<PAGE> 1
File No. 69-299
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
Page two
2. (Continued)
Ohio Gas Company is both a distributor and transporter of natural gas.
All natural gas is delivered to Ohio Gas Company's system by Panhandle
Eastern Pipe Line Company and ANR Pipeline Company. Ohio Gas Company's
transmission and distribution system consists of approximately 1,258
miles of mains (on a 3-inch main equivalent basis) serving, as of
December 31, 1998, approximately 42,290 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 3,863,944 Mcf of natural gas in
Ohio during the last calendar year, with revenue of approximately
$22,750,000 related to these sales. In addition, 5,224,419 Mcf of
gas was transported in Ohio for industrial, commercial and
residential customers. Revenue recorded related to gas
transported during the year totaled approximately $6,875,000.
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
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 66,439,660
Total Operating Revenue 31,619,057
Net Loss (1,187,002)
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 22nd day of February, 1999.
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 1700 West
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
<TABLE>
NWO RESOURCES, INC.
CONSOLIDATING BALANCE SHEET
December 31, 1998
<CAPTION>
NWO Ohio Northwest
Resources Ohio Gas Development, International Consolidating
ASSETS Inc. Company Inc. Hydrocarbon entries Consolidated
------------------------------------------------------------------------ ------------
<S> <C> <C> <C> <C> <C> <C>
PROPERTY, PLANT AND EQUIPMENT
Gas utility plant and equipment $ -- $ 58,377,589 $ -- $ -- $ 490,266 (3) $ 58,867,855
Less accumulated depreciation
and amortization -- (27,734,564) -- -- (228,606)(3) (27,963,170)
Non-utility plant and equipment -- -- 3,814,900 -- -- 3,814,900
Less accumulated depreciation
and amortization -- -- (2,724,403) -- -- (2,724,403)
----------------------------------------------------------------------- ------------
-- 30,643,025 1,090,497 -- 261,660 31,995,182
----------------------------------------------------------------------- ------------
CURRENT ASSETS
Cash and investments 111,130 709,724 1,058,044 25,518 -- 1,904,416
Accounts receivable less
allowance of $166,644 355,645 4,495,276 -- 75,659 (335,186)(1) 4,591,394
Unbilled revenues -- 2,292,301 -- -- -- 2,292,301
Notes receivable affiliates 1,040,000 187,180 -- -- (297,180)(1) 930,000
Deferred gas costs -- 1,994,595 -- -- -- 1,994,595
Materials and supplies -- 499,515 259,425 -- -- 758,940
Gas in storage -- 9,293,204 -- -- 9,293,204
Prepaid gross receipts taxes -- 1,170,720 -- -- -- 1,170,720
Prepayments and other -- 1,095,755 13,398 -- (15,000) 1,094,153
----------------------------------------------------------------------- ------------
1,506,775 21,738,270 1,330,867 101,177 (647,366) 24,029,723
----------------------------------------------------------------------- ------------
OTHER ASSETS
Investments 1,750,000 -- -- -- -- 1,750,000
Investment in Ohio Northwest Dev. -- 66,000 -- -- (66,000)(2) --
Investment in Ohio Gas Company 33,497,127 -- -- -- (33,497,127)(2) --
Investment in Int'l Hydrocarbons 8,643,804 -- -- -- (8,643,804)(2) --
Regulatory asset -- 259,083 -- -- -- 259,083
Notes receivable and other 8,250 42,422 -- 8,355,000 -- 8,405,672
----------------------------------------------------------------------- ------------
43,899,181 367,505 -- 8,355,000 (42,206,931) 10,414,755
----------------------------------------------------------------------- ------------
$45,405,956 $ 52,748,800 $ 2,421,364 $8,456,177 $(42,592,637) $ 66,439,660
======================================================================= ============
</TABLE>
<PAGE> 7
Attachment 2
<TABLE>
NWO RESOURCES, INC.
CONSOLIDATING BALANCE SHEET
December 31, 1998
<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
Capital Contribution - NWO Resources -- -- -- 8,766,418 (8,766,418) --
Additional paid-in capital 645,000 -- -- 325,000 (325,000)(2) 645,000
Retained earnings (deficit) 19,831,595 19,059,845 1,820,873 (5,549,614) 5,549,614 (2) 19,831,595
(21,142,378)(2)
490,266 (3)
(228,606)(3)
----------------------------------------------------------------------- -----------
43,532,595 31,414,595 1,886,873 8,643,804 (41,945,272) 43,532,595
----------------------------------------------------------------------- -----------
LONG-TERM DEBT 3,000,000 -- -- -- 3,000,000
CURRENT LIABILITIES
Accounts payable 177,158 5,441,049 239,899 -- (522,365)(1) 5,335,741
Line of credit -- 5,700,000 -- -- -- 5,700,000
Accrued taxes 382,294 3,738,028 62,596 36,469 -- 4,219,387
Rate refunds due customers -- -- -- -- -- --
Advance recovery of gas costs -- -- -- -- -- --
Other current liabilities 15,000 1,322,132 10,585 -- (15,000) 1,332,717
----------------------------------------------------------------------- -----------
574,452 16,201,209 313,080 36,469 (537,365) 16,587,845
----------------------------------------------------------------------- -----------
DEFERRED CREDITS
AND OTHER LIABILITIES
Federal income taxes (1,701,091) 2,280,768 221,411 (334,096) -- 466,992
Investment tax credits -- 581,747 -- -- -- 581,747
Regulatory obligations -- 1,126,864 -- -- -- 1,126,864
Customer advances for construction 752,030 752,030
Other -- 391,587 -- 110,000 (110,000) 391,587
----------------------------------------------------------------------- -----------
(1,701,091) 5,132,996 221,411 (224,096) (110,000) 3,319,220
----------------------------------------------------------------------- -----------
$45,405,956 $52,748,800 $2,421,364 $ 8,456,177 $(42,592,637) $66,439,660
======================================================================= ===========
</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
<TABLE>
NWO RESOURCES, INC.
CONSOLIDATING STATEMENT OF OPERATIONS
For the Twelve Months Ended December 31, 1998
<CAPTION>
Ohio
NWO Northwest
Resources Ohio Gas Development, International Consolidating
Inc. Company Inc. Hydrocarbon entries Consolidated
--------------------------------------------------------------------- ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $ -- $30,159,882 $1,459,175 $ -- $ -- $31,619,057
OPERATING EXPENSES
Cost of gas -- 14,004,507 -- -- -- 14,004,507
Utility operations -- 5,096,335 401,044 -- (60,000)(1) 5,437,379
Maintenance -- 753,403 85,053 -- -- 838,456
Depreciation and amortization 3,192 1,862,260 74,574 -- 16,342 (3) 1,956,368
General and administrative 1,761,459 -- -- 25 -- 1,761,484
Other taxes 42,406 3,974,469 88,080 -- -- 4,104,955
Current Federal tax (benefit) (461,850) 1,747,534 278,130 38,273 -- 1,602,087
Deferred Federal tax (benefit) (1,795,966) (217,492) 11,703 (64,600) -- (2,066,355)
-------------------------------------------------------------------- -----------
(450,759) 27,221,016 938,584 (26,302) (43,658) 27,638,881
-------------------------------------------------------------------- -----------
Operating income (loss) 450,759 2,938,866 520,591 26,302 43,658 3,980,176
OTHER INCOME (DEDUCTIONS)
Income of subsidiaries 3,246,388 -- -- -- (3,246,388)(2) --
Interest income 621,298 -- -- 113,367 (775) 733,890
Interest expense (315,447) (268,658) -- (775) 775 (584,105)
Other (5,190,000) 81,011 42,026 (190,000) (60,000)(1) (5,316,963)
-------------------------------------------------------------------- -----------
(1,637,761) (187,647) 42,026 (77,408) (3,306,388) (5,167,178)
-------------------------------------------------------------------- -----------
NET INCOME (LOSS) $(1,187,002) $ 2,751,219 $ 562,617 $ (51,106) $(3,262,730) $(1,187,002)
==================================================================== ===========
</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
<TABLE>
OCEANIC EXPLORATION COMPANY
Consolidating Balance Sheet
December 31, 1998
<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 $ 9,959 $ -- $ 19,759 $ -- $ 29,718
Receivables -- -- 11,719 -- 11,719
Prepaid Expenses -- -- 2,122 -- 2,122
-----------------------------------------------------------------------
9,959 -- 33,600 -- 43,559
-----------------------------------------------------------------------
Oil and gas property interests,
full cost method:
Greece 39,000,000 -- -- -- 39,000,000
Accumulated depletion (38,952,500) -- -- -- (38,952,500)
-----------------------------------------------------------------------
47,500 -- -- -- 47,500
-----------------------------------------------------------------------
Other assets:
Investment in subsidiaries 14,304 -- -- (14,304) --
Intercompany receivable 2,849,389 -- -- (2,849,389) --
Other -- -- 2,080 -- 2,080
-----------------------------------------------------------------------
2,863,693 -- 2,080 (2,863,693) 2,080
-----------------------------------------------------------------------
$ 2,921,152 $ -- $ 35,680 $(2,863,693) $ 93,139
=======================================================================
Liabilities and Stockholders Equity:
Notes Payable - affiliates $ -- $ -- $ 3,832,025 $(2,849,389) $ 982,636
Accounts payable 1,020 3,202 155,304 -- 159,526
Accounts payable - affiliates -- -- 60,000 -- 60,000
Accrued interest -- 240,186 75,658 -- 315,844
United Kingdom taxes payable -- 259,326 -- 259,326
Other accrued expenses -- -- 97,472 -- 97,472
-----------------------------------------------------------------------
1,020 502,714 4,220,459 (2,849,389) 1,874,804
-----------------------------------------------------------------------
Intercompany payable, net (977,870) (683,534) 1,661,404 -- --
Deferred Income taxes 45,734 -- -- -- 45,734
-----------------------------------------------------------------------
(932,136) (683,534) 1,661,404 -- 45,734
-----------------------------------------------------------------------
Stockholders Equity:
Common stock 619,559 100 100 -- 619,759
Capital in excess of par value 155,696 -- -- -- 155,696
Retained earnings (deficit) 3,077,013 180,720 (5,846,283) (14,304) (2,602,854)
-----------------------------------------------------------------------
3,852,268 180,820 (5,846,183) (14,304) (1,827,399)
-----------------------------------------------------------------------
$ 2,921,152 $ -- $ 35,680 $(2,863,693) $ 93,139
=======================================================================
</TABLE>
<PAGE> 10
Attachment 3
<TABLE>
OCEANIC EXPLORATION COMPANY
Consolidating Income Statement
For the Twelve Months Ended December 31, 1998
<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 $ 123,243 $ -- $ -- $ -- $ 123,243
Interest income and other 724 (2,401) 434,423 -- 432,746
---------------------------------------------------------------
123,967 (2,401) 434,423 -- 555,989
---------------------------------------------------------------
Costs and expenses:
Interest and financing costs -- 22,171 75,477 -- 97,648
Exploration expenses -- -- 7,898 -- 7,898
Depletion, depreciation,
and amortization 495,936 -- -- -- 495,936
General and administrative 20,702 8,912 698,273 -- 727,887
---------------------------------------------------------------
516,638 31,083 781,648 -- 1,329,369
---------------------------------------------------------------
Income before income taxes (392,671) (33,484) (347,225) -- (773,380)
Provision for income taxes 417,804 -- -- -- 417,804
---------------------------------------------------------------
Net income (loss) $ 25,133 $(33,484) $(347,225) $ -- $ (355,576)
===============================================================
</TABLE>
