1216774--4/15/2008--SUPERIOR_OIL_&_GAS

related topics

{gas, price, oil}

{stock, price, share}

{cost, regulation, environmental}

{loss, insurance, financial}

{control, financial, internal}

{provision, law, control}

{debt, indebtedness, cash}

General Risks Related to Our Company We Have a Limited Operating History. We Have a History of Losses and May Need Additional Financing. We May Not Be Able to Borrow Funds. Risks Relating to the Oil and Natural Gas Industry and Our Business A substantial or extended decline in oil and natural gas prices may adversely affect our business, financial condition or results of operations and our ability to meet our capital expenditure obligations and financial commitments. A substantial percentage of our properties are undeveloped; therefore the risk associated with our success is greater than would be the case if the majority of our properties were categorized as proved developed producing. Drilling for and producing oil and natural gas are high risk activities with many uncertainties that could adversely affect our business, financial condition or results of operations. If our assessments of recently purchased properties are materially inaccurate, it could have significant impact on future operations and earnings. If oil and natural gas prices decrease, we may be required to take write-downs of the carrying values of our oil and natural gas properties, potentially negatively impacting the trading value of our securities. 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. Prospects that we decide to drill may not yield oil or natural gas in commercially viable quantities. We may incur substantial losses and be subject to substantial liability claims as a result of our oil and natural gas operations. We are subject to complex laws that can affect the cost, manner or feasibility of doing business. Our operations may incur substantial liabilities to comply with the environmental laws and regulations. Unless we replace our oil and natural gas reserves, our reserves and production will decline, which would adversely affect our cash flows and income. The unavailability or high cost of drilling rigs, equipment, supplies, personnel and oil field services could adversely affect our ability to execute on a timely basis our exploration and development plans within our budget. If our access to markets is restricted, it could negatively impact our production, our income and ultimately our ability to retain our leases. Competition in the oil and natural gas industry is intense, which may adversely affect our ability to compete. Risks Relating to Our Common Stock We have no plans to pay dividends on our common stock. You may not receive funds without selling your stock. Provisions under Nevada law could delay or prevent a change in control of our company, which could adversely affect the price of our common stock. Our Common Stock Is Subject To "Penny Stock" Restrictions Under Federal Securities Laws, Which Could Reduce The Liquidity Of Our Common Stock.

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1216774--4/15/2008--SUPERIOR_OIL_&_GAS_CO