41023--3/12/2010--GEORESOURCES

related topics

{gas, price, oil}

{condition, economic, financial}

{debt, indebtedness, cash}

{cost, regulation, environmental}

{acquisition, growth, future}

{capital, credit, financial}

{operation, natural, condition}

{stock, price, share}

{personnel, key, retain}

{interest, director, officer}

{loss, insurance, financial}

{regulation, change, law}

We are dependent upon the services of our chief executive officer and other executive officers. We must successfully acquire or develop additional reserves of oil and gas. Intense competition in the oil and gas exploration and production segment could adversely affect our ability to acquire desirable properties prospective for oil and gas, as well as producing oil and gas properties. We may be faced with shortages of personnel and equipment, thereby adversely affecting operations and financial results. Volatile oil and natural gas prices could adversely affect our financial condition and results of operations. Industry changes may adversely affect various financial measurements and negatively affect the market price of our common stock. We may incur substantial losses and be subject to substantial liability claims as a result of our oil and natural gas operations. We have hurricane associated risks in connection with our operations in the Texas and Louisiana Gulf Coast. Insurance may not fully recover potential losses. If oil and gas prices decrease or exploration efforts are unsuccessful, we may be required to write-down the capitalized cost of individual oil and gas properties. Revisions of oil and gas reserve estimates could adversely affect the trading price of our common stock. Oil and gas reserves and the standardized measure of cash flows represent estimates, which may vary materially over time due to many factors. Our hedging activities may prevent us from realizing the benefits in oil or gas price increases. Drilling for and producing oil and natural gas are high-risk activities with many uncertainties that could adversely affect our financial condition and results of operations. Existing debt and use of debt financing may adversely affect our business strategy. We are obligated to comply with financial and other covenants in our existing Second Amended Credit Facility that could restrict our operating activities, and the failure to comply could result in defaults that accelerate the payment under our debt. Global financial and economic circumstances may have impacts on our business and financial condition that we currently cannot predict. Changes in financial markets could result in significantly reduced access to public and private capital as well as substantially higher costs of capital if we are able to obtain capital. Our properties may be subject to influence by third parties that do not allow us to proceed with planned explorations and expenditures. Recent legislative proposals could materially lessen the economic viability of domestic exploration and production companies, including us. There are a substantial number of shares of our common stock eligible for future sale in the public market. The sale of a large number of these shares could cause the market price of our common stock to fall. Recovery of investments in acquiring oil and gas properties is uncertain. We cannot assure we would be able to achieve continued growth in assets, production or revenue. The nature of our business and assets may expose us to significant compliance costs and liabilities. Compliance with environmental laws and regulations may require us to spend significant resources. Our failure to successfully identify, complete and integrate future acquisitions of properties or business could reduce our earnings and slow our growth.

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41023--3/12/2010--GEORESOURCES_INC