1083866--3/25/2010--EDEN_ENERGY

related topics

{stock, price, share}

{interest, director, officer}

{gas, price, oil}

{cost, contract, operation}

{acquisition, growth, future}

{cost, regulation, environmental}

{provision, law, control}

{regulation, government, change}

{control, financial, internal}

{competitive, industry, competition}

We have had negative cash flows from operations If we are unable to obtain financing in the amounts and on terms deemed acceptable to us, we may be unable to continue our business and as a result may be required to scale back or cease operations for our business, the result of which would be that our stockholders would lose some or all of their investment. A decline in the price of our common stock could affect our ability to raise further working capital and adversely impact our operations. We have a history of losses and fluctuating operating results. We expect to continue to incur operating losses and negative cash flow until we receive significant commercial production from our properties We have a limited operating history and if we are not successful in continuing to grow our business, then we may have to scale back or even cease our ongoing business operations. 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. Trading in our common shares on the OTC Bulletin Board is limited and sporadic making it difficult for our shareholders to sell their shares or liquidate their investments. Because of the early stage of development and the nature of our business, our securities are considered highly speculative. As our properties are in the exploration and early development stage there can be no assurance that we will establish commercial discoveries and/or profitable production programs on these properties. 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 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 or continuance of our operations. We believe that our operations comply, in all material respects, with all applicable environmental regulations. Exploratory and development 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. 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. As a result of a majority 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 company or our directors and officers.

Full 10-K form ▸

1083866--3/25/2010--EDEN_ENERGY_CORP