61398--9/25/2008--MAGELLAN_PETROLEUM_CORP_/DE/

related topics
{gas, price, oil}
{stock, price, share}
{cost, regulation, environmental}
{loss, insurance, financial}
{provision, law, control}
{operation, international, foreign}
{personnel, key, retain}
{stock, price, operating}
{competitive, industry, competition}
Our plans to successfully drill for oil and gas on fields located in the U.K. may not result in successful discoveries of oil and gas. We may not be successful in sharing the exploration and development costs of the fields and permits in which we hold interests. Fluctuations in our operating results and other factors may depress our stock price. The loss of key MPAL personnel could adversely affect our ability to operate. There are risks inherent in foreign operations such as adverse changes in currency values and foreign regulations relating to MPAL s exploration and development operations and to MPAL s payment of dividends to us. Our Restated Certificate of Incorporation includes provisions that could delay or prevent a change in control of our Company that some of our shareholders may consider favorable. Our dividend policy could depress our stock price. We may issue a substantial number of shares of our common stock under our stock option plans and shareholders may be adversely affected by the issuance of those shares. If our shares are delisted from trading on the Nasdaq Capital Market, their liquidity and value could be reduced. RISKS RELATED TO THE OIL AND GAS INDUSTRY Oil and gas prices are volatile. A decline in prices could adversely affect our financial position, financial results, cash flows, access to capital and ability to grow. Competition in the oil and natural gas industry is intense, and many of our competitors have greater financial and other resources than we do. Our oil and gas exploration and production operations are subject to numerous environmental laws, compliance with which may be extremely costly. The actual quantities and present value of our proved reserves may prove to be lower than we have estimated. We may not have funds sufficient to make the significant capital expenditures required to replace our reserves. If we are not able to replace reserves, we may not be able to sustain production. Exploration and development drilling may not result in commercially productive reserves. Future price declines may result in a write-down of our asset carrying values. Oil and gas drilling and producing operations are hazardous and expose us to environmental liabilities.

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