1080399--8/13/2008--ROYALITE_PETROLEUM_CO

related topics

{gas, price, oil}

{stock, price, share}

{loss, insurance, financial}

{competitive, industry, competition}

{acquisition, growth, future}

{cost, regulation, environmental}

{personnel, key, retain}

{investment, property, distribution}

Risks Relating to the Company If we do not obtain additional financing, our business will fail. If we never generate operating profit, then our business will fail. If we are unable to hire and retain key personnel, then we may not be able to implement our business plan. The quotation price of our common stock may be volatile, with the result that an investor may not be able to sell any shares acquired at a price equal to or greater than the price paid by the investor. We may conduct future offerings of our equity securities in the future, in which case investors shareholdings will be diluted. Because our stock is a penny stock, stockholders will be more limited in their ability to sell their stock. Risks Relating to Our Oil and Gas Operations We have no proven reserves or current production and may never have any. Our oil and gas operations are in the exploration stage with a limited operating history, which may hinder our ability to successfully meet our objectives. The successful implementation of our business plan is subject to risks inherent in the oil and gas business, which if not adequately managed could result in additional losses. Our future performance is dependent upon our ability to identify, acquire and develop oil and gas properties, the failure of which could result in under use of capital and losses. The oil and gas exploration and production industry historically is a cyclical industry and market fluctuations in the prices of oil and gas could adversely affect our business. Our ability to produce oil and gas from our properties may be adversely affected by a number of factors outside of our control. The unavailability or high cost of drilling rigs, equipment, supplies, personnel and oil field services could adversely affect our ability to execute our exploration and development plans on a timely basis and within our budget. We may be unable to retain our leases and working interests in leases, which would result in significant harm to our business. Title deficiencies could render our leases worthless. If we fail to maintain adequate insurance, our business could be materially and adversely affected. Complying with environmental and other government regulations could be costly and could negatively impact prospective production. The oil and gas industry is highly competitive, and we may not have sufficient resources to compete effectively.

Full 10-K form ▸

1080399--8/13/2008--ROYALITE_PETROLEUM_CO_INC.