Newspaper article THE JOURNAL RECORD

Australian Firm Enters U.S. Energy Market

Newspaper article THE JOURNAL RECORD

Australian Firm Enters U.S. Energy Market

Article excerpt

An Australian oil and gas company that operates a Tulsa office has moved its American depositary receipts traded on the OTC market.

Australia-based Red Fork Energy Ltd. is an independent oil and gas exploration and production company that has targeted the booming area of north central Oklahoma. Red Fork has begun trading its shares on the OTC Markets Group Inc., an electric over-the-counter marketplace.

The move is part of a trend where international companies are moving to the United States to cash in on the oil and natural gas industry, said M. "Jake" Dollarhide, CEO of Tulsa-based Longbow Asset Management.

"Particularly the gas shale and horizon oil plays," Dollarhide said.

With the strength of the Australian dollar over last few years, United States' assets are far less expensive, said Grace Keith, OTC spokeswoman.

"Over The Counter Markets provides U.S. investors with all the information and news to make intelligent choices about the stocks they buy," Keith said.

A U.S. bank issues equities called American depositary receipts, or ADRs, to allow U.S. investors to buy shares of non-U.S. companies in U.S. dollars during U.S. trading hours by U.S. brokers and held in U.S. accounts, Keith said. International companies, looking for opportunities to reach U.S. investors, want their shares to be made available in ADRs, which makes it easier for U.S. investors to hold shares in foreign companies.

"There are more than 90 Australian ADRs trading on all three OTC marketplaces, with around 43 trading on OTCQX," Keith said.

Generally, a stock is traded over-the-counter because the company is small or not able to meet exchange requirements for an exchange like the New York Stock Exchange.

The OTC Group, which provides prices for 10,000 securities, categorizes over-the-counter traded companies into three tiers: OTCQX is the top tier, which requires the strongest rules for financial information disclosure; followed by the OTCQB; then the OTC Pink.

There are more than 375 companies listed on the top tier market, Keith said. …

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