924805--6/16/2008--BMB_MUNAI

related topics

{gas, price, oil}

{loss, insurance, financial}

{cost, regulation, environmental}

{debt, indebtedness, cash}

{operation, international, foreign}

A substantial or extended decline in oil prices may adversely affect our business, financial condition, cash flow, liquidity or results of operations, our ability to meet our capital expenditure obligations and financial commitments or to implement our business strategy. 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. Forty eight percent of our proven properties are undeveloped; therefore the risk associated with our success is greater than would be the case if all of our properties were categorized as proved developed producing. We will be unable to produce up to 94% 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. 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. The unavailability or high cost of drilling rigs, equipment, supplies, personnel and oil field services could adversely affect our ability to execute on a timely basis our exploration and development plans within our budget. 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. Competition in the oil and natural gas industry is intense, which may adversely affect our ability to compete. 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.

Full 10-K form ▸

924805--6/16/2008--BMB_MUNAI_INC