that the Company currently enjoys in the V aldOr region will continue Any erosion of the Companys competitive position could have a material adverse effect on the Companys business results of operations financial condition and growth prospects A significant portion of the drilling services business is a result of being awarded contracts through a competitive tender process It is possible that the Company may lose potential new contracts to competitors if it is unable to demonstrate reliable performance technical competence and competitive pricing as part of the tender process or if mining companies elect not to undertake a competitive tender process Inability to Sustain and Manage Growth The Companys revenue has grown in recent years as a result of the combination of Orbit and Garant and the Drift acquisition and an increase in demand domestically and internationally for drilling services The Companys ability to sustain its growth will depend on a number of factors many of which are beyond the Companys control including but not limited to commodity prices the ability of mining companies to raise financing and the demand for raw materials from large emerging economies such as the BRIC economies In addition the Company is subject to a variety of business risks generally associated with growing companies F uture growth and expansion could place significant strain on the Companys management personnel and likely will require the Company to recruit additional management personnel There can be no assurance that the Company will be able to manage its expanding operations including any acquisitions effectively that it will be able to sustain or accelerate its growth or that such growth if achieved will result in profitable operations that it will be able to attract and retain sufficient management personnel necessary for continued growth or that it will be able to successfully make strategic investments or acquisitions The failure to accomplish any of the foregoing could have a material adverse effect on the Companys financial performance financial condition cash flows and growth prospects F uture Acquisition Strategy The Company intends to continue to grow through acquisitions in addition to organic growth There is considerable competition within the drilling services industry for attractive acquisition targets It is not possible to ensure that future acquisition opportunities will exist on acceptable terms or that newly acquired or developed entities will be successfully integrated into the Companys operations A dditionally the Company cannot give assurances that it will be able to secure the adequate financing on acceptable terms to pursue this strategy Customer Contracts The Companys surface drilling customer contracts are typically for a term of six to 12 months and its underground drilling customer contracts are typically for a term of one to two years and can be cancelled by the customer on short notice in prescribed circumstances with limited or no amounts payable to the Company There is a risk that existing contracts may not be renewed or replaced The failure to renew or replace some or all of these existing contracts and cancellation of existing contracts could have a material adverse effect on the Companys financial performance financial condition cash flows and growth prospects In addition consolidation by the Companys customers could materially adversely affect the Companys results of operations and financial condition International Expansion and Instability Expansion internationally entails additional political and economic risk Some of the countries and areas targeted by the Company for expansion are undergoing industrialization and urbanization and do not have the economic political or social stability that many developed nations now possess Other countries have experienced political or economic instability in the past and may be subject to risks beyond the Companys control such as war or civil disturbances political social and economic instability corruption nationalization terrorism expropriation without fair compensation or cancellation of contract rights significant changes in government policies breakdown of the rule of law and regulations and new tariffs taxes and other barriers There is a risk that the Companys operations assets employees or repatriation of revenue could be impaired or 73