38079--2/28/2008--FOREST_OIL_CORP

related topics
{gas, price, oil}
{loss, insurance, financial}
{debt, indebtedness, cash}
{cost, regulation, environmental}
{operation, international, foreign}
{acquisition, growth, future}
{provision, law, control}
{competitive, industry, competition}
{operation, natural, condition}
Oil and natural gas prices fluctuate due to a number of factors outside of our control, and declining prices will adversely affect our financial condition and results of operations. We have substantial capital requirements, and we may be unable to obtain needed financing on satisfactory terms necessary to execute our operating strategy. We have substantial indebtedness and may incur more debt in the future, and our leverage may materially affect our operations and financial condition. Our use of hedging transactions could result in financial losses or reduce our income. Our proved reserves are estimates and depend on many assumptions. Any material inaccuracies in these assumptions could cause the quantity and value of our oil and gas reserves, and our revenue, profitability, and cash flow, to be materially different from our estimates. Lower oil and gas prices and other factors may cause us to record ceiling test writedowns. Our failure to replace our reserves could result in a material decline in our reserves and could adversely affect our financial condition. Drilling oil and natural gas wells is a high-risk activity and subjects us to a variety of factors that we cannot control. The marketability of our production is dependent upon transportation and processing facilities over which we may have no control. We may not be insured against all of the operating risks to which our businesses are exposed. Our international operations may be adversely affected by currency fluctuations and economic and political developments. Competition within our industry may adversely affect our operations. Our growth depends on our ability to acquire oil and gas properties on a profitable basis. Our oil and gas operations are subject to various environmental and other governmental regulations that materially affect our operations. We have limited control over the activities on properties we do not operate. Our Restated Certificate of Incorporation and Bylaws have provisions that discourage corporate takeovers.

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