HOUSTON, Feb. 24, 2017 /PRNewswire/ -- Camber Energy,
Inc. (NYSE MKT: CEI) ("Camber Energy" or the "Company"), an
independent oil and gas exploration and production company with
operations in Texas and
Oklahoma, announced today that its newly formed subsidiary,
Camber Permian II LLC ("CPII"), has entered into a definitive
Purchase and Sale Agreement ("PSA") with private sellers to acquire
oil and gas leases covering approximately 15,500 gross acres
(13,000 net acres) in the Permian Basin for $11.03 million (known as the "Arrowhead
Project").
The Arrowhead Project covers a contiguous block of acreage
across the Yoakum and Cochran County line of the Permian Basin and
includes a completed horizontal San Andres well and a salt-water
disposal well, both currently shut-in. CPII will put the San
Andres well back into production once the salt-water disposal well
is placed into service. The transaction, which is targeted to
close on or before March 30, 2017, is
subject to, among other things, certain purchase price adjustments
pursuant to title confirmation and a customary due diligence
investigation.
Concurrently with the execution of the PSA, CPII also entered
into an exploration agreement with certain undisclosed
joint-venture partners. This agreement gives CPII access to
the proprietary technical, geologic database over the Arrowhead
Project. As consideration, the joint-venture partners have
the option to own up to a 10% working interest, 5% of which is
carried in the lease acquisition. CPII will own the remaining
90% to 95% working interest in the leasehold and will control
operatorship of the subject properties.
The acquisition of the Arrowhead Project will initially be 100%
funded by Jaffe Energy, Inc. ("JEI"). JEI is a closely-held,
newly-formed investment vehicle, led by Morris D. "Doug" Jaffe,
Jr., Chief Executive Officer, and Justin
Jaffe, President. Doug Jaffe, Jr., is an accomplished
businessman with a history of investments in the energy
sector. In the late 1980s Mr. Jaffe purchased over ten
percent of the total outstanding shares of Apache Corporation stock
and joined Apache's Board of Directors at a speculative time in
that company's history. Subsequently, Apache successfully
transitioned from a partnership-based company to a pure oil and gas
exploration and production play to become what it is today, a
large, international E&P company. Justin Jaffe will spearhead the initial
investments in the San Andres with Camber Energy.
CPII is structured to ultimately be jointly owned 50%/50% by the
Company and JEI, after giving effect to certain earn-in provisions
requiring the Company to fund 100% of the drilling and completion
spending until such time when Camber's capital investment is equal
to the initial capital investment made by JEI, plus an agreed
premium to such amount, which is currently estimated to occur after
the drilling and completion of six (6) initial wells. CPII
expects to drill and complete these initial wells, or more, at the
Arrowhead Project during calendar 2017, subject to obtaining
development financing.
"This acquisition is consistent with our objectives to
significantly increase the Company's presence in the
rapidly-emerging horizontal San Andres play of the Permian
Basin. Geographically, the Arrowhead Project is entirely
separate from our other San Andres acreage position, and it expands
and diversifies our exposure to this new play," said Anthony C. Schnur, the Chief Executive Officer
of Camber Energy. "We are also pleased to welcome our
financial partner, Jaffe Energy, joining Camber in this
transaction.
"We expect this acquisition to provide the Company with a
multi-year growth opportunity and an inventory of 75-plus potential
drilling locations," Mr. Schnur continued. "At closing, Camber will
have amassed an operated position of approximately 16,000 net acres
in the Permian Basin, representing another step in our commitment
to growth by adhering to our core competencies. Through our
ownership and 20-plus year knowledge archive of the similar Hunton
play in central Oklahoma, we
believe that a number of practices and operational efficiencies
from the Hunton may be applied advantageously to our San Andres
development. We continue to maintain an aggressive growth
posture and are intent on building shareholder value through field
re-development, drilling, and continued strategic asset
acquisitions."
About Camber Energy, Inc.
Based in Houston, Texas, Camber
Energy (NYSE MKT: CEI) is a growth-oriented, independent oil and
gas company engaged in the development of crude oil and natural gas
in the Austin Chalk and Eagle Ford formations in south Texas, the Permian Basin in west Texas, and the Hunton formation in central
Oklahoma. For more information about the Company and its
strategic operational activities, please visit www.camber.energy.
Safe Harbor Statement and Disclaimer
This news release includes "forward looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward looking statements give our current
expectations, opinions, belief or forecasts of future events and
performance. A statement identified by the use of forward
looking words including "may," "will," "expect," "anticipate,"
"estimate," "hope," "plan," "believe," "predict," "envision," "if,"
"intend," "would," "probable," "project," "forecasts," "outlook,"
"aim," "might," "likely" "positioned," "strategy," "continue,"
"potential," "ensure," "should," "confident," "could" and similar
words and expressions, and the negative thereof, and certain of the
other foregoing statements may be deemed forward-looking
statements. Although Camber Energy believes that the
expectations reflected in such forward-looking statements are
reasonable, these statements involve risks and uncertainties that
may cause actual future activities and results to be materially
different from those suggested or described in this news release,
including our ability to integrate and realize the benefits
expected from the Segundo acquisition and future acquisitions that
we may complete; the availability of funding and the terms of such
funding; our growth strategies; anticipated trends in our business;
our ability to repay outstanding loans and satisfy our outstanding
liabilities; our liquidity and ability to finance our exploration,
acquisition and development strategies; market conditions in the
oil and gas industry; the timing, cost and procedure for future
acquisitions; the impact of government regulation; estimates
regarding future net revenues from oil and natural gas reserves and
the present value thereof; legal proceedings and/or the outcome of
and/or negative perceptions associated therewith; planned capital
expenditures (including the amount and nature thereof); increases
in oil and gas production; changes in the market price of oil and
gas; changes in the number of drilling rigs available; the number
of wells we anticipate drilling in the future; estimates, plans and
projections relating to acquired properties; the number of
potential drilling locations; our financial position, business
strategy and other plans and objectives for future operations; and
other risks described in Camber Energy's Annual Report on Form 10-K
and other filings with the SEC, available at the SEC's website at
www.sec.gov. Investors are cautioned that any forward-looking
statements are not guarantees of future performance and actual
results or developments may differ materially from those
projected. The forward-looking statements in this press
release are made as of the date hereof. The Company takes no
obligation to update or correct its own forward-looking statements,
except as required by law, or those prepared by third parties that
are not paid for by the Company. The Company's SEC filings
are available on its website or at http://www.sec.gov.
Contacts:
Carol Coale / Ken Dennard
Dennard • Lascar Associates LLC
(713) 529-6600
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/camber-energy-enters-into-purchase-agreement-to-expand-its-permian-basin-position-300412990.html
SOURCE Camber Energy, Inc.