319156--9/29/2008--CUBIC_ENERGY

related topics

{gas, price, oil}

{stock, price, share}

{interest, director, officer}

{cost, regulation, environmental}

{control, financial, internal}

{loss, insurance, financial}

{debt, indebtedness, cash}

{cost, contract, operation}

{stock, price, operating}

{personnel, key, retain}

{provision, law, control}

{competitive, industry, competition}

{loan, real, estate}

We face significant competition, and many of our competitors have resources in excess of our available resources. We face increased competition for available drilling rigs and other oilfield equipment and services, which could increase our costs, cause our drilling program to be delayed or cause our leases to lapse. Exploratory drilling is a speculative activity that may not result in commercially productive reserves and may require expenditures in excess of budgeted amounts. We are in a capital-intensive business and we will need additional funds. We have a history of operating losses and may not be profitable in the future. We have substantial capital requirements necessary for undeveloped properties for which we may not be able to obtain adequate financing. Servicing our debt requires a significant amount of cash, and we may not have sufficient cash flow from our business to pay our substantial debt. Oil and natural gas prices fluctuate widely and low prices could have a material adverse impact on our business and financial results. We are subject to uncertainties in reserve estimates and future net cash flows. We are subject to various operating and other casualty risks that could result in liability exposure or the loss of production and revenues. Our business may suffer if we lose key personnel. Certain of our affiliates control a majority of our outstanding common stock, which may affect other shareholders ability to influence matters submitted to a vote of shareholders. Certain of our affiliates have engaged in business transactions with the Company, which may result in conflicts of interest. The liquidity, market price and volume of our stock are volatile, and our stock is subject to certain penny stock rules. We may experience adverse consequences because of required indemnification of officers and directors. Certain anti-takeover provisions may discourage a change in control. We do not intend to declare dividends in the foreseeable future. Our internal controls over financial reporting may not be effective, which could have a significant and adverse effect on our business. We may not have satisfactory title to our properties. We are subject to various governmental regulations which may cause us to incur substantial costs. We are subject to various environmental risks which may cause us to incur substantial costs. We may be responsible for additional costs in connection with abandonment of properties.

Full 10-K form ▸

319156--9/29/2008--CUBIC_ENERGY_INC