21239--3/28/2007--COASTAL_CARIBBEAN_OILS_&_MINERALS

related topics

{gas, price, oil}

{stock, price, share}

{loss, insurance, financial}

{competitive, industry, competition}

{investment, property, distribution}

{interest, director, officer}

{acquisition, growth, future}

{cost, operation, labor}

{cost, regulation, environmental}

An investment in our securities involves a high degree of risk. You should carefully consider the following risk factors before you decide to buy our securities. Any of these factors could cause the value of your investment to decline significantly or become worthless. If you decide to buy our securities, you should be able to afford a complete loss of your investment. Risks Relating to an Investment in Our Stock At this stage of our business operations, even with our good faith efforts, investors have a high probability of losing their investment. We may need additional capital in the future to finance our planned growth, which we may not be able to raise or it may only be available on terms unfavorable to us or our stockholders, which may result in our inability to fund our working capital requirements and harm our operational results. We are subject to the penny stock rules and these rules may adversely effect trading in our common shares. We may incur substantial write-downs of the carrying value of our gas and oil properties, which would adversely impact our earnings. Competition in our industry is intense. We are very small and have an extremely limited operating history as compared to the vast majority of our competitors, and we may not be able to compete effectively. Drilling wells is a high risk activity, often involving significant costs that may be more than our estimates, and may not result in any addition to our production or reserves. Any material inaccuracies in drilling costs, estimates or underlying assumptions will materially affect our business. The natural gas and oil business involves numerous uncertainties and operating risks that can prevent us from realizing profits and can cause substantial losses. The unavailability or high cost of drilling rigs, equipment, supplies, personnel and other services could adversely affect our ability to execute on a timely basis our development, exploitation and exploration plans within our budget. Our lease ownership may be diluted due to financing strategies we may employ in the future due to our lack of capital. Our business plan anticipates that we will be able to develop our oil and gas properties. The cost to develop our oil and gas properties is significant, and, to date, we have been unable to fully implement our business plan due to our limited amount of funds and the availability of drilling equipment. Unless we can fully implement our business plan, our revenues and results of operations, and the value of your investment, will be adversely affected. We have accumulated losses. Our continued inability to generate revenues that will allow us to profitably operate our business could adversely affect the value of your investment. Even if we fully develop our oil and gas properties, we may not be profitable. Our inability to operate profitably will adversely affect our business and the value of your investment. We may not have enough insurance to cover all of the risks we face. If our insurance coverage should prove to be inadequate, our financial condition and results of operations, as well as the value of your investment, could be adversely affected. Oil and natural gas prices are highly volatile in general and low prices negatively affect our financial results. Government regulation and liability for environmental matters may adversely affect our business and results of operations. Reserve estimates depend on many assumptions that may turn out to be inaccurate. Any material inaccuracies in these reserve estimates or underlying assumptions will materially affect the quantities and present value of our reserves. Development of our reserves, when and if established, may not occur as scheduled and the actual results may not be as anticipated. Our common stock is thinly traded, so you may be unable to sell at or near ask prices or at all if you need to sell your stock to raise money or otherwise desire to liquidate your shares. Our right to issue additional capital stock at any time could have an adverse effect on your proportionate ownership and voting and other rights. We have not paid cash dividends and it is unlikely that we will pay cash dividends in the foreseeable future. Investing in our securities will not provide you with income. Our dependence on outside equipment and service providers may hurt our profitability. We must increase our oil production revenue or develop additional sources of funds to support our oil operations. Drilling for and producing oil is a high risk activity with many uncertainties that could adversely affect our business, financial condition or results of operations.

Full 10-K form ▸

21239--3/28/2007--COASTAL_CARIBBEAN_OILS_&_MINERALS_LTD