EX-99.1 2 v072247_99-1.htm

EXHIBIT 99.1

NORTHERN OIL AND GAS, INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEET
MARCH 31, 2007
(UNAUDITED)
ASSETS
 
Cash and Cash Equivalents
 
$
924,148
  
Prepaid Expenses
   
62,528
 
Total Current Assets
   
986,676
  
         
PROPERTY AND EQUIPMENT
       
Oil and Natural Gas Properties - Unproved, Using Full Cost Accounting:
       
Leasehold Interest - Montana
   
1,245,000
  
Leasehold Interest - North Dakota
   
556,493
  
Total Oil and Natural Gas Properties - Unproved
   
1,801,493
 
Office Equipment and Furniture, Net
   
8,412
 
Total Property and Equipment, Net
   
1,809,905
 
         
Total Assets
 
$
2,796,581
  
         
         
LIABILITIES AND STOCKHOLDERS’ EQUITY
         
CURRENT LIABILITIES
       
Accounts Payable
 
$
21,202
  
Total Current Liabilities
   
21,202
  
         
LONG-TERM LIABILITIES
   
-
 
         
Total Liabilities
   
21,202
  
         
STOCKHOLDERS' EQUITY
       
Preferred Stock, Par Value $.0001; 100,000 Authorized, 0 Outstanding
   
-
 
Common Stock, Par Value $.0001; 100,000,000 Authorized, 22,664,123 Outstanding
   
22,060
  
Additional Paid-in Capital
   
3,105,970
  
Deficit Accumulated during Development Stage
   
(352,651
)
Total Stockholders' Equity
   
2,775,379
  
         
Total Liabilities and Stockholders' Equity
 
$
2,796,581
  
         

 
 
 


NORTHERN OIL AND GAS, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND
FOR THE PERIOD FROM INCEPTION (OCTOBER 5, 2006) THROUGH MARCH 31, 2007
(UNAUDITED)


       
From
  
       
Inception on
  
       
October 5,
  
   
Three Months
  
2006
  
   
Ended
  
Through
  
   
March 31,
  
March 31,
  
   
2007
  
2007
  
           
REVENUES
 
$
-
  
$
-
  
               
EXPENSES
             
Share - Based Compensation Expense
   
216,986
   
255,561
 
General and Administrative Expense
   
69,691
   
107,490
 
Total Expenses
   
286,677
   
363,051
 
               
LOSS FROM OPERATIONS
   
(286,677
)
  
(363,051
)
               
OTHER INCOME
   
10,133
   
10,400
 
               
LOSS BEFORE INCOME TAXES
   
(276,544
)
  
(352,651
)
               
INCOME TAX PROVISION (BENEFIT)
   
-
   
-
 
               
NET LOSS
 
$
(276,544
)
$
(352,651
)
               
Net Loss Per Common Share - Basic and Diluted
 
$
(0.01
)
$
(0.02
)
               
Weighted Average Shares Outstanding - Basic and Diluted
   
20,196,836
   
19,110,760
 
 
 
2
 

NORTHERN OIL AND GAS, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)
FOR THE PERIOD FROM INCEPTION (OCTOBER 5, 2006) THROUGH MARCH 31, 2007
(UNAUDITED)


                   
Accumulated
      
                   
Deficit
  
Total
  
           
Additional
  
Stock
  
During
 
Stockholders'
  
   
Common Stock
  
Paid-in
  
Subscription
  
Development
  
Equity
  
   
Shares
  
Amount
  
Capital
  
Receivable
  
Stage
  
(Deficit)
  
                           
Balance at Inception (October 5, 2006)
    
-
 
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
                                       
Common Stock Issued
    
18,000,000
   
1,800
   
-
   
(1,400
)
  
-
   
400
 
                                       
Compensation Related Stock Option Grants
    
-
   
-
   
38,575
   
-
   
-
   
38,575
 
                                       
Net Income (Loss)
    
-
   
-
   
-
   
-
   
(76,107
)
  
(76,107
)
                                       
Balance - December 31, 2006
    
18,000,000
   
1,800
   
38,575
   
(1,400
)
  
(76,107
)
  
(37,132
)
                                       
Payment on Stock Subscriptions Receivable
    
-
   
-
   
-
   
1,400
   
-
   
1,400
 
                                       
Sale of 2,501,573 Common Shares for $1.05 Per Share
    
2,501,573
   
250
   
2,626,402
   
-
   
-
   
2,626,652
 
                                       
Private Placement Costs
    
-
   
-
   
(9,933
)
  
-
   
-
   
(9,933
)
                                       
Issued 400,000 Common Shares to Montana Oil and
                                      
Gas, Inc. for Leasehold Interest
    
400,000
   
40
   
419,960
   
-
   
-
   
420,000
 
                                       
Issued 271,440 Shares to Southfork Exploration, LLC
                                      
for Leasehold Interest
    
271,440
   
27
   
284,985
   
-
   
-
   
285,012
 
                                       
Balance Immediately Prior to Reverse Acquisition
                              
of Kentex
    
21,173,013
   
2,117
   
3,359,989
   
-
   
(76,107
)
  
3,285,999
 
                                       
Reverse Acquisition of Kentex:
                                      
Recapitalization of NOG with Kentex Common
                                      
Stock Issued in the Acquisition (Par Value
                                      
Changed to $.001 Per Share)
    
-
   
18,452
   
(18,452
)
  
-
   
-
   
-
 
Acquisition of Kentex
    
1,491,110
   
1,491
   
(1,491
)
  
-
   
-
   
-
 
Legal Fees
    
-
   
-
   
(25,000
)
  
-
   
-
   
(25,000
)
Introduction Fee
    
-
   
-
   
(12,500
)
  
-
   
-
   
(12,500
)
Payment to Kentex Stockholders
    
-
   
-
   
(377,500
)
  
-
   
-
   
(377,500
)
Other Professional Fees
    
-
   
-
   
(36,062
)
  
-
   
-
   
(36,062
)
Totals of Reverse Acquisition
    
1,491,110
   
19,943
   
(471,005
)
  
-
   
-
   
(451,062
)
 
Balance Immediately After Reverse Acquisition
                          
of Kentex
    
22,664,123
   
22,060
   
2,888,984
   
-
   
(76,107
)
  
2,834,937
 
                                       
Compensation Related Stock Option Grants
    
-
   
-
   
216,986
   
-
   
-
   
216,986
 
                                       
Net Income (Loss)
    
-
   
-
   
-
   
-
   
(276,544
)
  
(276,544
)
                                       
Balance - March 31, 2007
    
22,664,123
 
$
22,060
  
$
3,105,970
  
$
-
  
$
(352,651
)
$
2,775,379
  

 
3
 

NORTHERN OIL AND GAS, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND
FOR THE PERIOD FROM INCEPTION (OCTOBER 5, 2006) THROUGH MARCH 31, 2007
(UNAUDITED)
 
       
From
  
       
Inception on
  
       
October 5,
  
   
Three Months
  
2006
  
   
Ended
  
Through
  
   
March 31,
  
March 31,
  
   
2007
  
2007
  
CASH FLOWS FROM OPERATING ACTIVITIES
         
Net Loss
 
$
(276,544
)
$
(352,651
)
Adjustments to Reconcile Net Loss to Net Cash Used for Operating Activities:
             
Depreciation
   
260
   
260
 
Share - Based Compensation Expense
   
216,986
   
255,561
 
Increase in Prepaid Expenses
   
(61,528
)
  
(62,528
)
Increase in Accounts Payable
   
21,202
   
21,202
 
Net Cash Used For Operating Activities
   
(99,624
)
  
(138,156
)
               
CASH FLOWS FROM INVESTING ACTIVITIES
             
Purchases of Office Equipment and Furniture
   
(8,672
)
  
(8,672
)
Acquisition of Leasehold Interests in Oil and Gas Properties
   
(841,481
)
  
(1,096,481
)
Net Cash Used For Investing Activities
   
(850,153
)
  
(1,105,153
)
               
               
CASH FLOWS FROM FINANCING ACTIVITIES
             
Repayments of Convertible Notes Payable (Related Party)
   
(165,000
)
  
-
 
Proceeds from the Issuance of Common Stock - Net of Issuance Costs
   
1,188,990
   
2,167,457
 
Net Cash Provided by Financing Activities
   
1,023,990
   
2,167,457
 
               
NET INCREASE IN CASH AND CASH EQUIVALENTS
   
74,213
   
924,148
 
               
CASH AND CASH EQUIVALENTS - BEGINNING
   
849,935
   
-
 
               
CASH AND CASH EQUIVALENTS - ENDING
 
$
924,148
  
$
924,148
  
               
               
Supplemental Disclosure of Cash Flow Information
             
Cash paid during the period for interest
 
$
-
  
$
-
  
Cash paid during the period for income taxes
 
$
-
  
$
-
  
 
 
4