1131072--3/19/2007--TETON_ENERGY

related topics

{gas, price, oil}

{debt, indebtedness, cash}

{acquisition, growth, future}

{loss, insurance, financial}

{stock, price, operating}

{stock, price, share}

{operation, natural, condition}

{personnel, key, retain}

{competitive, industry, competition}

Our business involves numerous operating hazards for which our insurance and other contractual rights may not adequately cover our potential losses. Acquisitions are a part of our business strategy and are subject to the risks and uncertainties of evaluating recoverable reserves and potential liabilities. Our ability to complete acquisitions could be affected by competition with other companies and our ability to obtain financing or regulatory approvals. Our acquisitions may pose integration risks and other difficulties. Substantial acquisitions or other transactions could require significant external capital and could change our risk and property profile. Competitive industry conditions may negatively affect our ability to conduct operations. There is currently a shortage of available drilling rigs and equipment which could cause us to experience higher costs and delays that could adversely affect our operations. We have limited operating control over our properties. We have no long-term contracts to sell oil and gas. Oil and gas prices fluctuate widely, and low prices for an extended period of time are likely to have a material adverse impact on our business, results of operations and financial condition. Our use of oil and natural gas price hedging contracts involves credit risk and may limit future revenues from price increases and result in significant fluctuations in our net income and shareholders equity. The marketability of our production depends mostly upon the availability, proximity and capacity of gas gathering systems, pipelines and processing facilities, which are owned by third parties. Our credit facility has substantial restrictions and financial covenants and we may have difficulty obtaining additional credit, which could adversely affect our operations. Our debt level and the covenants in the agreements governing our debt could negatively impact our financial condition, results of operations and business prospects. The instruments governing our indebtedness contain various covenants limiting the discretion of our management in operating our business. Our development and exploration operations require substantial capital and we may be unable to obtain needed capital or financing on satisfactory terms, which could lead to a loss of properties and a decline in our natural gas and oil reserves. Reserve estimates depend on many assumptions that may turn out to be inaccurate. Any material inaccuracies in these reserve estimates or underlying assumptions will materially affect the quantities and present value of our reserves. Seasonal weather conditions and lease stipulations can adversely affect the conduct of drilling activities on our properties. Unless we replace our oil and natural gas reserves, our level of reserves and production will decline, which would adversely affect our cash flows and income. The loss of key personnel could adversely affect our business. Rising inflation and price increases could have a negative effect on our value and increase our costs. Our inability to meet operating and financial obligations could adversely affect our business. Risks Relating To Our Common Stock Our stock price and trading volume may be volatile, which could result in losses for our stockholders. Our insiders beneficially own a significant portion of our stock. We do not expect to pay dividends in the foreseeable future. As a result, holders of our common stock must rely on stock appreciation for any return on their investment.

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1131072--3/19/2007--TETON_ENERGY_CORP