HOUSTON, Feb. 14, 2017 /PRNewswire/ -- Camber Energy,
Inc. (NYSE MKT: CEI) ("Camber" or the "Company"), an independent
oil and gas company with its operations in Texas and Oklahoma, today announced its fiscal 2017
third quarter results for the period ending December 31, 2016.
"The fiscal third quarter 2017 was the first full quarter having
absorbed the Segundo assets which closed in August, 2016.
Since September, and throughout the quarter, we have focused on
production enhancement activity especially on the new assets.
These efforts have resulted in an approximate 20% increase in our
existing production rate to 1,054 BOE/day for the month of
December 2016," said Anthony C. Schnur, Chief Executive Officer of
Camber Energy. "While our quarterly results benefited from a
full- contribution from the assets acquired in the Segundo
transaction, we also incurred transaction related one-time charges
and field level workover expenses which are reflected in our
results. We expect further production improvement as we
continue optimizing existing assets and embark upon a drilling
initiative.
"Camber continues to build upon our transformation to a
horizontal player in areas outside of our Oklahoma footprint, expanding our platform of
quality assets on which we can leverage our technical and
operational "de-watering" capabilities. In January 2017, we acquired leasehold interests in
the Central Platform of the Permian Basin, targeting the developing
horizontal San Andres play. The San Andres formation is found
at relatively shallow depths, and we believe it has similar
attributes to the Company's de-watering Hunton play in Oklahoma. We plan to begin drilling in
the San Andres as soon as practical in connection with our lease
acquisition strategy which, at this time, is estimated to occur in
the latter half of 2017. This is a significant step for our
Company and the sustainability of growth into the future.
"As previously disclosed, our growth plan also includes the
development of what we own. We have participated in two Eagle
Ford shale wells and are assessing additional drilling of this
acreage. In Oklahoma, we are in the process of preparing two
locations that we hope to drill in the first half of calendar 2017.
We continue to seek opportunities to make acquisitions of leasehold
or production in new areas, funding permitting. "On
January 5, 2017, we rebranded and
changed our name to Camber Energy, Inc. as part of our strategic
shift to a more aggressively-focused acquirer of assets and acreage
which fundamentally changes our production mix. We will
consider strategic acquisitions that are near the region or
location of our current assets, offer attractive production and
cash flow returns, and conform to the Company's technical
proficiencies. As we work diligently to grow the Company's
operations, we will continue to be a transaction-driven company in
order to create greater mass, scale and value," Mr. Schnur
concluded.
Fiscal 2017 Third Quarter Results for Three Months Ended
December 31, 2016
With the closing of our recent asset acquisition from Segundo
Resources in August 2016, the Company
acquired additional estimated proved reserves of 6.3 million
barrels of oil equivalent (BOE), of which 0.2 million barrels were
crude oil reserves, 14.8 billion cubic feet were natural gas
reserves and 3.7 million barrels were natural gas liquids, as
estimate by our third-party reservoir engineers, Ralph E. Davis. Approximately 72% of the BOE was
proved producing. This added to our existing reserve base of
4.3 million BOE at March 31, 2016.
As of December 31, 2016, we had
working interests in approximately 24,389 net acres in our three
core regions, Central Oklahoma,
South Texas and West
Texas.
For the three months ending December 31,
2016, Camber reported a net loss of $4.4 million, or a loss of ($0.20) per share. The fiscal third quarter
results included one-time charges of $0.3
million of expense related to the addition of new executives
and employee retention and $1.0
million of financing fees and other charges primarily
related to closing of the Segundo Resources transaction in August
of 2016. These one-time charges impacted our third quarter
results by approximately $0.06 per
share.
Total revenues from the sale of crude oil, natural gas and
natural gas liquids for the fiscal 2017 third quarter increased to
$1.9 million compared to $0.18 million in the same period a year ago
largely reflecting the inclusion of natural gas and liquids
production related to the Segundo transaction, which added
approximately $1.4 million to
revenues. During the fiscal 2017 third quarter, Camber
produced an average of approximately 995 net BOE per day from 100
active well bores compared to 54 BOE per day in the fiscal 2016
third quarter. The average daily production rate reflected a
full quarter benefit from the acquired production blended with
Camber' existing production. Total production in the quarter
was 91,591 BOE, net, compared to 4,964 BOE in the same period last
year.
During the quarter, the Company conducted a well maintenance and
upgrade program on its wells in Oklahoma, which included the repair and/or
replacement of down-hole pumps, mechanical repairs and added
compression which more than doubled existing production on those
wells. Camber expects to continue maintenance operations and
other field enhancements on an additional fourteen wells during
calendar 2017.
Lease operating expenses (LOE) totaled $1.3 million for the fiscal 2017 third quarter,
or an average of $14.18 per barrel, a
decrease from $14.60 per barrel in
the fiscal 2017 second quarter and from $36.75 per barrel in the same period last
year.
Total general and administrative (G&A) expenses for the
fiscal 2017 third quarter were $1.3
million, which included approximately $0.3 million on one-time expenses related to
employee retention bonuses, legal and SEC filing fees, and our
office relocation. Adjusted for these special items, our
G&A expense was slightly less than $1
million compared to $0.7
million in the same period last year. In January 2017, we added two new executives to our
team in addition to field and office contractors as a result of our
Segundo asset acquisition.
Depreciation, depletion, amortization and accretion expense was
$1.3 million, or an average of
$14.05 per barrel, in the fiscal 2017
third quarter compared to an average of $15.26 per barrel in the fiscal 2016 second
quarter and $136.15 per barrel in the
same period last year.
Net interest expense in the fiscal 2017 third quarter was
$1.5 million, of which approximately
$0.8 million was a non-cash interest
expense. Net other expense was $0.9
million, which included approximately $1.0 million of one-time financing fees and
closing costs related to the Segundo transaction, partially offset
by a $0.1 million change in the fair
value of the Company's derivative liability.
The Company's Quarterly Report on Form 10-Q for the quarterly
period ended December 31, 2016 will
be filed with the Securities and Exchange Commission reflecting
these results later today.
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. We changed our name from Lucas Energy, Inc. to
Camber Energy, Inc. effective January
5, 2017. For more information, visit our website at
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
|
SELECT FINANCIAL
STATEMENTS
|
|
CAMBER ENERGY,
INC.
|
(formerly Lucas
Energy, Inc.)
|
CONSOLIDATED
BALANCE SHEETS
|
(Unaudited)
|
|
|
|
|
|
December
31,
|
|
March
31,
|
|
|
|
|
|
|
2016
|
|
2016
|
|
ASSETS
|
|
Current
Assets
|
|
|
|
|
|
|
Cash
|
|
|
$
1,980,234
|
|
$
197,662
|
|
|
Restricted
Cash
|
|
2,398,929
|
|
-
|
|
|
Accounts
Receivable
|
|
2,111,782
|
|
93,523
|
|
|
Inventories
|
|
202,677
|
|
194,997
|
|
|
Other Current
Assets
|
|
109,667
|
|
56,805
|
|
|
Total Current
Assets
|
|
6,803,289
|
|
542,987
|
|
|
|
|
|
|
|
|
|
|
Property and
Equipment
|
|
|
|
|
|
|
Oil and Gas
Properties (Full Cost Method)
|
|
100,555,959
|
|
48,518,512
|
|
|
Other Property and
Equipment
|
|
437,352
|
|
420,351
|
|
|
|
Total Property and
Equipment
|
|
100,993,311
|
|
48,938,863
|
|
|
Accumulated
Depletion, Depreciation and Amortization
|
|
(36,577,780)
|
|
(34,748,434)
|
|
|
Total
Property and Equipment, Net
|
|
64,415,531
|
|
14,190,429
|
|
Other
Assets
|
|
121,369
|
|
58,716
|
|
Total
Assets
|
|
$
71,340,189
|
|
$
14,792,132
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
Current
Liabilities
|
|
|
|
|
|
|
Accounts
Payable
|
|
$
2,690,605
|
|
$
2,423,949
|
|
|
Common Stock
Payable
|
|
23,571
|
|
71,572
|
|
|
Accrued
Expenses
|
|
768,713
|
|
494,232
|
|
|
Notes Payable, Net of
Discount
|
|
-
|
|
202,000
|
|
|
Current Portion of
Long-Term Notes Payable, Net of Discount
|
|
9,958,110
|
|
7,153,734
|
|
|
Convertible Notes
Payable, Net of Discount
|
|
-
|
|
739,817
|
|
|
Total Current
Liabilities
|
|
13,440,999
|
|
11,085,304
|
|
|
|
|
|
|
|
|
|
|
Long-term Notes
Payable, Net of Discount
|
|
33,619,385
|
|
-
|
|
Asset Retirement
Obligations
|
|
2,005,746
|
|
1,179,170
|
|
Derivative
Liability
|
|
59,388
|
|
126,960
|
|
Total
Liabilities
|
|
49,125,518
|
|
12,391,434
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
Preferred Stock
Series A, 2,000 Shares Authorized of $0.001 Par, -0- and 500 Shares Issued and
Outstanding, respectively
|
|
|
|
|
|
|
|
-
|
|
773,900
|
|
|
Preferred Stock
Series B, 600,000 Shares Authorized of $0.001 Par, 552,000 and -0- Shares Issued and
Outstanding, respectively
|
|
|
|
|
|
|
|
14,898,038
|
|
-
|
|
|
Preferred Stock
Series C, 500,000 Shares Authorized of $0.001 Par, 495 and -0- Shares Issued and
Outstanding, respectively
|
|
|
|
|
|
|
|
4,428,955
|
|
-
|
|
|
Common Stock,
100,000,000 Shares Authorized of $0.001 Par, 22,097,927 and 1,605,224 Shares Issued and
Outstanding, respectively
|
|
|
|
|
|
|
|
22,098
|
|
1,605
|
|
|
Stock Dividends
Distributable but not Issued
|
|
852,516
|
|
-
|
|
|
Additional Paid-in
Capital
|
|
115,554,060
|
|
58,591,988
|
|
|
Accumulated
Deficit
|
|
(113,540,996)
|
|
(56,966,795)
|
|
|
Total
Stockholders' Equity
|
|
22,214,671
|
|
2,400,698
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
71,340,189
|
|
$
14,792,132
|
|
|
|
|
|
|
|
|
|
|
|
CAMBER ENERGY,
INC.
|
(formerly Lucas
Energy, Inc.)
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
December
31,
|
|
|
|
|
2016
|
|
2015
|
|
Operating
Revenues
|
|
|
|
|
|
|
Crude Oil
|
|
$
484,016
|
|
$
183,705
|
|
|
Natural
Gas
|
|
636,619
|
|
-
|
|
|
NGL
|
|
790,185
|
|
-
|
|
|
Total
Revenues
|
|
1,910,820
|
|
183,705
|
|
Operating
Expenses
|
|
|
|
|
|
|
Lease Operating
Expenses
|
|
1,298,475
|
|
182,449
|
|
|
Severance and
Property Taxes
|
|
89,606
|
|
27,961
|
|
|
Depreciation,
Depletion,
|
|
|
|
|
|
|
Amortization,
and Accretion
|
|
1,286,684
|
|
204,069
|
|
|
Impairment of
Oil and Gas Properties
|
|
-
|
|
-
|
|
|
General and
Administrative
|
|
1,310,119
|
|
675,827
|
|
|
Total
Expenses
|
|
3,984,884
|
|
1,090,306
|
|
Operating
Loss
|
|
(2,074,064)
|
|
(906,601)
|
|
|
|
|
|
|
|
|
Other Expense
(Income)
|
|
|
|
|
|
|
Interest
Expense
|
|
1,457,827
|
|
51,394
|
|
|
Other Expense
(Income), Net
|
|
865,685
|
|
65,132
|
|
|
Total Other
Expenses
|
|
2,323,512
|
|
116,526
|
|
|
|
|
|
|
|
|
Net
Loss
|
|
$
(4,397,576)
|
|
$
(1,023,127)
|
|
|
|
|
|
|
|
|
Net Loss Per
Common Share
|
|
|
|
|
|
|
Basic and
Diluted
|
|
$
(0.20)
|
|
$
(0.70)
|
|
Weighted Average
Number of
|
|
|
|
|
|
Common Shares
Outstanding
|
|
|
|
|
|
|
Basic and
Diluted
|
|
21,782,632
|
|
1,463,590
|
|
|
|
|
|
|
|
|
|
The following table presents a reconciliation of Adjusted
EBITDAX to the GAAP financial measure of net income (loss)for the
periods indicated.
CAMBER ENERGY,
INC.
|
(formerly Lucas
Energy, Inc.)
|
NON-GAAP
DISCLOSURE RECONCILIATION
|
|
|
Three Months
Ended
December
31,
|
|
2016
|
2015
|
Net Income
(Loss)
|
($4,397,576)
|
($1,023,127)
|
Reconciling
items:
|
|
|
Interest
Expense, non-cash
|
802,637
|
0
|
Employee
bonuses, legal fees and other
|
318,089
|
0
|
Transaction
closing costs, net
|
957,195
|
0
|
Depreciation,
depletion and amortization
|
1,286,684
|
204,069
|
Non-cash
stock-based compensation
|
29,396
|
32,178
|
Settlement of
debt
|
(25,326)
|
0
|
Adjusted
discretionary cash flow
|
($1,028,901)
|
($786,880)
|
|
Note:
Management believes that discretionary cash flow is relevant and
useful information, which is commonly used by analysts, investors
and other interested parties in the oil and gas industry as a
financial indicator of an oil and gas company's ability to generate
cash used to internally fund exploration and development activities
and to service debt. Discretionary cash flow is not a measure of
financial performance prepared in accordance with generally
accepted accounting principles ("GAAP") and should not be
considered in isolation or as an alternative to net cash flow
provided by operating activities. In addition, since
discretionary cash flow is not a term defined by GAAP, it might not
be comparable to similarly titled measures used by other
companies.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/camber-energy-announces-fiscal-2017-third-quarter-results-300407447.html
SOURCE Camber Energy, Inc.