1086319--3/3/2010--GASCO_ENERGY

related topics

{gas, price, oil}

{stock, price, share}

{regulation, change, law}

{loss, insurance, financial}

{debt, indebtedness, cash}

{cost, regulation, environmental}

{cost, contract, operation}

{provision, law, control}

{personnel, key, retain}

{operation, natural, condition}

{interest, director, officer}

{capital, credit, financial}

{cost, operation, labor}

{stock, price, operating}

{acquisition, growth, future}

We may not be able to maintain adequate cash flow from operations or obtain adequate financing to grow our operations. Lower oil and natural gas prices could negatively impact our ability to borrow. Additionally, availability under our revolving credit facility is based on a borrowing base which is subject to redetermination by our lenders. If our borrowing base is reduced, we may be required to repay amounts outstanding under our revolving credit facility. Our revolving credit facility imposes restrictions on us that may affect our ability to successfully operate our business. A failure by the gatherer of our natural gas to perform its obligations under our gas gathering agreement may negatively affect our ability to deliver our natural gas production for sale. Pipeline constraints may limit our ability to sell production and may negatively affect the price at which we sell our production. Our estimates of proved reserves have been prepared under new SEC rules that went into effect for fiscal years ending on or after December 31, 2009, which may make comparisons to prior periods difficult and could limit our ability to book additional proved undeveloped reserves in the future. Our proved reserves are estimates and depend on many assumptions. Any material inaccuracies in these assumptions could cause the quantity and value of our oil and gas reserves, and our revenue, profitability, and cash flow, to be materially different from our estimates. Lower oil and gas prices and other factors have resulted, and in the future may result, in ceiling test write-downs and other impairments of our asset carrying values. The development of oil and gas properties involves substantial risks that may materially and adversely affect us. Delays in obtaining drilling permits could have a materially adverse effect on our ability to develop our properties in a timely manner. Our drilling operations may be delayed or revised unless we receive approval of our Environmental Impact Statement. We may have difficulty managing any growth in our business Our competitors may have greater resources which could enable them to pay a higher price for properties and to better withstand periods of low market prices for hydrocarbons. We may suffer losses or incur liability for events that we have, or that the operator of a property has, chosen not to insure against. We may incur losses as a result of title deficiencies in the properties in which we invest Our ability to market the oil and gas that we produce is essential to our business. Environmental costs and liabilities and changing environmental regulation could materially affect our cash flow. Our operations may incur substantial liabilities to comply with climate change legislation and regulatory initiatives. We are subject to complex governmental regulations which may adversely affect the cost of our business. Because our reserves and production are concentrated in a small number of properties, production problems or significant changes in reserve estimates related to any property could have a material impact on our business. Our operations may be interrupted by severe weather or drilling restrictions. Shortages of supplies, equipment and personnel may adversely affect our operations. Hedging our production may result in losses. Our success depends on our key management personnel, the loss of any of whom could disrupt our business. Our directors are engaged in other businesses which may result in conflicts of interest. It may be difficult to enforce judgments predicated on the federal securities laws on some of our board members who are not U.S. residents. Certain U.S. federal income tax deductions currently available with respect to oil and gas exploration and development may be eliminated as a result of future legislation. The adoption of climate change legislation by Congress could result in increased operating costs and reduced demand for the oil and natural gas we produce. The adoption of derivatives legislation by Congress could have an adverse impact on our ability to hedge risks associated with our business. Federal and state legislation and regulatory initiatives relating to hydraulic fracturing could result in increased costs and additional operating restrictions or delays. Risks Related to Our Capital Stock If we cannot meet the NYSE AMEX s continued listing requirements, the NYSE Amex may delist our common stock, which would have an adverse impact on the liquidity and market price of our common stock. Our common stock has experienced, and may continue to experience, price volatility and a low trading volume. Shares eligible for future sale may cause the market price for our common stock to drop significantly, even if our business is doing well. We have not previously paid dividends on our common stock and we do not anticipate doing so in the foreseeable future. We have anti-takeover provisions in our certificate of incorporation and by-laws that may discourage a change of control.

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1086319--3/3/2010--GASCO_ENERGY_INC