|
(1) |
Net income for the year ended December 31, 1999 excludes,
and earnings per share for the year ended December 31, 1999
includes, the discount on the redemption of our Preferred
Stock in the amount of $21.9 million.
|
(2) |
Debt repayments include amounts refinanced. |
Forward Looking Statements.
The statements contained in all parts of this document, (including
any portion attached hereto) including, but not limited to, those
relating to our schedule, targets, estimates or results of future
drilling, including the number, timing and results of wells, budgeted
wells, increases in wells, the timing and risk involved in drilling
follow-up wells, expected working or net revenue interests, planned
expenditures, prospects budgeted and other future capital expenditures,
risk profile of oil and gas exploration, acquisition of 3-D seismic
data (including number, timing and size of projects), planned evaluation
of prospects, probability of prospects having oil and natural gas,
expected production or reserves, increases in reserves, acreage,
working capital requirements, hedging activities, the ability of
expected sources of liquidity to implement our business strategy,
future hiring, future exploration activity, production rates, potential
drilling locations targeting coal seams, the outcome of legal challenges
to new coalbed methane drilling permits in Montana, a mezzanine
project facility to finance a majority of the February 2004 acquisition
costs in the Barnett Shale trend and the exploration and development
expenditures in that trend, all and any other statements regarding
future operations, financial results, business plans and cash needs
and other statements that are not historical facts are forward looking
statements. When used in this document, the words "anticipate,"
"budgeted," "targeted," "potential," "estimate," "expect," "may,"
"project," "believe" and similar expressions are intended to be
among the statements that identify forward looking statements. Such
statements involve risks and uncertainties, including, but not limited
to, those relating to our dependence on our exploratory drilling
activities, the volatility of oil and natural gas prices, the need
to replace reserves depleted by production, operating risks of oil
and natural gas operations, our dependence on our key personnel,
factors that affect our ability to manage our growth and achieve
our business strategy, risks relating to our limited operating history,
technological changes, our significant capital requirements, the
potential impact of government regulations, adverse regulatory determinations,
including those related to coalbed methane drilling in Montana,
litigation, competition, the uncertainty of reserve information
and future net revenue estimates, property acquisition risks, industry
partner issues, availability of equipment, weather and other factors
detailed herein and in our other filings with the Securities and
Exchange Commission. Some of the factors that could cause actual
results to differ from those expressed or implied in forward-looking
statements are described under "Management's Discussion and Analysis
of Financial Condition and Results of Operations - Risk Factors"
and in other sections of this report. Should one or more of these
risks or uncertainties materialize, or should underlying assumptions
prove incorrect, actual outcomes may vary materially from those
indicated. All subsequent written and oral forward-looking statements
attributable to us or persons acting on our behalf are expressly
qualified in their entirety by reference to these risks and uncertainties.
You should not place undue reliance on forward-looking statements.
Each forward-looking statement speaks only as of the date of the
particular statement.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
You should read this discussion together
with the consolidated financial statements and other financial information
included in this Form 10-K.
GENERAL OVERVIEW
For the year ended December 31, 2003,
we achieved record annual drilling success rates, levels of production,
natural gas and oil revenues and our proved oil and gas reserves
at the end of 2003 also reached a record level.
26
|
|