1343254--12/14/2009--Western_Standard_Energy

related topics

{gas, price, oil}

{stock, price, share}

{interest, director, officer}

{loan, real, estate}

{loss, insurance, financial}

{acquisition, growth, future}

{cost, regulation, environmental}

{regulation, change, law}

{competitive, industry, competition}

{personnel, key, retain}

{control, financial, internal}

Risks Associated with our Company Because we may never earn revenues from our operations, our business may fail and then investors may lose all of their investment in our company. We have had a history of losses and no revenue, which raise substantial doubt about our ability to continue as a going concern. Risks Relating to our Business and the Oil and Gas Industry We are a new entrant into the oil and gas industry without a profitable or long operating history. We do not have any income producing oil and gas properties and we have limited financial resources. There is no means by which investors can evaluate our potential for success and there is no assurance that we will ever operate profitably. Our proposed operations will require significant capital expenditures for which we may not have sufficient funding and if we do obtain additional financing, our existing shareholders may suffer substantial dilution. Our exploratory drilling operations likely will not be successful, our business may fail and investors may lose their entire investment in our company. Exploratory drilling involves many risks and we may become liable for pollution or other liabilities, which may have an adverse effect on our financial position. Shortages of rigs, equipment, supplies and personnel could delay or otherwise adversely affect our cost of operations or our ability to operate according to our business plans. Our future performance is dependent upon our ability to identify, acquire and develop oil and gas properties. If we fail to do this well, our business may fail. Our business may suffer if we do not attract and retain talented personnel. Our management team does not have extensive experience in public company matters, which could impair our ability to comply with legal and regulatory requirements. The oil and gas industry is highly competitive, and we may not have sufficient resources to compete effectively. Complying with environmental and other government regulations could be costly and could negatively impact our production. The oil and gas exploration and production industry historically is a cyclical industry and market fluctuations in the prices of oil and gas could adversely affect our business. The recent decreases in oil and gas prices have made our exploration program less viable and we have temporarily put our exploration program on hold. If the situation does not improve before we run out of money, we will likely go out of business and investors will lose their entire investment in our company. We may not identify all of liabilities associated with our property interests or obtain protection from sellers against them, which could cause us to incur losses. Title deficiencies could render the leases that we may acquire in the future worthless which could have adverse effects on our financial condition or results of operations. Risks Associated with Our Common Stock If we issue additional shares in the future, it will result in the dilution of our existing shareholders. Trading on the OTC Bulletin Board may be volatile and sporadic, which could depress the market price of our common stock and make it difficult for our stockholders to resell their shares. Our stock is a penny stock. Trading of our stock may be restricted by the SEC s penny stock regulations and FINRA s sales practice requirements, which may limit a stockholder s ability to buy and sell our stock. FINRA sales practice requirements may also limit a stockholder s ability to buy and sell our stock.

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1343254--12/14/2009--Western_Standard_Energy_Corp.