Pipeline maps related documents

  • 209946efa5c6da6e

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    attributable to the Company's oil and gas reserves have been prepared in accordance with industry standards, no assurance can be given that the estimated costs are accurate, that development will occur as scheduled or that the results will be as estimated.The present value of future net revenues (SEC PV-10) referred to here should not be construed as the current market value of the estimated oil and gas reserves attributable to the Company's properties. In accordance with applicable requirements of the Commission, the estimated discounted future net cash ows from proved reserves are generally based on prices and costs as of the date of the estimate, whereas actual future prices and costs may be materially higher or lower. See "" Volatility of Oil and Natural Gas.'' The timing of actual future net cash ows from proved reserves, and thus their actual present value, will be aected by the timing of both the production and the incurrence of expenses in connection with development and production of oil and gas properties. In addition, the 10% discount factor, which is required by the Commission to be used in calculating discounted future net cash ows for reporting purposes, is not necessarily the most appropriate discount factor based on interest rates in eect from time to time and risks associated with the Company or the oil and gas industry in general.Drilling, Exploration and Development RisksOil and gas exploration and development is a speculative business and involves a high degree of risk. The Company has expended, and plans to continue to expend, signicant amounts of capital on the exploration and development of its oil and gas interests. Even if the results of such activities are favorable, subsequent drilling at signicant costs must be conducted on a property to determine if commercial development of the property is feasible. Oil and gas drilling may involve unprotable eorts, not only from dry holes but from wells that are productive but do not produce sucient net revenues to return a prot after drilling, operating and other costs. It is dicult to project the costs of implementing an exploratory drilling program due to the inherent uncertainties of drilling and completing wells in unknown formations, the costs associated with encountering various drilling conditions such as underpressured and overpressured zones and tools lost in the hole, and changes in drilling plans and locations as a result of prior exploratory wells or additional seismic data and interpretations thereof. The marketability of oil and gas which may be acquired or discovered by the Company will be aected by the quality and viscosity of the production and by numerous factors beyond its control, including market uctuations, the proximity and available capacity of oil and gas pipelines and production equipment, government regulations, including regulations relating to prices, taxes, royalties, land tenure, importing and exporting of oil and gas and environmental protection. The Company's future drilling activities may not be successful, and