1081183--12/3/2010--NATION_ENERGY

related topics

{gas, price, oil}

{stock, price, share}

{interest, director, officer}

{acquisition, growth, future}

{cost, contract, operation}

{operation, international, foreign}

{provision, law, control}

{loss, insurance, financial}

{regulation, government, change}

We have had negative cash flows from operations and if we are not able to obtain further financing, our business operations may fail. Because of the early stage of development and the nature of our business, our securities are considered highly speculative. A decline in the price of our common stock could affect our ability to raise further working capital and adversely impact our operations. Our accounts are subject to currency fluctuations which may materially affect our financial position and results of operations. We may not be able to manage the significant strains that future growth may place on our administration infrastructure, systems and controls. The loss of John Hislop would have an adverse impact on future development and could impair our ability to succeed. Our management currently engages in other oil and gas businesses and, as a result, conflicts could arise. Trading of our stock may be restricted by the SEC s Penny Stock regulations which may limit a stockholder s ability to buy and sell our stock. The Financial Industry Regulatory Authority, or FINRA, has adopted sales practice requirements which may also limit a stockholder s ability to buy and sell our stock. Since our shares are thinly traded, and trading on the OTC Bulletin Board may be limited and sporadic because it is not an exchange, stockholders may have difficulty reselling their shares or liquidating their investments. Our By-laws contain provisions indemnifying our officers and directors against all costs, charges and expenses incurred by them. Investors interests in our company will be diluted and investors may suffer dilution in their net book value per share if we issue additional shares or raise funds through the sale of equity securities. Our by-laws do not contain anti-takeover provisions which could result in a change of our management and directors if there is a take-over of our company. Since our director and officer is not a resident of the United States, investors may find it difficult to enforce, within the United States, any judgments obtained against our company or our director and officer. As our properties were primarily in the exploration and, development stage there can be no assurance that we will establish further commercial discoveries. A decline in oil and natural gas prices would have an adverse impact on our operations. Continued financial success depends on our ability to replace our reserves in the future. Reserve estimates depend on many assumptions that may turn out to be inaccurate. The potential profitability of oil and gas ventures depends upon factors beyond the control of our company. Competition in the oil and gas industry is highly competitive and there is no assurance that we will be successful in acquiring desirable oil and gas leases. The marketability of natural resources will be affected by numerous factors beyond our control which may result in us not receiving an adequate return on invested capital to be profitable or viable. 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. Exploration and production activities are subject to certain environmental regulations which may prevent or delay the commencement of our operations. 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. Any change to government regulation/administrative practices may have a negative impact on our ability to operate and our profitability.

Full 10-K form ▸

1081183--12/3/2010--NATION_ENERGY_INC