b'management and technical team will remain in place. If any of these officers or other key personnelretires, resigns or becomes unable to continue in their present roles and is not adequately replaced, ourresults of operations and financial condition could be materially adversely affected. Our ability tomanage our growth, if any, will require us to continue to train, motivate and manage our employeesand to attract, motivate and retain additional qualified personnel. Competition for these types ofpersonnel is intense, and we may not be successful in attracting, assimilating and retaining thepersonnel required to grow and operate our business profitably.Our business plan requires substantial additional capital, which we may be unable to raise on acceptableterms or at all in the future, which may in turn limit our ability to develop our exploration, appraisal,development and production activities.We expect our capital outlays and operating expenditures to be substantial as we expand ouroperations. Obtaining seismic data, as well as exploration, appraisal, development and productionactivities entail considerable costs, and we may need to raise substantial additional capital throughadditional debt financing, strategic alliances or future private or public equity offerings if our cash flowsfrom operations, or the timing of, are not sufficient to cover such costs.Our future capital requirements will depend on many factors, including:\x7f the scope, rate of progress and cost of our exploration, appraisal, development and productionactivities;\x7f the success of our exploration, appraisal, development and production activities;\x7f oil and natural gas prices;\x7f our ability to locate and acquire hydrocarbon reserves;\x7f our ability to produce oil or natural gas from those reserves;\x7f the terms and timing of any drilling and other production-related arrangements that we mayenter into;\x7f the cost and timing of governmental approvals and/or concessions; and\x7f the effects of competition by larger companies operating in the oil and gas industry.We do not currently have any commitments for future external funding beyond the capacity of ourcommercial debt facility and revolving credit facility. Additional financing may not be available onfavorable terms, or at all. Even if we succeed in selling additional equity securities to raise funds, atsuch time the ownership percentage of our existing shareholders would be diluted, and new investorsmay demand rights, preferences or privileges senior to those of existing shareholders. If we raiseadditional capital through debt financing, the financing may involve covenants that restrict our businessactivities. If we choose to farm-out interests in our licenses, we would dilute our ownership interestsubject to the farm-out and any potential value resulting therefrom, and may lose operating control orinfluence over such license areas.Assuming we are able to commence exploration, appraisal, development and production activitiesor successfully exploit our licenses during the exploratory term, our interests in our licenses (or thedevelopment/production area of such licenses as they existed at that time, as applicable) could extendbeyond the term set for the exploratory phase of the license to a fixed period or life of production,depending on the jurisdiction. If we are unable to meet our well commitments and/or declarecommerciality of the prospective areas of our licenses during this time, we may be subject to significantpotential forfeiture of all or part of the relevant license interests. If we are not successful in raisingadditional capital, we may be unable to continue our exploration and production activities orsuccessfully exploit our license areas, and we may lose the rights to develop these areas. See Under49'