Camber Energy Announces Execution of Letter of Intent Relating to Asset Disposition and Assignment of Debt

Source Press Release
Company Camber Energy, Inc.N&B Energy, LLC 
Tags Asset Deals, Deals, Upstream Activities
Date June 26, 2018

Camber Energy, Inc. (NYSE American: CEI) (the ''Company'' or ''Camber''), based in San Antonio, Texas, a growth-oriented, independent oil and gas company engaged in the development of crude oil, natural gas and natural gas liquids, announced the execution of a non-binding letter of intent on June 25, 2018, in connection with the disposition of a substantial portion of its assets in exchange for the buyer's assumption of all of Camber's debt with its bank, International Bank of Commerce ("IBC"). The proposed buyer pursuant to the letter of intent is a party affiliated with Richard N. Azar II, Camber's former Chief Executive Officer and former director who resigned on June 21, 2018, and Donnie B. Seay, our current director.

The closing of the transaction is subject to customary closing conditions including negotiation of definitive closingdocuments, approval of IBC and shareholder approval, among others.

In the event the parties enter into definitive documents, the transaction is approved by the Company's shareholders and closes, the Company will retain its assets in Glasscock County and Hutchinson Counties, Texas and will also retain a 12.5% production payment and a 3% overriding royalty interest in its existing Okfuskee County, Oklahoma asset. Camber is also evaluating additional acquisition opportunities which will further enhance the Company's growth plans, funding permitting.

Additionally, if the Closing occurs, it will extinguish all of the Company's existing bank debt, which should significantly enhance the Company's balance sheet.

The Interim CEO of Camber, Louis G. Schott, noted, "This transaction will position the Company to improve its balance sheet by substantially reducing or eliminating its long-term liabilities. Once this occurs, the Company plans to pursue growth in its remaining assets as well as additional acquisition opportunities.''

Mr. Schott continued, ''This should also help the Company to regain compliance with the continued listing standards of the NYSE American.''

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd