The Story Of Mantyla McReynolds, The Penny Stock Auditor Hired By Northern Oil And Gas

bikinicarwash

Photo: lone photowolf on flickr

There are lots of things that I do not know about Northern Oil and Gas.  The thing I would most like to know are the flow rates on their wells at initial, six month, twelve months, eighteen months and 20 four months.  The decline rates of the wells are the key to the economics of the Bakken and will tell you whether any or all the stocks are buys or even shorts.  The decline data I have suggests a decline rate of over 2 per cent per day but only includes the front-end of the decline curve.

My first post had one question that left me pondering.  The question was how did Northern Oil and later Voyager Oil choose an auditor that nobody has ever heard of in Salt Lake City over twelve hundred miles from their office?

Moreover it wasn’t any ordinary auditor – it was Mantyla McReynolds, an auditor with an almost unblemished record of auditing penny stocks that later collapsed.

Well I have the answer – at least in the case of Northern Oil.  The auditor came with the initial shell company into which Northern Oil was merged.  Mantyla McReynolds was the auditor both before and after the reverse take over.

The initial shell company was called Kentex Petroleum and it was controlled by Duane S Jensen.  The initial shareholders received 6 per cent of Northern Oil for just a listing.

Duane (and his children) have a long record with penny-stocks using the same Salt Lake City auditor.

Indeed a few Jensen (sometimes Jenson) specials were mentioned in the first Northern Oil blog post.

However Bikini Team International Inc stands out.  

This is their business description:

Our initial operations consisted of a “bikini team” comprised of women clad in bikinis who were engaged through us to appear for a fee. Some of the events that the bikini team appeared at were: an NFL super bowl party at the Roadhouse Grill in Evanston, Wyoming; as “ring” girls from May 2001 to September 2002 for the Wendover Boxing Series; the 24th of July Rodeo at the Delta centre Salt Lake City, Utah in 2001 and 2002; and the 2002 Winter Olympics, which were held in Salt Lake City, Utah, where they worked for Budweiser as the snow angels and hosted several pre-Olympic parties with Budweiser. They also appeared at several charity events, primarily in held in the State of Utah, like the X-Mas box foundation, the Cancer foundation, Christmas toy drive, Ron Boone golf classic at Thanksgiving Point, Downs Charity, Make a Wish foundation and the Ride for Hope With Harley Davidson in May 2001 and 2002. They also hosted bands at concerts, such as Lifehouse and 3 Doors Down and appeared on the Salt Lake City Fox 13 television morning show and sports segment “Rungee Time” for 15 months.

I really wanted to find photos of the Swedish Bikini Team – but all I found is Duane’s (sometime Dwayne’s)  more colourful record going back to the 1970s including SEC sanction and rougher…

If readers want to dig they will find plenty that is amusing.  I still chortling at a listed superbowl party.

This post originally appeared at Bronte Capital.

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