Camber Energy Announces Closing of Asset Disposition and Assignment of Debt

Source Press Release
Company Camber Energy, Inc.N&B Energy, LLC 
Tags Asset Deals, Deals, Upstream Activities
Date September 27, 2018

Camber Energy, Inc. (NYSE American: CEI) (the “Company” or “Camber”), based in Houston, Texas, a growth-oriented, independent oil and gas company engaged in the development of crude oil, natural gas and natural gas liquids, announced the closing, on September 26, 2018, of its previously announced transaction with  N&B Energy, LLC (“N&B”), in connection with the disposition of a substantial portion of its assets in exchange for N&B’s assumption of all of Camber's senior debt with International Bank of Commerce ("IBC"). As previously disclosed, N&B is affiliated with Richard N. Azar, II, Camber's former Chief Executive Officer and former director who resigned as a member of the Board on June 21, 2018, and Donnie B. Seay, a former director who resigned as a member of the Board on July 10, 2018.

Pursuant to the terms of the transaction, the Company has retained its assets in Glasscock County and Hutchinson Counties, Texas and has also been assigned a 12.5% production payment (subject to a maximum of $2,500,000) and a 3% overriding royalty interest in its Okfuskee County, Oklahoma asset which were otherwise assigned to N&B as part of the transaction. In addition, Camber has been assigned an overriding royalty interest on certain undeveloped leasehold interests.

Finally, the Company has, most importantly, extinguished all of its existing bank debt, which totaled approximately $36,900,000, significantly enhancing its balance sheet and cash flow by eliminating the current required monthly debt service payments of $425,000 per month.

The Interim CEO of Camber, Louis G. Schott, noted, “This transaction is a major milestone for the Company. We have significantly improved the Company's balance sheet and have taken major steps towards regaining compliance with the continued listing standards of the NYSE American.”

Mr. Schott continued, “With this momentum, we believe the Company is in a position for growth through acquisition and development opportunities.”

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd