1112064--4/15/2010--PROVIDENCE_RESOURCES

related topics

{control, financial, internal}

{gas, price, oil}

{stock, price, share}

{cost, regulation, environmental}

{financial, litigation, operation}

{acquisition, growth, future}

{cost, operation, labor}

Risks Related to the Company s Business The Company has a history of operating losses and such losses may continue in the future. The Company has a history of uncertainty about continuing as a going concern. The Company has a limited operating history as an oil and gas exploration company. The Company cannot represent that it will be successful in continuing operations. The outcome of litigation in which we is unpredictable and an adverse decision in any such matter could have a material adverse affect on our financial position and results of operations. Risks Related to the Oil and Gas Industry Oil and natural gas drilling and producing operations involve risks which could result in net losses. The Company is subject to federal, state and local laws and regulations which could create liability for personal injuries, property damage, and environmental damages. Climate change legislation or regulations restricting emissions of greenhouse gases could result in increased operating costs and The results of the Company s current operations depend on the exploration and operational efforts of third parties. Since oil and natural gas prices are volatile, any substantial decrease in prices could cause the Company to continue to operate at a loss even in the event that we are successful in producing oil and gas. Risks Related to the Company s Stock The Company may require additional capital funding. The market for our stock is limited and our stock price may be volatile. The Company does not pay cash dividends. We incur significant expenses as a result of the Sarbanes-Oxley Act of 2002, which expenses may continue to negatively impact our financial performance. Our internal controls over financial reporting may not be considered effective in the future , which could result in a loss of investor confidence in our financial reports and in turn have an adverse effect on our stock price. The Company s shareholders may face significant restrictions on their stock.

Full 10-K form ▸

1112064--4/15/2010--PROVIDENCE_RESOURCES_INC