813779--4/2/2007--CRIMSON_EXPLORATION

related topics

{gas, price, oil}

{stock, price, share}

{acquisition, growth, future}

{regulation, change, law}

{control, financial, internal}

{investment, property, distribution}

{cost, regulation, environmental}

{provision, law, control}

{personnel, key, retain}

{debt, indebtedness, cash}

{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. We may borrow funds to finance capital expenditures and for other purposes which 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. Estimates of crude oil and natural gas reserves depend on many assumptions that may turn out to be inaccurate. Approximately 12% of our total estimated at December 31, 2006 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. 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 1-for-10 reverse stock split could cause a reduction in the total market value of our common stock, increase the volatility of our stock price and has increased the number of shares of common stock we may issue.

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813779--4/2/2007--CRIMSON_EXPLORATION_INC.