1074929--4/15/2010--MAVERICK_MINERALS

related topics

{interest, director, officer}

{stock, price, share}

{gas, price, oil}

{cost, contract, operation}

{debt, indebtedness, cash}

{regulation, government, change}

{loan, real, estate}

{personnel, key, retain}

{provision, law, control}

{investment, property, distribution}

{acquisition, growth, future}

We are an exploration stage company implementing a new business plan. We have had negative cash flows from operations and if we are not able to obtain further financing, our business operations may fail. We currently do not generate revenues, and as a result, we face a high risk of business failure. Our independent auditors have expressed substantial doubt about our ability to continue as a going concern, which may hinder our ability to obtain future financing. If we are required for any reason to repay our outstanding secured convertible debentures or any other indebtedness, we would be required to deplete our working capital, if available, or raise additional funds. Market conditions or operation impediments may hinder our access to oil and gas markets or delay our potential production. The potential profitability of oil and gas ventures depends upon factors beyond the control of our company. Oil and gas operations are subject to comprehensive regulation, which may cause substantial delays or require capital outlays in excess of those anticipated causing an adverse effect on our company. Exploratory drilling involves many risks and we may become liable for pollution or other liabilities, which may have an adverse effect on our financial position. Shortages of rigs, equipment, supplies and personnel could delay or otherwise adversely affect our cost of operations or our ability to operate according to our business plans. The geographic concentration of all of our properties in Texas subjects us to an increased risk of loss of revenue or curtailment of production from factors affecting those areas. The oil and gas exploration and production industry is historically a cyclical industry and market fluctuations in the prices of oil and gas could adversely affect our business. Our interests are held in the form of leases that we may be unable to retain. Any change to government regulation/administrative practices may have a negative impact on our ability to operate and our profitability. If we are unable to hire and retain key personnel, we may not be able to implement our plan of operation and our business may fail. Because our executive officers do not have formal training specific to oil and gas exploration, there is a higher risk our business will fail. Our executive officers have other business interests, and as a result, they may not be willing or able to devote a sufficient amount of time to our business operations, thereby limiting the success of our company. If we issue additional shares in the future, it will result in the dilution of our existing shareholders. Our common stock is illiquid and shareholders may be unable to sell their shares. Penny stock rules will limit the ability of our stockholders to sell their stock. The Financial Industry Regulatory Authority, or FINRA, has adopted sales practice requirements which may also limit a shareholder s ability to buy and sell our stock. Because of the early stage of development and the nature of our business, our securities are considered highly speculative. We do not intend to pay dividends on any investment in the shares of stock of our company. Our by-laws contain provisions indemnifying our officers and directors. Our by-laws do not contain anti-takeover provisions and thus our management and directors may change if there is a take-over of our company. Because most of our directors and officers are residents of other countries other than the United States, investors may find it difficult to enforce, within the United States, any judgments obtained against our directors and officers.

Full 10-K form ▸

1074929--4/15/2010--MAVERICK_MINERALS_CORP