HOUSTON, May 2, 2017 /PRNewswire/ -- Camber
Energy, Inc. (NYSE MKT: CEI) ("Camber Energy" or the
"Company") previously announced on February
24, 2017 that it, together with its financing partner, Jaffe
Energy, Inc. ("JEI") via Camber's subsidiary, Camber Permian II LLC
("CPII"), had entered into a definitive Purchase and Sale Agreement
("PSA") with private sellers to acquire oil and gas leases covering
approximately 13,000 net acres in the Permian Basin for a drilling
project known as the "Arrowhead Project."
Effective May 1, 2017, JEI
rescinded its funding and formally withdrew from CPII.
Contemporaneously, CPII assigned its rights and interests in the
PSA and Arrowhead to an undisclosed, private oil and gas company
(the "OG Co"). As consideration for assigning the PSA, CPII
reserved (i) the right to a 30% interest acquired under the PSA in
an existing well on Arrowhead, subject to work necessary to bring
it on production, and (ii) an optional right to purchase 30% of the
remaining properties comprising the Arrowhead project for
$2.7 million at a future date after
two wells are drilled thereon by OG Co, plus CPII's proportionate
share of the costs of all lease extensions and renewals that are
acquired by OG Co . CPII's right to exercise this option is
subject to its ability to obtain funding necessary to close the
transaction and to fund its share of participation in future
Arrowhead drilling activities.
Richard Azar, the Company's
Chairman of the Board, said, "Camber is appreciative of JEI for
working with the Company towards an effort to acquire Arrowhead.
We understand, however, that JEI has decided to prioritize
its other investment options at this time. Although Camber
would have preferred to maintain control over the Arrowhead
Project, we are very pleased to have reached this assignment
resolution that allows the Company to retain the opportunity to
invest in the project at a future date."
About Camber Energy, Inc.
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, and on April 27, 2017, Camber announced that it would be
relocating its corporate headquarters to San Antonio, Texas.
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 obtain the funds necessary to participate
in future drilling opportunities at Arrowhead; 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.