813779--3/31/2008--CRIMSON_EXPLORATION

related topics

{gas, price, oil}

{stock, price, share}

{acquisition, growth, future}

{control, financial, internal}

{regulation, change, law}

{cost, regulation, environmental}

{debt, indebtedness, cash}

{provision, law, control}

{personnel, key, retain}

{investment, property, distribution}

{interest, director, officer}

{stock, price, operating}

Our success depends heavily upon our ability to market our crude oil and natural gas production at favorable prices. Our substantial indebtedness could possibly have important consequences to our shareholders, including the following: We have incurred net losses in the past and there can be no assurance that we will be profitable in the future. We may not be able to successfully integrate the properties and assets we acquire with our existing operations. Estimates of crude oil and natural gas reserves depend on many assumptions that may turn out to be inaccurate. Approximately 25% of our total estimated at December 31, 2007 were , which are by their nature less certain. You should not interpret the referred to in this annual report as the current market value of our estimated crude oil and natural gas reserves. The business of acquiring, enhancing or developing reserves requires considerable capital. Drilling for crude oil and natural gas may not be profitable. The interpretation and analysis of 3-D seismic data does not allow the interpreter to know if hydrocarbons are present or economically producible. Our industry experiences numerous operating risks that could cause us to suffer substantial losses. Our past growth has been attributable to acquisitions of producing crude oil and natural gas properties with . There are risks involved with such acquisitions. When we acquire properties, in most cases, we are not entitled to contractual indemnification for pre-closing liabilities, including environmental liabilities. in properties that are less than the controlling interest. We will need additional financing in the future to continue to fund our development and exploitation activities. The marketing of our natural gas production depends, in part, upon the availability, proximity and capacity of natural gas gathering systems, pipelines and processing facilities. The crude oil and natural gas industry is highly competitive in all of its phases. The domestic oil industry is extensively regulated at both the federal and state levels. Although we believe we are presently in compliance with all laws, rules and regulations, we cannot assure you that changes in such laws, rules or regulations, or the interpretation thereof, will not have a material adverse effect on our financial condition or the results of our operations. If we are unable to successfully address material weaknesses in our internal controls, our ability to report our financial results on a timely and accurate basis may be adversely affected. As a result, current and potential stockholders could lose confidence in our financial reporting and it may also result in regulatory sanctions or fines, which could have a material adverse effect on our business, operating results and stock price. We have blank check preferred stock. We are not paying dividends on our Common Stock. The holders of our Common Stock do not have cumulative voting rights, preemptive rights or rights to convert their Common Stock to other securities. The number of shares of outstanding Common Stock could increase significantly as a result of the 2005 sale of Series G Preferred Stock sold to OCMGW and Affiliates. Our common stock is thinly traded and there is no active trading market for our common stock and an active trading market may not develop.

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813779--3/31/2008--CRIMSON_EXPLORATION_INC.