Significant Risks and Management's Plans

12 Months Ended

Dec. 31, 2011

Significant Risks and Management's Plans

Significant Risks and Management's Plans

NOTE 17: Significant Risks and Management’s Plans

The liquidity of the Company should be considered in light of the cyclical nature of demand for land and transition zone seismic services.  These fluctuations have impacted the Company’s liquidity as supply and demand factors directly affect pricing.

Market

The Company’s ability to meet its obligations depends on its future performance, which in turn is subject to general economic conditions, activity levels in the oil and gas exploration sector, and other factors beyond the Company’s control.

Competition

The Company’s products and services are highly competitive and characterized by continual changes in technology.  Competitive pressures or other factors also may result in significant price competition that could have a material adverse effect on the Company’s operations and financial condition.

Technology

Future technological advances could require the Company to make significant capital expenditures to remain competitive.  The Company competes in a capital intensive industry.  The development of seismic data acquisition equipment has been characterized by rapid technological advancements in recent years, and the Company expects this trend to continue.

There can be no assurance that manufacturers of seismic equipment will not develop new systems that have competitive advantages over systems now in use that either render the Company’s current equipment obsolete or require the Company to make significant capital expenditures to maintain its competitive position.  There can be no assurance that the Company will have the capital necessary to upgrade its equipment to maintain its competitive position or that any required financing therefore will be available on favorable terms.  If the Company is unable to raise the capital necessary to update its seismic data acquisition systems to the extent necessary, it may be materially and adversely affected.