Shona Energy Company, Inc. (OTCQX: SHOAF, TSX-V:SHO) last week announced its first quarter 2012 financial results and began trading on the highest tier of the OTC Markets Group market – OTCQX International. OTC Markets Group Inc. claims to be the world’s largest electronic marketplace for equities traded over the counter.
Shona Energy is a young company experiencing phenomenal growth in revenues and has just reported profits for the first time this quarter. The company describes itself as “an international oil and natural gas exploration, development and production company focusing on South America, specifically Colombia and Peru.” It currently has two revenue-producing gas contracts and plans to increase revenues and profits by optimizing its producing properties, exploring/developing other properties in its portfolio and trying to acquire more oil and gas properties.
Serving as a great example of the potential for growth available in OTC-traded companies for those willing to look for them, Shona only began operations in 2005 as a private U.S. company. It became public in 2011 through a reverse takeover of a Canadian company, and began trading on the TSX-V in October 2011. (The TSX-V, V for Venture Exchange, is a Canadian stock exchange focused on providing growth capital in a well-regulated environment.)
Revenues in the quarter ended March 31st were over $6.2 million, compared to $4.0 million FOR ALL OF 2011, and only $375 thousand for the first quarter of 2011. Reported net income was $1.6 million for the first quarter of 2012 compared to a loss of $3.7 million in the same quarter of 2011, and what appears to be continual losses from inception until this quarter.
The company seems to be led by a highly experienced management team with decades of experience in different facets of the oil and gas business and experience in a number of countries around the world.