1357642--6/1/2010--SENTRY_PETROLEUM

related topics

{gas, price, oil}

{interest, director, officer}

{stock, price, share}

{cost, contract, operation}

{operation, international, foreign}

{loan, real, estate}

{acquisition, growth, future}

{cost, regulation, environmental}

{debt, indebtedness, cash}

{regulation, change, law}

{property, intellectual, protect}

Risks associated with our business We were incorporated on February 23, 2006 and have a limited history of operations making it difficult to evaluate our current value and chance of success. Oil and gas exploration is very competitive and we will not be able to effectively compete with other companies in procuring services required to complete our plan of operations. We have limited financial resources and will have to raise additional funds to expand our business. To date we have held preliminary discussions related to potential future funding but there can be no certainty that market conditions will enable us to raise the funds required. Failure to raise additional funds may result in the failure of our business. We have acquired interests in four Authority to Prospect (ATP) properties, however, we may be unable to meet the terms and conditions of the permit. Failure to meet the prescribed terms and conditions may result in the loss or abandonment of the permit resulting in the inability to carry out our plan of operations. Based upon our financial position our auditor has expressed substantial doubt about our ability to continue as a going concern. There is no assurance that we will discover hydrocarbons on any of our oil and gas interests. Failure to discover hydrocarbons will make it difficult for us to remain as a going concern. Geological conditions are variable and unpredictable and heighten exploration risk. The marketing and sale of petroleum products is subject to government regulation that may impair our ability to sell hydrocarbons or limit the prices available. Changes to government regulation or laws in the jurisdictions in which we may be operating might result in a discovery becoming uneconomical leading to financial losses. The price for oil and gas is volatile and determined by factors beyond our control. Failure to accurately forecast prices may result in financial losses. We are subject to local laws and regulations that are subject to change, including tax and land title claims. Any material change could have an adverse effect on our business and our ability to operate. We are subject to work program commitments, failure to complete on these commitments may result in exploration permits being surrendered. We may participate in permits or licenses with industry partners with access to greater resources to meet their joint venture capital commitments. If we are unable to meet our commitments, the other joint venture participants may assume some or all of our deficiency and thereby assume a portion of our interest in any production from the joint venture area. We presently do not carry liability or title insurance and do not plan to secure any in the future. The lack of insurance makes us vulnerable to excessive potential claims and loss of title. Our business will be subject to laws that control the discharge of materials into the environment and we may be liable for damages and the costs of removing hydrocarbon spills for which we are held responsible. We will conduct a portion of our business in foreign currencies, the value of which fluctuates against the U.S. currency. We have no history of earnings and there is no assurance that if we do, that dividends will be declared. Broker-dealers may be discouraged from effecting transactions in our shares of Common Stock because they are considered penny stocks and are subject to the penny stock rules. Patents, Licenses, Trademarks, Franchises, Concessions, or Royalty Agreements. (c) Reports to security holders

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1357642--6/1/2010--SENTRY_PETROLEUM_LTD.