1343601--11/15/2010--WEST_CANYON_ENERGY

related topics

{stock, price, share}

{gas, price, oil}

{interest, director, officer}

{cost, contract, operation}

{control, financial, internal}

{provision, law, control}

{regulation, government, change}

{acquisition, growth, future}

Risks Related to Our Operations 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 a history of losses and have negative cash flows from operations, which raises substantial doubt about our ability to continue as a going concern. A decline in the price of our common stock could affect our ability to raise further working capital and adversely impact our operations. We have a limited operating history and if we are not successful in continuing to grow our business, then we may have to scale back or even cease our ongoing business operations. Because of the early stage of development and the nature of our business, our securities are considered highly speculative. Nature of oil and gas exploration and development involves many risks that we may not be able to overcome. The marketability of natural resources will be affected by numerous factors beyond our control which may result in us not receiving an adequate return on invested capital to be profitable or viable. Oil and gas operations are subject to comprehensive regulation which may cause substantial delays or require capital outlays in excess of those anticipated causing an adverse effect on 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. Any change to government regulation/administrative practices may have a negative impact on our ability to operate and our profitability. All or a portion of our interest in our properties may be lost if we are unable to obtain significant additional financing, as we are required to make significant expenditures on the exploration and development of our properties. We will require substantial funds to enable us to decide whether our non-producing properties contain commercial oil and gas deposits and whether they should be brought into production, and if we cannot raise the necessary funds we may never be able to realize the potential of these properties. We have licenses in respect of our properties, but our properties may be subject to prior unregistered agreements, or transfers which have not been recorded or detected through title searches, and are subject to a governmental right of participation, resulting in a possible claim against any future revenues generated by such properties. The majority of our projects are located in Colombia where oil and gas exploration activities may be affected in varying degrees by political and government regulations which could have a negative impact on our ability to continue our operations. The potential profitability of oil and gas ventures depends upon factors beyond the control of our company. Competition in the oil and gas industry is highly competitive and there is no assurance that we will be successful in acquiring licenses and permits. Risks Related to Our Common Stock Trading of our stock may be restricted by the SEC s Penny Stock regulations which may limit a stockholder's ability to buy and sell our stock Financial Industry Regulatory Authority ( FINRA ) sales practice requirements may also limit a stockholder s ability to buy and sell our stock. Trading in our common stock on the OTC Bulletin Board is limited and sporadic making it difficult for our shareholders to sell their shares or liquidate their investments Because of the early stage of development and the nature of our business, our securities are considered highly speculative. We do not intend to pay dividends on any investment in the shares of stock of our company. Risks Related to Our Company Our By-laws contain provisions indemnifying our officers and directors against all costs, charges and expenses incurred by them Investors' interests in our company will be diluted and investors may suffer dilution in their net book value per share if we issue additional shares or raise funds through the sale of equity securities Our By-laws do not contain anti-takeover provisions which could result in a change of our management and directors if there is a take-over of our company

Full 10-K form ▸

1343601--11/15/2010--WEST_CANYON_ENERGY_CORP.