1322866--3/27/2007--Kodiak_Oil_&_Gas

related topics

{gas, price, oil}

{condition, economic, financial}

{control, financial, internal}

{loss, insurance, financial}

{stock, price, share}

{stock, price, operating}

{cost, regulation, environmental}

{provision, law, control}

{interest, director, officer}

{investment, property, distribution}

{personnel, key, retain}

{acquisition, growth, future}

{system, service, information}

{cost, contract, operation}

{loan, real, estate}

{property, intellectual, protect}

Risks Relating to the Company We will require significant additional capital, which may not be available to us on favorable terms, or at all. We have historically incurred losses and expect to incur additional losses in the future. It is difficult for us to forecast when we will achieve profitability, if ever. We may not be able to successfully drill wells that can produce oil or natural gas in commercially viable quantities. The actual quantities and present value of our proved reserves may be lower than we have estimated. Our interests are held in the form of leases that we may be unable to retain. We have limited control over activities in properties we do not operate, which could reduce our production and revenues. We have a limited experience as an operator of wells. The title to our properties may be defective. Our officers and directors may become subject to conflicts of interest. We depend on our current management team, the loss of any member of which could delay the further implementation of our business plan or cause business failure. Oil and natural gas reserves decline once a property becomes productive, and we may need to find new reserves to sustain revenue growth. We will need to make substantial financial and man-power investments in order to assess our internal controls over financial reporting and our internal controls over financial reporting may be found to be deficient. Our focus on exploration activities exposes us to greater risks than are generally encountered in later-stage oil and natural gas property development businesses. We rely on independent experts and technical or operational service providers over whom we may have limited control. We have not insured and cannot fully insure against all risks related to our operations, which could result in substantial claims for which we are underinsured or uninsured. Properties that we acquire may not produce oil or natural gas as projected, and we may be unable to determine reserve potential, identify liabilities associated with the properties or obtain protection from sellers against them, which could cause us to incur losses. Our operations in North Dakota, Montana and Wyoming could be adversely affected by abnormally poor weather conditions. Market conditions or operational impediments may hinder our access to oil and natural gas markets or delay our production. Risks Relating to Our Industry The oil and natural gas industry is subject to significant competition, which may increase costs or otherwise adversely affect our ability to compete. Oil and natural gas are commodities subject to price volatility based on many factors outside the control of producers, and low prices may make properties uneconomic for future production. Exploration and drilling operations are subject to significant environmental regulation, which may increase costs or limit our ability to develop our properties. A substantial or extended decline in oil and natural gas prices could reduce our future revenue and earnings. Our operations and demand for our products are affected by seasonal factors, which may lead to fluctuations in our operating results. Conducting operations in the oil and natural gas industry subjects us to complex laws and regulations that can have a material adverse effect on the cost, manner and feasibility of doing business. The unavailability or high cost of drilling rigs, equipment, supplies, personnel and oilfield services could adversely affect our cost of operations or our ability to execute our plans on a timely basis. Risks Relating to Our Common Stock Our common stock has a limited trading history and may experience price volatility. We have not paid cash dividends on our common stock and do not anticipate paying any dividends on our common stock in the foreseeable future. Our constating documents permit us to issue an unlimited number of shares without shareholder approval.

Full 10-K form ▸

1322866--3/27/2007--Kodiak_Oil_&_Gas_Corp