1074447--3/18/2010--MANAS_PETROLEUM

related topics

{stock, price, share}

{gas, price, oil}

{interest, director, officer}

{operation, international, foreign}

{stock, price, operating}

{cost, contract, operation}

{loan, real, estate}

{investment, property, distribution}

{cost, regulation, environmental}

{acquisition, growth, future}

{regulation, change, law}

{product, candidate, development}

{personnel, key, retain}

{loss, insurance, financial}

{control, financial, internal}

{capital, credit, financial}

{debt, indebtedness, cash}

Risks Associated with Our Company We engage in a significant portion of our operations through ventures (farm-outs and other non-operating interests) that we do not control. We may not be able to materially affect the success of those ventures. There is a substantial doubt about our ability to continue as a going concern. If we cannot continue to operate our business, you could lose your entire investment in our company. We have had negative cash flows from operations, and our current resources are only sufficient to fund our operations for nine months from March 2010. Our business operations may fail if our actual cash requirements exceed our estimates and we are not able to obtain further financing. Our disclosure controls and procedures and internal control over financial reporting were proven not effective, which may cause our financial reporting to be unreliable and lead to misinformation being disseminated to the public. Our lack of diversification increases the risk of an investment in us, and our financial condition and results of operations may deteriorate if we fail to diversify. We may not effectively manage the growth necessary to execute our business plan. We may be forced to liquidate one or more subsidiaries due to regulatory requirements which could have a material adverse effect on our business and operations. We are subject to various risks of foreign operations. Substantially all of our assets and all of our directors and officers are outside the United States, with the result that it may be difficult for investors to enforce within the United States any judgments obtained against us or any of our directors or officers. Our articles of incorporation exculpate our officers and directors from any liability to our company or our stockholders. A decline in the price of our common stock could affect our ability to raise further capital and our ability to continue our normal operations. The loss of certain key management employees could have a material adverse effect on our business. There are potential conflicts of interest between our company and some of our directors and officers. Risks Associated with Our Business We have not discovered any oil and gas reserves, and we cannot assure you that that we ever will. The nature of oil and gas exploration makes the estimates of costs uncertain, and our operations may be adversely affected if we underestimate such costs. Even if we discover and then develop oil and gas reserves, we may have difficulty distributing our production. The oil and natural gas industry is highly competitive and there is no assurance that we will be successful in acquiring leases, equipment and personnel. Exploration for economic reserves of oil and natural gas is subject to a number of industry specific risks. Prices and markets for oil are unpredictable and tend to fluctuate significantly, which could reduce profitability, growth and the value of our business if we ever begin exploitation of reserves. Our business will suffer if we cannot obtain or maintain necessary licenses. Amendments to current laws and regulations governing our proposed operations could have a material adverse impact on our proposed business. Penalties we may incur could impair our business. Our inability to obtain necessary facilities could hamper our operations. Emerging markets are subject to greater risks than more developed markets, including significant legal, economic and political risks. Strategic relationships upon which we may rely are subject to change, which may diminish our ability to conduct our operations. Environmental risks may adversely affect our business. Losses and liabilities arising from uninsured or under-insured hazards could have a material adverse effect on our business. Fluctuations in current exchange rates could have a material adverse impact on our operations. Risks Associated with Our Common Stock Trading on the OTC Bulletin Board may be volatile and sporadic, which could depress the market price of our common stock and make it difficult for our stockholders to resell their shares. The price of our common stock may become volatile, which could lead to losses by investors and costly securities litigation. There are a large number of unexercised share purchase warrants and stock options outstanding. If these are exercised, your interest in our company will be diluted. If we obtain additional financing through the sale of additional equity in our company, the issuance of additional shares of common stock will result in dilution to our existing stockholders. Our directors and the financial advisor to our board of directors own approximately 34.4% of our outstanding common stock. We do not expect to pay dividends in the foreseeable future. Our stock is a penny stock. Trading of our stock may be restricted by the Securities and Exchange Commission s penny stock regulations which may limit a stockholder s ability to buy and sell our stock. The Financial Industry Regulatory Authority sales practice requirements may also limit a stockholder s ability to buy and sell our stock.

Full 10-K form ▸

1074447--3/18/2010--MANAS_PETROLEUM_Corp