943861--3/15/2006--GOODRICH_PETROLEUM

related topics

{gas, price, oil}

{operation, natural, condition}

{loss, insurance, financial}

{loan, real, estate}

{debt, indebtedness, cash}

{personnel, key, retain}

{cost, regulation, environmental}

{acquisition, growth, future}

Our actual production, revenues and expenditures related to our reserves are likely to differ from our estimates of proved reserves. We may experience production that is less than estimated and drilling costs that are greater than estimated in our reserve report. These differences may be material. Natural gas and oil prices are volatile, and low prices have had in the past and could have in the future a material adverse impact on our business. Our use of oil and gas price hedging contracts may limit future revenues from price increases and result in significant fluctuations in our net income. Delays in development or production curtailment affecting our material properties may adversely affect our financial position and results of operations. Because our operations require significant capital expenditures, we may not have the funds available to replace reserves, maintain production or maintain interests in our properties. We may have difficulty financing our planned growth. If we are not able to replace reserves, we may not be able to sustain production at present levels. We may incur substantial impairment writedowns. A majority of our production, revenue and cash flow from operating activities are derived from assets that are concentrated in a geographic area. The oil and gas business involves many uncertainties, economic risks and operating risks that can prevent us from realizing profits and can cause substantial losses. Our debt instruments impose restrictions on us that may affect our ability to successfully operate our business. We may be unable to identify liabilities associated with the properties that we acquire or obtain protection from sellers against them. We are subject to complex laws and regulations, including environmental regulations that can adversely affect the cost, manner or feasibility of doing business. Competition in the oil and gas industry is intense, and we are smaller and have a more limited operating history than some of our competitors. Our success depends on our management team and other key personnel, the loss of any of whom could disrupt our business operations. Some of our operations are exposed to the additional risk of tropical weather disturbances. Terrorist attacks or similar hostilities may adversely impact our results of operations.

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943861--3/15/2006--GOODRICH_PETROLEUM_CORP