today provided audited consolidated financial statements for the year ending March 31, 2007.

LIMITED LIABILITY  COMPANY «LISAUDIT»

5, Eldoradovskiy pereulok.,
Moscow 125167, Russia
Tel. 785-14-28
Fax 785-14-25
www.auinco.ru
INDEPENDENT AUDITORS' REPORT

To the Board of Directors and Stockholders of NORTH-WEST OIL GROUP INC.

We have audited the accompanying interim consolidated balance sheet of North-West Oil Group Inc. (the "Company") as of March 31, 2007 and the related interim consolidated statements of earnings and comprehensive income, stockholders' equity and cash flows for the period April 1, 2006 to March 31, 2007 . From April 1, 2005 to March 31, 2006 audited RSM TOP-AUDIT, Pokrovka str. 43, bldg. 1, Moscow, 103062, Russia, Telephone: +7(495) 916-09-11, Fax: +7(495) 917-87-89. These interim consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these interim consolidated financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance whether the consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall consolidated financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, these interim consolidated financial statements referred to above present fairly, in all material respects the financial position of the Company as at March 31, 2007 and the results of its operations and cash flows for the period ended April 1, 2006 to March 31, 2007 in conformity with accounting principles generally accepted in the United States of America.

ENDING MARCH 2007.

                    NORTH - WEST OIL GROUP INC.

                 CONSOLIDATED INTERIM BALANCE SHEET
                            (AUDITED)

                                           FOR THE PERIOD   FOR THE PERIOD
                                          APRIL  01, 2006   APRIL 01, 2005
                                           MARCH 31, 2007   MARCH 31, 2006
                                          ---------------   --------------
                                                U.S.$            U.S.$
                      ASSETS

CURRENT ASSETS
Cash and Equivalents                                3 000            3 092
Accounts Receivables                              404 710          713 663
Financial Assets                                                   765 361
Inventory                                          49 981          785 204
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Other                                             412 581          434 296
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Total Current Assets                              870 272        2 674,616
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Fixed Assets                                   49 443 919       99 679 186
Financial Assets                                4 923 623
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Total Assets                                   55 237 814      102 353 802
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    LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts Payable                                  951 120        1 021,767
Other Current Liabilities                       4 127 953           96 725
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Total Current Liabilities                       5 079 073        1 118,492
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Long Term Debt                                  1 439 916       12 235 595
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Total Liabilities                               6 518 989       13 354 087
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STOCKHOLDERS' EQUITY:
Capital Stock                                         347              347
Paid in Capital                                33 508 800       79 352 969
Retained Earnings                              15 209 678        9 646 399
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Total Stockholders Equity                      48 718 825       88 999 715
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Total Liabilities and Stockholders' Equity     55 237 814      102 353 802
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                     NORTH - WEST OIL GROUP INC.

   CONSOLIDATED INTERIM STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME
                              (AUDITED)

                                           FOR THE PERIOD   FOR THE PERIOD
                                          APRIL  01, 2006   APRIL 01, 2005
                                           MARCH 31, 2007   MARCH 31, 2006
                                          ---------------   --------------
                                                U.S.$            U.S.$

Sales:
Income                                         43,148,891      103,996,305
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Operating Expenses                             28,046,779       83,822,737
Selling, general and administrative             6,790,541        6,406,171
Amortization/Depreciation                         996 792        1 031 828
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                                               35,834,112       91,260,736
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Earnings before Provision for Income Taxes      7,314,799       12,735,569
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Total other Income Net                              5,326           20,799
--------------------------------------------------------------------------
Earnings before Tax Provision                   7,320,105       12,714,770
Provision for Income Tax Expense                1,756,825        3,051,544
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Net Income for the Period                       5,563,279        9,663,226
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Net Earnings for Common Share
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Fully Diluted
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Weighted Average Common Shares
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Fully Weighted Average Common
 Shares Outstanding
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                    NORTH - WEST OIL GROUP INC.
           CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
                             (AUDITED)

                                           FOR THE PERIOD   FOR THE PERIOD
                                          APRIL  01, 2006   APRIL 01, 2005
                                           MARCH 31, 2007   MARCH 31, 2006
                                          ---------------   --------------
                                                U.S.$            U.S.$
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Earnings                                    5,563,279        9,663,226
Depreciation and amortization                     996 792        1 031 828
(Increase) decrease in:                                 -                -
Changes in Receivables                            308 953         (517 582)
Changes in Liabilities                         (6 835 098)         716 666
Changes in other Operating                     33 508 800
Activities                                      1 473 584       (1 003 114)
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Net cash and cash equivalents provided by
OPERATING ACTIVITIES                           35 016 310        9 891 024
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CASH FLOWS FROM INVESTING ACTIVITIES
Increase Investments Assets                    16 290 635
Purchase of Capital Assets                       (230 468)    (111 171 618)
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NET CASH USED FOR INVESTING ACTIVITIES         16 060 167     (111 171 618)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in Paid in Capital                   (40 280 890)      88 999 369
Long-term loan                                (10 795 679)      12 235 595
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Net cash from Financing Activities            (51 076 569)     101 234 963
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Net (Decrease) Increase in Cash                       (92)         (45 631)
Cash- Beginning of Period                           3 092           48 723
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Cash - End of Period                                3 000            3 092
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SUPPLEMENTAL DISCLOSURE OF NON-CASH
FLOW INFORMATION
CASH PAID DURING THE YEAR FOR:
INTEREST                                                -                -
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INCOME TAXES                                            -                -
NORTH - WEST OIL GROUP INC.
NOTES FOR INTERIM CONSOLIDATED STATEMENTS AS AT MARCH 31, 2007
(AUDITED)
1. ACCOUNTING POLICIES

a) Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries.

c) Cash and Cash Equivalent

The Company considers highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents.

d) Fixed Assets

Furniture, fixtures and equipment are recorded at cost less accumulated depreciations which is provided on the straight-line basis over the estimated useful lives of the assets which range between three and seven years. Expenditures for maintenance and repairs are expensed as incurred.

Income Taxes

The Company accounts for income taxes in accordance with the "liability method" of accounting for income taxes. Accordingly, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, using the enacted tax rates in effect for the year in which the differences are expected to reverse. Current income taxes are based on the respective periods' taxable income for federal, state and foreign income tax reporting purposes. As at March 31, 2007 these amounts were $1,756,825

f) Earnings Per Share

Earnings per common share is computed pursuant to SFAS No. 128 "Earnings Per Share". Basic earnings per share is computed as net income (loss) available to common shareholders divided by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur from common shares issuable through stock options, warrants and convertible preferred stock.

g) Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

About North- West Oil Group (formerly Nord Oil International) North- West Oil Group is a non-reporting, publicly traded Oil & Gas company trading under the ticker symbol NWOG on the U.S. Pinksheets market

Important Information About Forward-Looking Statements

All statements in this news release that are other than statements of historical facts are forward-looking statements, which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as "anticipates," "believes," "could," "expects," "intends," "may," "should" and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.

A number of factors may affect our future results and may cause those results to differ materially from those indicated in any forward-looking statements made by us or on our behalf. Such factors include our limited operating history; our need for significant capital to finance internal growth as well as strategic acquisitions; our ability to attract and retain key employees and strategic partners; our ability to achieve and maintain profitability; fluctuations in the trading price and volume of our stock; competition from other providers of similar products and services; and other unanticipated future events and conditions.

Contact Information

  • Contact:
    Evgeniya Popova
    North West Oil Group
    Tel: +7 495 621 11 15
    E-Mail: jane@szng.ru
    Web: http://www.szng.ru

    Limited Liability Company "Audit-Invest-Consult"
    5, Eldoradovskiy pereulok.,
    Moscow 125167, Russia
    Tel. 785-14-28
    Fax 785-14-25
    www.auinco.ru