821483--3/10/2006--DELTA_PETROLEUM

related topics

{gas, price, oil}

{operation, natural, condition}

{loss, insurance, financial}

{cost, contract, operation}

{cost, regulation, environmental}

{debt, indebtedness, cash}

{personnel, key, retain}

{competitive, industry, competition}

We may not be able to fund our planned capital expenditures. Information concerning our reserves is uncertain. We may not be able to replace production with new reserves. If oil or natural gas prices decrease or exploration and development efforts are unsuccessful, we may be required to take writedowns. The exploration, development and operation of oil and gas properties involve substantial risks that may result in a total loss of investment. Prices may be affected by regional factors. Our industry experiences numerous operating hazards that could result in substantial losses. Our level of indebtedness could adversely affect our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or our industry and prevent us from meeting our obligations under our senior unsecured notes. Acquisitions are a part of our business strategy and are subject to the risks and uncertainties of evaluating recoverable reserves and potential liabilities. We depend on key personnel. We may not be permitted to develop some of our offshore California properties or, if we are permitted, the substantial cost to develop these properties could result in a reduction of our interest in these properties or cause us to incur penalties. We are exposed to additional risks through our drilling business. Hedging transactions may limit our potential gains or cause us to lose money. We may not receive payment for a portion of our future production. We have no long-term contracts to sell oil and gas. There is currently a shortage of available drilling rigs and equipment which could cause us to experience higher costs and delays that could adversely affect our operations. The marketability of our production depends mostly upon the availability, proximity and capacity of gas gathering systems, pipelines and processing facilities, which are owned by third parties. Our industry is highly competitive, making our results uncertain. New technologies may cause our current exploration and drilling methods to become obsolete, resulting in an adverse effect on our production. Terrorist attacks aimed at our facilities could adversely affect our business. We own properties in the Gulf Coast region that could be susceptible to damage by severe weather. We may incur substantial costs to comply with the various federal, state and local laws and regulations that affect our oil and gas operations.

Full 10-K form ▸

821483--3/10/2006--DELTA_PETROLEUM_CORP/CO