933157--3/7/2008--Aurora_Oil_&_Gas

related topics

{gas, price, oil}

{stock, price, share}

{debt, indebtedness, cash}

{acquisition, growth, future}

{operation, natural, condition}

{loan, real, estate}

{control, financial, internal}

{regulation, change, law}

{competitive, industry, competition}

{personnel, key, retain}

{provision, law, control}

{interest, director, officer}

{cost, operation, labor}

{loss, insurance, financial}

{condition, economic, financial}

{stock, price, operating}

{cost, regulation, environmental}

RISKS RELATED TO OUR BUSINESS Natural gas prices are volatile. A substantial decrease in natural gas prices would significantly affect our business and impede our growth. The failure to develop reserves could adversely affect our production and cash flows. We may have difficulty financing our planned growth. Most of our current development activity and producing properties are located in Michigan and Indiana, making us vulnerable to risks associated with operating in this Our potential 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. We may continue to incur losses. We do not operate a substantial amount of our properties. We may be unable to make acquisitions of producing properties or prospects or successfully integrate them into our operations. We may lose key management personnel. Much of our proved reserves are not yet generating production revenues. Our oil and natural gas reserve data are estimates based on assumptions that may be inaccurate and existing economic and operating conditions that may differ from future economic and operating conditions. Our drilling activities may be unsuccessful. Production levels cannot be predicted with certainty. Drilling and production delays may occur. We do not own any drilling equipment. Pipeline capacity may be inadequate. Our reliance on third parties for gathering and distribution could curtail future There is a potential for increased costs. We may incur compression difficulties and expense. We may not have good and marketable title to our properties. Competition in our industry is intense, and we are smaller and have a more limited operating history than most of our competitors. Oil and natural gas operations involve various operating risks. We may lack insurance that could lower risks to our investors. Our credit facilities have operating restrictions and financial covenants that limit our flexibility and may limit our borrowing capacity; needed increases in borrowing capacity may not be available. Our debt level and the covenants in our credit facility agreements could negatively impact our financial condition, results of operations and business prospects. We may incur non-cash charges to our operations as a result of current and future financing transactions We may be required under accounting rules to take write-downs. We may incur limitations on the effectiveness of controls. We have hedged and may continue to hedge 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 natural gas. We are subject to complex federal, state and local laws and regulations that could RISKS RELATED TO THE OWNERSHIP OF OUR STOCK We may experience volatility in our stock price. A voting block is created by certain voting agreements and irrevocable proxies, and we do not have cumulative Our articles of incorporation contain provisions that discourage a change of control. You may experience dilution of your ownership interests due to the future issuance of shares of our common stock, which could have an adverse effect on our stock price. The market price of our common stock could be adversely affected by sales of substantial amounts of our common stock in the public markets.

Full 10-K form ▸

933157--3/7/2008--Aurora_Oil_&_Gas_CORP