1112064--4/7/2008--PROVIDENCE_RESOURCES_INC

related topics
{gas, price, oil}
{stock, price, share}
{control, financial, internal}
{acquisition, growth, future}
{regulation, change, law}
{cost, regulation, environmental}
{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 limited operating history as an oil and gas exploration company. The Company has a history of uncertainty about continuing as a going concern. The Company cannot represent that it will be successful in continuing operations. Risks Related to the Oil and Gas Industry Oil and natural gas drilling and producing operations involve various 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. Shortages of oil field equipment, services and qualified personnel could reduce the Company s profit margin, cash flow and operating results. The results of the Company s operations depend on the exploration and operational efforts of Miller Energy, LLC, Harding Company, TRNCO Petroleum Corporation, Dawson Geophysical, Fairfield Industries, and certain consultants, all of whom are third parties. Oil and natural gas prices are volatile, and any substantial decrease in prices could cause the Company to continue to operate at a loss in the event that we are successful in producing oil and gas. Risks Related to the Company s Stock The Company will 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 being quoted on the Over the Counter Bulletin Board, which may 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 ▸

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