1406243--10/10/2008--Alco_Energy

related topics

{gas, price, oil}

{stock, price, share}

{interest, director, officer}

{cost, contract, operation}

{acquisition, growth, future}

{system, service, information}

{regulation, change, law}

{control, financial, internal}

{regulation, government, change}

{stock, price, operating}

We have a limited operating history and if we are not successful in continuing to grow the business, then we may have to scale back or even cease ongoing business operations. If we are unable to obtain additional funding business operations will be harmed and if we do obtain additional financing then existing shareholders may suffer substantial dilution. Because we are small and do not have much capital, we may have to limit exploration activity which may result in a loss of your investment. If we are unable to continue to retain the services of Messer s Bill Akrivos, William Goodwin, and Charles Murchison or if we are unable to successfully recruit qualified managerial and field personnel having experience in oil and gas exploration, we may not be able to continue operations. As future properties would be in the exploration stage, there can be no assurance that we will establish commercial discoveries on the properties. We are a new entrant into the oil and gas exploration and development industry without profitable operating history. Drilling operations may not be successful. Prospects that we decide to drill may not yield natural gas or oil in commercially viable quantities. If production results from operations, we are dependent upon transportation and storage services provided by third parties. The potential profitability of oil and gas ventures depends upon factors beyond the control of our company. The oil and gas industry is highly competitive and there is no assurance that we will be successful in acquiring new leases. 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. Exploration activities are subject to certain environmental regulations which may prevent or delay the commencement or continuance of operations. Exploratory drilling involves many risks and we may become liable for pollution or other liabilities which may have an adverse effect on financial position. Any change to government regulation/administrative practices may have a negative impact on the ability to operate and profitability. Because our auditors have expressed substantial doubt about our ability to continue as a going concern, we may find it difficult to obtain additional financing. Risks Related to Our Stock The OTC Bulletin Board is a quotation system, not an issuer listing service, market or exchange. Therefore, buying and selling stock on the OTC Bulletin Board is not as efficient as buying and selling stock through an exchange. As a result, it may be difficult for you to sell your common stock or you may not be able to sell your common stock for an optimum trading price. We are subject to the penny stock rules and these rules may adversely affect trading in our common stock. Our stock price may be volatile, which may result in losses to our stockholders. We will incur increased costs and compliance risks as a result of becoming a public company. If we fail to maintain the adequacy of our internal controls, our ability to provide accurate financial statements and comply with the requirements of the Sarbanes-Oxley Act of 2002 could be impaired, which could cause our stock price to decrease substantially. U.S. investors may experience difficulties in attempting to effect service of process and to enforce judgments based upon U.S. federal securities laws against the company and its sole non-U.S. resident officer and director. We do not expect to pay dividends in the foreseeable future. We have the right to issue additional common stock without the consent of shareholders. This would have the effect of diluting your ownership in the company and could decrease the value of your stock.

Full 10-K form ▸

1406243--10/10/2008--Alco_Energy_Corp.