Good Evcening Traders,
OUR NEW PROFILE IS: CEI
We have a bit of a hot streak going on right now. We are looking to continue it with a hot new NYSE listed deal that has some liquidity and volatility.
This next one has everything that we are looking for.
Turn your attention to CEI
Focusing on the Core: Areas, Competency and Strengths
Camber Energy continues to exploit the development and production of oil, natural gas liquids and natural gas from its existing and potential asset base. We are following a strategic path of acquiring properties in areas with geology and returns where we can leverage our technical competence, knowledge, and database.
Minimized Geological Risks and Low Entry Costs
Our active development is concentrated in plays with low geological risk, putting us in an enviable position when combined with excellent well control, statistically predictable results, low cost of entry and long-lived reserves.
Our well-positioned Oklahoma play represents robust potential from our liquids-rich, low-decline reserves. The Hunton formation is a limestone play characterized largely by high-quality natural gas and liquids production. Camber controls approximately 10,000 net acres across Lincoln, Logan and Payne counties, and the majority of our undeveloped acreage is held by production (HBP).
In addition to the drilling locations that we have identified in the Hunton, we are reviewing other potential producing horizons and have the opportunity to expand our leasehold in additional prospective formations to the east.
Oklahoma Delivers Long-Term Opportunity
Our plays in Twin Cities and Coyle Field offer a very attractive, low decline and highly expandable operational interest. With a high BTU content representing 53% of the product mix and 1,200 BOE average daily production as of December 2015, these small, niche assets also represent a strong, long-lived reserve base.
Breaking New Ground in Technically Familiar Areas
Since the acquisition of the Segundo assets in August 2016, the Company has sought an opportunity to expand its de-watering expertise to another productive formation. For more than nine months, the Company evaluated seismic, geologic, and other technical data provided by the Texas Railroad Commission and other industry sources and, in January 2017, acquired a leasehold position in an area of mutual interest (AMI) with a privately-held independent oil and gas company (“Partner”). Multiple acreage targets in the AMI have already been mutually identified, and the Company and the Partner plan to secure additional leases over the term of the agreement.
The San Andres is found at relatively shallow depths and has similar attributes to the Company’s de-watering Hunton play in Oklahoma. Camber Energy believes it has certain advantages in initiating a development program in the San Andres. Both the Hunton and San Andres are carbonates with relatively high initial water saturations where the production profile appears to be optimized by a de‑watering process which slowly de‑pressurizes the formation allowing fuller depletion of the reservoir. Camber Energy will apply its twenty plus year technical evolution and knowledge of the Hunton to its development and production of the San Andres. The play is lesser known than the nearby Spraberry and Wolfcamp formations in the Midland Basin, largely because the horizontal development of the San Andres has been dominated by private E&P companies to date, many of which are backed by leading private equity firms.
Since its discovery in the mid-1950s, the San Andres formation in the Central Basin Platform has produced approximately 1.9 billion of cumulative equivalent barrels of oil at depths averaging 4,500 feet, according to the Bureau of Economic Geology. Recent wells drilled in the horizontal San Andres have averaged approximately 400 to 700 BOE per day, with the estimated potential to deliver returns ranging 45% to 95% under a WTI oil price scenario of $50/bbl to $60/bbl, respectively.
Significant drilling inventory
We have identified more than 40 drilling locations in the Hunton formation and have Prue Sand development locations under review.
Significant drilling and development potential
Our well-positioned Held by Production (HBP) acreage allows for the aggressive expansion of our working interests via added forced pooling and additional leasing. Additionally, there are further expansion opportunities in formations beyond the existing leasehold.
Azur and team have cut the net loss at CEI from ($2.80) in fiscal year end March 31, 2016 to just ($.78) in FYE 2016. Revenue for FYE 2017 was up 448% and oil production was up 64%. The company produced significant volumes of natural gas, and natural gas liquids in FYE 2017; they produced zero of those products in FYE f2016.
During the first half of 2018, the company plans to drill four new wells adjacent to their existing wells in the Hunton formation in Oklahoma. During the second half of 2018, they expect to drill an additional four to five new wells in this same area, and perhaps one well in the Permian in West Texas.
Azur has stated, that if his plan comes to fruition (and it has so far), CEI will be generating $1 million of EBITDA per month by the end of 2018.
At year-end on March 31, 2017, Camber’ estimated net proved crude oil and natural gas reserves were approximately 5.6 million BOE, of which 3.4 million BOE were proved developed reserves. The value of Camber’s proved reserves, using standardized industry methods, was approximately $25.4 million at March 31, 2017.
So, who is this “team” at CEI we referred to above? Richard Azar-CEO, has over 30 years of experience in the energy sector and has been involved in drilling over 1,400 wells since 1982. Robert ”Bob” Schleizer is the company’s CFO, and he has over 30 years of financial and operational experience and is a certified turnaround professional. Donnie Seay-Director is a seasoned industry veteran who has worked with Azar on projects including, the Hunton formation in the Lincoln, Logan and Payne counties of Oklahoma, and the Sam Andres formation in the Permian formation in West Texas.
The “team” is a virtual tripod of seasoned turnaround professionals pushing CEIupward.
Camber Energy Announces Well Production Results
SAN ANTONIO, TX / ACCESSWIRE / October 30, 2017 / Camber Energy, Inc. (NYSE American: CEI)(the “Company” or “Camber”), based in San Antonio, Texas, a growth-oriented, independent oil and gas company engaged in the development of crude oil, natural gas and natural gas liquids in the Hunton formation in Central Oklahoma and on the San Andres formation in the Permian Basin, of Texas, announced production updates today:
The recompletion of the 5th well, in a six well recompletion program in the Coyle Field, located in Payne County, Oklahoma, was completed on the 23rd of October. To date, actual recompletion costs are approximately 45% below estimates, while production levels are significantly above projections. The 6th, and final well in the field, should be completed within the next few days, commencing production by end of month.
“Camber is currently negotiating a renewal of a long term purchase agreement with its midstream buyer for all of the Coyle Field production. The contract is expected to include a stair step incentive to the Company for higher volumes. The Company anticipates realizing a meaningful increase in revenues in the coming weeks and months once the NGL dominate production in this field is produced and sold downstream,” stated Richard N. Azar II, the interim CEO of Camber. “The contract renewal should enhance the Company’s ability to maximize revenues and incentivizes to actively move forward with a geologically sound drilling program.”
The Coyle field is a Hunton formation de-watering program that produces light oil, natural gas and abundant natural gas liquids. Dewatering operations in the Coyle Field began in 1999. According to published reports, remaining gross Proved Developing Producing (PDP) reserves are estimated to be approximately: 23,530 barrels (Mbbl) of oil, 3,500 million cubic feet (MMcf) of gas, and 813,710 barrels of Natural Gas Liquids (NGL). The wells in this field are at an average depth of 4,500 feet, and vary with single and dual laterals per well. Sustained average total wellhead production levels are expected to range from 2.3 to 3 million cubic feet per day (MMcfd) with 1,525 average British Thermal Unit (BTU) gas.
About Camber Energy, Inc.: Based in San Antonio, Texas, Camber Energy (NYSE American: CEI) is a growth-oriented, independent oil and gas company engaged in the development of crude oil, natural gas and natural gas liquids in the Hunton formation in Central Oklahoma in addition to anticipated project development in the San Andres formation in the Permian Basin. For more information, please visit the Company’s website at www.camber.energy.
News & Analysis
|Nov 14, 2017||CORRECTION: Camber Energy, Inc. Sets Date For 2018 Annual Meeting of Stockholders||ACCESSWIRE|
|Nov 13, 2017||Camber Energy, Inc. Sets Date For 2018 Annual Meeting Of Stockholders||ACCESSWIRE|
|Nov 8, 2017||Camber Energy’s Compliance Plan Accepted By The NYSE American||ACCESSWIRE|
|Nov 2, 2017||360 Blockchain Inc. Announces Execution of Non-Binding Letter of Intent for Proposed 60% Acquisition of SV CryptoLab in Silicon Valley||FSCwire|
|Oct 30, 2017||Camber Energy Announces Well Production Results||ACCESSWIRE|
|Oct 23, 2017||Camber Energy Announces New Production Goals||ACCESSWIRE|
|Oct 19, 2017||Camber Energy offers strategic plan, names Schleizer full-time CFO||Seeking Alpha|
|Oct 18, 2017||Camber Energy, Inc. CEO Letter to Shareholders||ACCESSWIRE|
|Oct 11, 2017||Camber Energy, Inc. Receives Noncompliance Notice from NYSE American – Announces Measures to Regain Compliance||ACCESSWIRE|
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