<PAGE> 1
File No. 69-299
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Form U-3A-2
STATEMENT BY HOLDING COMPANY CLAIMING EXEMPTION UNDER RULE
U-3A-2 FROM THE PROVISIONS OF THE PUBLIC UTILITY HOLDING
COMPANY ACT OF 1935
To be Filed Annually Prior to March 1
NWO RESOURCES, INC.
hereby files with the Securities and Exchange Commission, pursuant to Rule
U-3A-2, its statement claiming exemption as a holding company from the
provisions of the Public Utility Holding Company Act of 1935. In support of such
claim for exemption the following information is submitted:
1. Name, state of organization, location and nature of business of
claimant and every subsidiary thereof, other than any exempt wholesale
generator (EWG) or foreign utility company in which claimant directly
or indirectly holds an interest.
See List of Companies (Attachment 1)
NWO Resources, Inc. ("NWO") was organized to acquire shares of Ohio
Gas Company on December 12, 1984; NWO was incorporated in Ohio and is
located in Columbus, Ohio.
2. A brief description of the properties of claimant and each of its
subsidiary public utility companies used for the generation,
transmission, and distribution of electric energy for sale, or for the
production, transmission, and distribution of natural or manufactured
gas, indicating the location of principal generating plants,
transmission lines, producing fields, gas manufacturing plants, and
electric and gas distribution facilities, including all such
properties which are outside the State in which claimant and its
subsidiaries are organized and all transmission or pipelines which
deliver or receive electric energy or gas at the borders of such
State.
Ohio Gas Company's pipe line system serves the communities of Bryan,
Edgerton, Edon, Montpelier, Pioneer, Stryker, West Unity in Williams
County, Ohio; Archbold, Lyons, Metamora, Pettisville, Swanton,
Wauseon, Fayette, Delta, in Fulton County, Ohio; Antwerp, Paulding,
Payne in Paulding County, Ohio; Florida, Liberty Center, Napoleon,
Okolona, Ridgeville Corners in Henry County, Ohio; Defiance,
Hicksville, Jewell, Ney, Sherwood in Defiance County, Ohio; Neapolis,
Whitehouse in Lucas County, Ohio and rural customers in these areas.
<PAGE> 2
NWO RESOURCES, INC.
U-3A-2, File No. 69-299
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Page two
2. (Continued)
Ohio Gas Company is both a distributor and transporter of natural gas.
All natural gas is delivered to Ohio Gas Companys system by Panhandle
Eastern Pipe Line Company and ANR Pipeline Company. Ohio Gas Companys
transmission and distribution system consists of approximately 1,247
miles of mains (on a 3-inch main equivalent basis) serving, as of
December 31, 1997, approximately 41,660 customers in northwest Ohio.
Ohio Gas Company purchases gas for sale to customers from various
suppliers and producers.
Other companies referenced under item 1 have no properties.
3. The following information is for the last calendar year with respect
to claimant and each of the subsidiary public utility companies:
(a) Number of kwh of electric energy sold (at retail or wholesale),
and Mcf of natural or manufactured gas distributed at retail.
Ohio Gas Company sold at retail 6,682,708 Mcf of natural gas
during the last calendar year. In addition, 4,053,624 Mcf of gas
was transported for industrial and commercial customers.
Other companies referenced under item 1 -
NONE
(b) Number of Kwh of electric energy and Mcf of natural or
manufactured gas distributed at retail outside the State which
each such company is organized.
NONE
(c) Number of Kwh of electric energy and Mcf of natural or
manufactured gas sold at wholesale outside the State in which
each such company is organized, or at the State line.
NONE
(d) Number of Kwh of electric energy and Mcf of natural or
manufactured gas purchased outside the State in which each such
company is organized or at the State line.
NONE
<PAGE> 3
NWO RESOURCES, INC.
U-3A-2, File No. 69-299
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Page three
4. The following information for the reporting period with respect to
claimant and each interest it holds directly or indirectly in a EWG or
a foreign utility company, stating monetary amounts in United States
dollars:
(a) Name, location, business address and description of the
facilities used by the EWG or foreign utility company for the
generation, transmission and distribution of electric energy for
sale or for the distribution at retail of natural or manufactured
gas.
NONE
(b) Name of each system company that holds an interest in such EWG or
foreign utility company; and description of the interest held.
NONE
(c) Type and amount of capital invested, directly or indirectly, by
the holding company claiming exemption; and any direct or
indirect guarantee of the security of the EWG or foreign utility
company by the holding company claiming exemption; and any debt
or other financial obligation for which there is recourse,
directly or indirectly, to the holding company claiming exemption
or another system company, other than the EWG or foreign utility
company.
NONE
(d) Capitalization and earnings of the EWG or foreign utility company
during the reporting period.
NONE
(e) Identify any service, sales or construction contract(s) between
the EWG or foreign utility company and a system company, and
describe the services to be rendered or goods sold and fees or
revenues under such agreement(s).
NONE
<PAGE> 4
NWO RESOURCES, INC.
U-3A-2, File No. 69-299
------
Page four
Exhibit A
---------
A consolidating statement of income and surplus of the claimant and its
subsidiary companies for the last calendar year, together with a consolidating
balance sheet of claimant and its subsidiary companies as of the close of such
calendar year.
NWO Resources and Subsidiaries - (Attachment 2)
Oceanic Exploration Company (a 49.97% owned investee of International
Hydrocarbons) and its subsidiaries - (Attachment 3)
Exhibit B
---------
Total Assets 68,723,545
Total Operating Revenue 41,786,635
Net Income 3,623,298
Exhibit C
---------
Not Applicable
- --------------------------------------------------------------------------------
The above-named claimant has caused this statement to be duly executed on its
behalf by its authorized officer on the 27th day of February, 1998.
NWO Resources, Inc.
By: /s/John E. Jones
------------------------
John E. Jones
Secretary/Treasurer
Witness: /s/Joyce E. Knighton
------------------------
Name, title and address of officer to whom notices and correspondence concerning
this statement should be addressed:
Mr. Samuel Randazzo
21 East State Street, Suite 910
Columbus, Ohio 43215
<PAGE> 5
ATTACHMENT 1
NWO Resources, Inc.
List of Companies
SUBSIDIARIES:
- -------------
Ohio Gas Company Ohio Corporation
200 West High Street Natural Gas Distributor
Bryan, Ohio 43506 E.I.N. 34-4320120
Ohio Northwest Development, Inc. Ohio Corporation
200 West High Street Propane Storage Facility
Bryan, Ohio 43506 E.I.N. 34-1041621
International Hydrocarbons Wyoming Corporation
P.O. Box 467 Investment Corporation
Cheyenne, Wyoming 82003 E.I.N. 83-0275908
INVESTEES (MORE THAN 10% BUT LESS THAN 50% OWNERSHIP):
- ---------
Oceanic Exploration Company Delaware Corporation
5000 South Quebec, Suite 450 Oil and Gas Exploration/Leasing
Denver, Colorado 80237 E.I.N. 84-0591071
Oceanic International Properties* Colorado Corporation
5000 South Quebec, Suite 450 Oil and Gas Exploration/Leasing
Denver, Colorado 80237 E.I.N. 84-0742419
Oceanic Atlantic Resources* U.K. Corporation
(North Sea) Limited Oil and Gas Exploration/Leasing
% Oceanic Exploration Company E.I.N. None
5000 South Quebec, Suite 450
Denver, Colorado 80237
* 100% owned subsidiary of Oceanic Exploration Company.
<PAGE> 6
Attachment 2
NWO RESOURCES, INC.
CONSOLIDATING BALANCE SHEET
December 31, 1997
<TABLE>
<CAPTION>
NWO Ohio Northwest
Resources Ohio Gas Development, International Consolidating
ASSETS Inc. Company Inc. Hydrocarbon entries Consolidated
----------------------------------------------------------------------- ------------
PROPERTY, PLANT AND EQUIPMENT
<S> <C> <C> <C> <C> <C> <C>
Gas utility plant and equipment $ -- $ 56,577,256 $ -- $ -- $ 490,266 (3) $57,067,522
Less accumulated depreciation
and amortization -- (26,081,000) -- -- (212,264)(3) (26,293,264)
Non-utility plant and equipment -- -- 3,656,827 -- -- 3,656,827
Less accumulated depreciation
and amortization -- -- (2,678,826) -- -- (2,678,826)
----------------------------------------------------------------------- -----------
-- 30,496,256 978,001 -- 278,002 31,752,259
----------------------------------------------------------------------- -----------
CURRENT ASSETS
Cash and investments 54,148 841,588 667,094 983 -- 1,563,813
Accounts receivable less
allowance of $ 106,018 671,990 6,255,854 31 -- (500,543)(1) 6,427,332
Unbilled revenues -- 2,477,236 -- -- -- 2,477,236
Notes receivable affiliates 930,000 -- -- -- -- 930,000
Deferred gas costs -- 1,829,260 -- -- -- 1,829,260
Materials and supplies -- 519,246 -- -- -- 519,246
Gas in storage -- 6,388,834 -- -- -- 6,388,834
Prepaid gross receipts taxes -- -- -- -- -- --
Prepayments and other -- 2,344,014 15,320 -- -- 2,359,334
----------------------------------------------------------------------- -----------
1,656,138 20,656,032 682,445 983 (500,543) 22,495,055
----------------------------------------------------------------------- -----------
OTHER ASSETS
Investments 7,000,000 -- -- -- -- 7,000,000
Investment in Ohio Northwest Dev. -- 66,000 -- -- (66,000)(2) --
Investment in Ohio Gas Company 33,199,634 -- -- -- (33,199,634)(2) --
Investment in Int'l Hydrocarbons 2,787 -- -- -- (2,787)(2) --
Regulatory asset -- 259,083 -- -- -- 259,083
Notes receivable and other 7,286,442 (69,294) -- -- -- 7,217,148
----------------------------------------------------------------------- -----------
47,488,863 255,789 -- -- (33,268,421) 14,476,231
----------------------------------------------------------------------- -----------
$49,145,001 $ 51,408,077 $ 1,660,446 $983 $(33,490,962) $68,723,545
======================================================================= ===========
</TABLE>
<PAGE> 7
Attachment 2
NWO RESOURCES, INC.
CONSOLIDATING BALANCE SHEET
December 31, 1997
<TABLE>
<CAPTION>
NWO Ohio Northwest
CAPITALIZATION Resources Ohio Gas Development, International Consolidating
AND LIABILITIES Inc. Company Inc. Hydrocarbon entries Consolidated
------------------------------------------------------------------------- ------------
<S> <C> <C> <C> <C> <C> <C>
CAPITALIZATION
Preferred stock $23,000,000 $ -- $ -- $ -- $ -- $23,000,000
Common Stock 56,000 12,354,750 66,000 5,102,000 (17,522,750)(2) 56,000
Additional paid-in capital 645,000 -- -- 325,000 (325,000)(2) 645,000
Retained earnings (deficit) 21,060,597 19,308,626 1,258,256 (5,424,213) 5,424,213 (2) 21,060,597
(20,844,884)(2)
490,266 (3)
(212,264)(3)
------------------------------------------------------------------------- -----------
44,761,597 31,663,376 1,324,256 2,787 (32,990,419) 44,761,597
------------------------------------------------------------------------- -----------
LONG-TERM DEBT 4,150,000 -- -- -- -- 4,150,000
CURRENT LIABILITIES
Accounts payable 75,595 5,561,356 11,159 -- (19,303)(1) 5,628,807
Line of credit -- 4,000,000 -- -- -- 4,000,000
Accrued taxes 312,242 4,004,677 100,902 (1,804) (481,240)(1) 3,934,777
Rate refunds due customers -- -- -- -- -- --
Advance recovery of gas costs -- -- -- -- -- --
Other current liabilities 20,188 1,280,928 14,421 -- -- 1,315,537
------------------------------------------------------------------------- -----------
408,025 14,846,961 126,482 (1,804) (500,543) 14,879,121
------------------------------------------------------------------------- -----------
DEFERRED CREDITS
AND OTHER LIABILITIES
Federal income taxes (174,621) 2,147,109 209,708 -- -- 2,182,196
Investment tax credits -- 632,595 -- -- -- 632,595
Regulatory obligations -- 1,126,864 -- -- -- 1,126,864
Customer advances for construction -- 991,172 -- -- -- 991,172
------------------------------------------------------------------------- -----------
(174,621) 4,897,740 209,708 -- -- 4,932,827
------------------------------------------------------------------------- -----------
$49,145,001 $51,408,077 $1,660,446 $ 983 $(33,490,962) $68,723,545
========================================================================= ===========
</TABLE>
Consolidating and eliminating entries
(1) To eliminate intercompany taxes, interest, management fees and loans
(2) To eliminate intercompany equity and investments in subsidiaries
(3) To amortize excess of purchase price over net assets of Ohio Gas Company
<PAGE> 8
Attachment 2
NWO RESOURCES, INC.
CONSOLIDATING STATEMENT OF OPERATIONS
For the Twelve Months Ended December 31, 1997
<TABLE>
<CAPTION>
NWO Ohio Northwest
Resources Ohio Gas Development, International Consolidating
Inc. Company Inc. Hydrocarbon entries Consolidated
--------------------------------------------------------------------------- ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $ -- $40,638,885 $1,147,750 $ -- $ -- $41,786,635
OPERATING EXPENSES
Cost of gas -- 22,474,560 -- -- -- 22,474,560
Utility operations -- 5,161,291 362,397 -- (60,000)(1) 5,463,688
Maintenance -- 733,940 76,979 -- -- 810,919
Depreciation and amortization 3,195 1,774,208 77,948 -- 16,342 (3) 1,871,693
General and administrative 1,822,704 -- -- 116 -- 1,822,820
Other taxes 39,706 4,013,796 70,036 -- -- 4,123,538
Current Federal tax (benefit) (481,458) 1,391,206 175,291 (39) -- 1,085,000
Deferred Federal tax 82,798 825,121 16,081 -- -- 924,000
--------------------------------------------------------------------------- -----------
1,466,945 36,374,122 778,732 77 (43,658) 38,576,218
--------------------------------------------------------------------------- -----------
Operating income (loss) (1,466,945) 4,264,763 369,018 (77) 43,658 3,210,417
OTHER INCOME (DEDUCTIONS)
Income of subsidiaries 4,453,330 -- -- -- (4,453,330)(2) --
Interest income 833,056 47,206 -- -- -- 880,262
Interest expense (443,658) (222,950) -- -- -- (666,608)
Other 247,515 (10,501) 22,213 -- (60,000)(1) 199,227
--------------------------------------------------------------------------- -----------
5,090,243 (186,245) 22,213 -- (4,513,330) 412,881
--------------------------------------------------------------------------- -----------
NET INCOME (LOSS) $ 3,623,298 $ 4,078,518 $ 391,231 $(77) $(4,469,672) $ 3,623,298
=========================================================================== ===========
</TABLE>
Consolidating and eliminating entries
(1) To eliminate intercompany taxes, interest, management fees and loans
(2) To eliminate intercompany equity and investments in subsidiaries
(3) To amortize excess of purchase price over net assets of Ohio Gas Company
<PAGE> 9
Attachment 3
OCEANIC EXPLORATION COMPANY
Consolidating Balance Sheet
December 31,1997
<TABLE>
<CAPTION>
Oceanic Oceanic Oceanic
Exploration Atlantic Internat'l
Company Resources Properties Elimination's Consolidated
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Assets:
Cash and cash equivalents $ 68,844 $ -- $ 39,929 $ -- $ 108,773
Receivables -- -- 7,804 -- 7,804
Prepaid Expenses -- -- 1,982 -- 1,982
-------------------------------------------------------------------------------
68,844 -- 49,715 -- 118,559
-------------------------------------------------------------------------------
Oil and gas property interests,
full cost method:
Greece 39,000,000 -- -- -- 39,000,000
Accumulated depletion (38,456,565) -- -- -- (38,456,565)
-------------------------------------------------------------------------------
543,435 -- -- -- 543,435
-------------------------------------------------------------------------------
Other assets:
Investment in subsidiaries 14,304 -- -- (14,304) --
Intercompany receivable 2,770,389 -- -- (2,770,389) --
Other -- -- 2,720 -- 2,720
-------------------------------------------------------------------------------
2,784,693 -- 2,720 (2,784,693) 2,720
-------------------------------------------------------------------------------
$ 3,396,972 $ -- $ 52,435 $(2,784,693) $ 664,714
===============================================================================
Liabilities and Stockholders Equity:
Notes Payable - affiliates $ -- $ -- $ 3,563,025 $(2,770,389) $ 792,636
Accounts payable 34,870 3,141 165,010 $ -- 203,021
Accounts payable - affiliates -- -- 60,000 $ -- 60,000
Accrued interest -- 231,837 182 $ -- 232,019
United Kingdom taxes payable -- 234,252 $ -- 234,252
Other accrued expenses -- -- 101,772 $ -- 101,772
-------------------------------------------------------------------------------
34,870 469,230 3,889,989 (2,770,389) 1,623,700
-------------------------------------------------------------------------------
Intercompany payable, net (977,870) (683,534) 1,661,404 -- --
Deferred Income taxes 512,837 -- -- $ -- 512,837
-------------------------------------------------------------------------------
(465,033) (683,534) 1,661,404 -- 512,837
-------------------------------------------------------------------------------
Stockholders Equity:
Common stock 619,559 100 100 $ -- 619,759
Capital in excess of par value 155,696 -- -- $ -- 155,696
Retained earnings (deficit) 3,051,880 214,204 (5,499,058) (14,304) (2,247,278)
-------------------------------------------------------------------------------
3,827,135 214,304 (5,498,958) (14,304) (1,471,823)
-------------------------------------------------------------------------------
$ 3,396,972 $ -- $ 52,435 $(2,784,693) $ 664,714
===============================================================================
</TABLE>
<PAGE> 10
Attachment 3
OCEANIC EXPLORATION COMPANY
Consolidating Income Statement
For the Twelve Months Ended December 31, 1997
<TABLE>
<CAPTION>
Oceanic Oceanic Oceanic
Exploration Atlantic Internat'l
Company Resources Properties Elimination's Consolidated
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Revenues:
Oil and gas sales-Greece $ 627,070 $ -- $ -- $ -- $ 627,070
Interest income and other 2,929 6,060 311,368 -- 320,357
-----------------------------------------------------------------------
629,999 6,060 311,368 -- 947,427
-----------------------------------------------------------------------
Costs and expenses:
Interest and financing costs -- 20,438 71,504 $ -- 91,942
Exploration expenses 18 -- 29,842 $ -- 29,860
Depletion, depreciation,
and amortization 288,543 -- -- $ -- 288,543
General and administrative 7,809 (19,154) 606,150 $ -- 594,805
-----------------------------------------------------------------------
296,370 1,284 707,496 -- 1,005,150
-----------------------------------------------------------------------
Income before income taxes 333,629 4,776 (396,128) -- (57,723)
Provision for income taxes (155,726) $ -- $ -- $ -- (155,726)
-----------------------------------------------------------------------
Net income (loss) $ 177,903 $ 4,776 $(396,128) $ -- $ (213,449)
=======================================================================
</TABLE>
