874499--3/16/2009--GULFPORT_ENERGY

related topics

{gas, price, oil}

{stock, price, share}

{control, financial, internal}

{operation, natural, condition}

{stock, price, operating}

{loss, insurance, financial}

{cost, regulation, environmental}

{acquisition, growth, future}

{condition, economic, financial}

{personnel, key, retain}

{cost, contract, operation}

{loan, real, estate}

{regulation, government, change}

The volatility of oil and natural gas prices due to factors beyond our control greatly affects our profitability. Declining general economic, business or industry conditions may have a material adverse effect on our results of operations, liquidity and financial condition. Our success depends on finding, developing or acquiring additional reserves. Our failure to successfully identify, complete and integrate future acquisitions of properties or businesses could reduce our earnings and slow our growth. Our Canadian oil sands project is a complex undertaking and may not be completed at our estimated cost or at all. Shortage of rigs, equipment, supplies or personnel may restrict our operations. We rely on a few key employees whose absence or loss could disrupt our operations resulting in a loss of revenues. Estimates of oil and natural gas reserves are uncertain and may vary substantially from actual production. There are numerous uncertainties in estimating quantities of bitumen reserves and resources and the indicated level of reserves or recovery of bitumen may not be realized. The marketability of our production is dependent upon compressors, gathering lines, transportation barges and other facilities, certain of which we do not control. When these facilities are unavailable, our operations can be interrupted and our revenues reduced. An substantial portion of our producing properties is located in Louisiana, making us vulnerable to risks associated with operating in this region. Our identified drilling locations comprise an estimation of part of our future drilling plans over several years, making them susceptible to uncertainties that could materially alter the occurrence or timing of their drilling. Operating hazards and uninsured risks may result in substantial losses. Our operations are subject to various governmental regulations which require compliance that can be burdensome and expensive. We face extensive competition in our industry. We depend upon two customers for the sale of most of our oil and natural gas production. Our method of accounting for oil and natural gas properties may result in impairment of asset value. Our use of 2-D and 3-D seismic data is subject to interpretation and may not accurately identify the presence of oil and natural gas, which could adversely affect the results of our drilling operations. We have entered into forward sales contracts and may in the future enter into additional contracts for a portion of our production, which may result in our making cash payments or prevent us from receiving the full benefit of increases in prices for oil and gas. A terrorist attack or armed conflict could harm our business. Conservation measures and technological advances could reduce demand for oil and natural gas. We are subject to the requirements of Section 404 of the Sarbanes-Oxley Act. If the costs related to such compliance are significant, our profitability, stock price and results of operations and financial condition could be materially adversely affected. Our system of disclosure and internal controls and procedures may not be successful in preventing all errors and fraud, or in making all material information known in a timely manner to management. If our quarterly revenues and operating results fluctuate significantly, the price of our common stock may be volatile. Our officers and directors together with our largest stockholder control a significant percentage of our common stock, and their interests may conflict with those of our other stockholders. An active trading market for our common stock may not develop or be sustained. We do not currently pay dividends on our common stock and do not anticipate doing so in the future. A change of control could limit our use of net operating losses. Future sales of our common stock may depress our stock price. We could issue preferred stock which could be entitled to dividend, liquidation and other special rights and preferences not shared by holders of our common stock or which could have anti-takeover effects.

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874499--3/16/2009--GULFPORT_ENERGY_CORP