HOUSTON, April 27, 2017 /PRNewswire/ -- Camber
Energy, Inc. (NYSE MKT: CEI) ("Camber Energy" or the "Company")
announced that it has begun cost-cutting initiatives to
significantly reduce overall general and administrative
costs. Since the closing of the Segundo transaction in August
of 2016, Camber has incurred professional fees in addition to
increased staffing costs that have exceeded one of the restrictive
covenants in its existing loan agreement with its primary
lender.
As part of its transition process, the Company is relocating its
corporate headquarters and related operations to San Antonio, Texas from Houston, Texas. Camber has entered into
a service agreement, effective on May
1, with Enerjex Resources (NYSE MKT: ENRJ) to outsource the
management of its back-office functions for a fixed monthly
fee. These measures are expected to result in improved cost
savings and operating efficiencies for the Company. Camber is
also pursuing other strategic options to further improve its
capital structure.
During the transition period, Anthony C.
Schnur, the Chief Executive Officer of Camber Energy, will
remain with the Company and its Board of Directors to assist in the
cost-cutting process through its completion. The Company and
the Board has accepted Ken Sanders'
resignation as Chief Operating Officer as part of this process.
"We are taking the necessary steps to comply with the various
obligations set forth in the agreement with our primary lender and
to return the Company to positive cash flow generation," said
Richard N. Azar II, Chairman of the
Board.
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. The Company changed its name from Lucas Energy,
Inc. to Camber Energy, Inc. effective January 5, 2017.
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 reduce operating costs and comply with
covenants in our debt obligations; our ability to generate cash
flow to fund our operations; our ability to raise additional
capital at acceptable terms;; 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; 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
ccoale@dennardlascar.com
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SOURCE Camber Energy, Inc.