924805--6/15/2009--BMB_MUNAI

related topics

{gas, price, oil}

{stock, price, share}

{cost, regulation, environmental}

{debt, indebtedness, cash}

{loss, insurance, financial}

{provision, law, control}

{investment, property, distribution}

{condition, economic, financial}

{operation, international, foreign}

{loan, real, estate}

Our current liabilities exceed our current assets which, if not resolved, may result in the Company being unable to satisfy its obligations or make suitable arrangements with creditors as obligations become due. The current financial crisis and economic conditions have and may continue to have a material adverse impact on our business and financial condition that we cannot predict. Oil and gas prices are characteristically volatile, and if they remain low for a prolonged period, our revenues, profitability and cash flows will decline. A sustained period of low oil and natural gas prices would adversely affect our business operations, our asset values and our financial condition and ability to meet our financial commitments. We may not have the funds, or the ability to raise the funds, necessary to repurchase the Notes when they become due. Future price declines may result in a write-down of our asset carrying values. Unless we replace our oil and natural gas reserves, our reserves and future production will decline, which would adversely affect our cash flows and income. We may not be able to replace our reserves or generate cash flows if we are unable to raise capital. Drilling for and producing oil and gas is a costly and high-risk activity with many uncertainties that could adversely affect our financial condition or results of operations. Reserve estimates depend on many assumptions that may turn out to be inaccurate. Any material inaccuracies in these reserve estimates or underlying assumptions will materially affect the size and present value of our reserves. We will be unable to produce up to 68% of our proved reserves if we are not able to obtain a commercial production contract or extend our current exploration contract, which would likely require us to terminate our operations. Prospects that we decide to drill may not yield oil or natural gas in commercially viable quantities or quantities sufficient to meet our targeted rate of return. We may incur substantial losses and be subject to substantial liability claims as a result of our operations. We are subject to complex laws that can affect the cost, manner or feasibility of doing business. We may incur substantial liabilities to comply with environmental laws and regulations. Because of our lack of asset and geographic diversification, adverse developments in our operating area would adversely affect our results of operations. The unavailability or high price of transportation systems could adversely affect our ability to deliver our oil on terms that would allow us to operate profitably, or at all. We depend on one customer for sales of crude oil. A reduction by this customer in the volumes of oil it purchases could result in a substantial decline in our revenues and net income. If you purchase shares of our stock, your investment will be subject to the same risks inherent in international operations, including, but not limited to, adverse governmental actions, political risks, and expropriation of assets, loss of revenues and the risk of civil unrest or war. Our ability to obtain additional financing or use our operating cash flow to fund operations may be adversely affected by our level of indebtedness. Risks Relating to Our Common Stock Our stock price may be volatile. It is unlikely that we will be able to pay dividends on our common stock. The percentage ownership evidenced by the common stock is subject to dilution. Our common stock is an unsecured equity interest. Provisions in Nevada law could delay or prevent a change in control, even if that change would be beneficial to our stockholders.

Full 10-K form ▸

924805--6/15/2009--BMB_MUNAI_INC