1287900--6/29/2007--RANCHER_ENERGY

related topics

{gas, price, oil}

{stock, price, share}

{cost, regulation, environmental}

{personnel, key, retain}

{acquisition, growth, future}

{control, financial, internal}

{operation, natural, condition}

{debt, indebtedness, cash}

{loss, insurance, financial}

{regulation, change, law}

Risks Related to our Industry, Business, and Strategy We may not be able to develop the three Powder River Basin properties as we anticipate. Our production is dependent upon sufficient amounts of CO and will decline if our access to sufficient amounts of CO If we are unable to obtain additional debt financing our business plans will not be achievable Our development and tertiary recovery 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 oil reserves. We have a limited operating history in the oil business, and we cannot predict our future operations with any certainty. Oil prices are volatile and a decline in oil prices can significantly affect our financial results and impede our growth. We have incurred losses from operations in the past and expect to do so in the future. We could be adversely impacted by changes in the oil market. We may be unable to develop additional reserves. We are dependent on our management team and the loss of any of these individuals would harm our business. Oil operations are inherently risky. We are subject to extensive government regulations. Government regulation and environmental risks could increase our costs. The properties we have acquired are located in the Powder River Basin in the Rocky Mountains, making us vulnerable to risks associated with operating in one major geographic area. Seasonal weather conditions adversely affect our ability to conduct drilling activities and tertiary recovery operations in some of the areas where we operate. Competition in the oil gas industry is intense, which may adversely affect our ability to succeed. Oil prices may be impacted adversely by new taxes. Shortages of equipment, supplies, and personnel, and delays in construction of the CO pipeline, construction of surface facilities, and delivery of CO could delay or otherwise adversely affect our cost of operations or our ability to operate according to our business plans. Shortages of transportation services and processing facilities may result in our receiving a discount in the price we receive for oil sales or may adversely affect our ability to sell our oil. Estimating our reserves, production and future net cash flow is difficult to do with any certainty. Risks Related to our Common Stock The trading market for our common stock is relatively new, so investors may have difficulty selling significant number of shares of our stock, and our stock price may decline. Sales of a substantial number of shares in the future may result in significant downward pressure on the price of our common stock and could affect the ability of our stockholders to realize the current trading price of our common stock. Our stock price and trading volume may be volatile, which could result in losses for our stockholders. There are risks associated with forward-looking statements made by us and actual results may differ. NASD sales practice requirements limit a stockholders' ability to buy and sell 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. If we are required to continue to make penalty payments with respect to registration and other obligations incurred as part of our recent private placement financing, such payments could have an adverse effect on our financial condition and liquidity and operating plans.

Full 10-K form ▸

1287900--6/29/2007--RANCHER_ENERGY_CORP.