833845--3/23/2007--BOOTS_&_COOTS_INTERNATIONAL_WELL_CONTROL

related topics

{stock, price, share}

{gas, price, oil}

{operation, international, foreign}

{debt, indebtedness, cash}

{personnel, key, retain}

{stock, price, operating}

{operation, natural, condition}

{financial, litigation, operation}

{control, financial, internal}

{competitive, industry, competition}

{interest, director, officer}

{acquisition, growth, future}

{investment, property, distribution}

Risks Relating to Our Business Demand for our services and products depends on oil and natural gas industry activity and expenditure levels that are directly affected by trends in oil and natural gas prices. We may not successfully integrate the businesses we acquire or achieve the benefits we are seeking from acquisitions. Disruptions in the political and economic conditions of the foreign countries in which we operate expose us to risks that may have a material adverse effect on our business. We are subject to foreign exchange and currency risks, particularly with respect to Venezuela. We must successfully compete for the services of highly trained technical personnel. Our hydraulic workover/snubbing business is susceptible to seasonal earnings volatility and may be adversely affected by severe weather. We have borrowed, and may in the future borrow, money to fund our operations and growth, which exposes us to certain risks that may materially impact our operations. Our ability to finance our business activities will require us to generate substantial cash flow. The loss of one or more of our current customers could adversely affect our results of operations. The intense competition in our industry could result in reduced profitability and loss of market share for us. We could be subject to substantial liability claims that could harm our financial condition. Risks Relating to Our Relationship with Oil States Energy Services, Inc. Oil States Energy Services, Inc. owns a significant percentage of common stock in our company, which could limit your ability to influence the outcome of stockholder votes. We have renounced any interest in specified business opportunities, and Oil States International, Inc. and its director nominees on our board of directors generally have no obligation to offer us those opportunities. Risks Relating to Ownership of Our Common Stock Future sales of our common stock by our existing stockholders may depress our stock price. Trading volumes of our shares of common stock have been comparatively low and, therefore, our common stock may suffer from limited liquidity and its prices will likely be volatile and its value may be adversely affected. We have not paid, and do not anticipate paying, any dividends on our common stock in the foreseeable future. You may experience dilution of your ownership interests due to the future issuance of additional shares of our common stock. We may issue preferred stock, the terms of which could adversely affect the voting power or value of our common stock. The ownership interest of Oil States Energy Services, Inc., the Rights Agreement by and between us and American Stock Transfer Trust Company dated November 17, 2001 ("Rights Agreement"), provisions contained in our certificate of incorporation and bylaws and provisions of Delaware law could discourage a takeover attempt, which may reduce or eliminate the likelihood of a change of control transaction and, therefore, your ability to sell your shares for a premium. Lack of effective internal control over financial reporting could result in an inability to accurately report our financial results that could lead to a loss of investor confidence in our financial reports and have an adverse effect on our stock price.

Full 10-K form ▸

833845--3/23/2007--BOOTS_&_COOTS_INTERNATIONAL_WELL_CONTROL_INC