$CEI Camber Energy, Inc. CEO Letter to Shareholders
Trying to make a run up. Up 31% this morning.
SAN ANTONIO, TX / ACCESSWIRE / April 5, 2018 / Letter from Richard N. Azar, II, the CEO of Camber Energy, Inc. (Camber or the Company) to the Camber Shareholders.
To Our Shareholders:
Following the conclusion of the Company's fiscal year last week, I wanted to take this opportunity to update you on the state of the Company's business.
To that end, to date, the Company has met or exceeded nearly every operational milestone we have set out with very few exceptions. When I assumed the role of interim-CEO, the Company's primary objectives were to increase its asset base and associated revenues and decrease the Company's liabilities.
With that in mind, let's turn to our operating results.
In our effort to increase our asset base and cash flow, we completed the acquisition of nine wells in Okfuskee County, Oklahoma, in January 2018. These assets were heavily discounted as there was only one well on production with minimal output. Since we closed the acquisition, we have reworked and put into production another four wells. Within the next thirty days, funding permitting, we expect an additional four wells to come online. At that time, we expect our production to increase by over 50%.
Additionally, the Company is evaluating other workover opportunities in its Coyle field as well as in other areas nearby.
In March 2018, the Company completed its Panhandle acquisition in Hutchinson County, Texas. This acquisition includes 45 wells that can be worked over as well as 9 saltwater disposal wells and related infrastructure to handle production. The Company has been working on regulatory and permitting issues since closing and began the workover program earlier this week.
These acquisitions, as well as our leasing program, are all consistent with the Company's goal of finding undervalued assets, reworking downed equipment and maximizing efficiency to increase production and associated revenues.
In conjunction with our efforts to increase revenue, we are also working to cut our operating expenses by selling non-core assets that are a drag on our business. During the third fiscal quarter we sold the CATI subsidiary which eliminated that operational burden and reduced our overall Company debt by approximately $8 million.
Cash flow continues to be our major focus, but in January 2018, the Company resumed paying principal and interest on its bank loan with the International Bank of Commerce with the objective to pave the way to negotiate a modification and extension of the loan consistent with our operating cash flow and available financing. We are in active negotiations but have no assurance we will be successful in these negotiations.
Overall, I am happy with the progress the Company has made in increasing its assets and reducing its debts and I am extremely proud of the work performed by our management and staff in reaching these initial goals. While we still face very real challenges with our financing and cash flow needs, we continue to focus our short-term strategy on addressing these needs. I realize this is a challenging time for our company and our shareholders, and I am grateful for your patience and support.
/s/ Richard N. Azar, II
Richard N. Azar, II
CEO
Trying to make a run up. Up 31% this morning.
SAN ANTONIO, TX / ACCESSWIRE / April 5, 2018 / Letter from Richard N. Azar, II, the CEO of Camber Energy, Inc. (Camber or the Company) to the Camber Shareholders.
To Our Shareholders:
Following the conclusion of the Company's fiscal year last week, I wanted to take this opportunity to update you on the state of the Company's business.
To that end, to date, the Company has met or exceeded nearly every operational milestone we have set out with very few exceptions. When I assumed the role of interim-CEO, the Company's primary objectives were to increase its asset base and associated revenues and decrease the Company's liabilities.
With that in mind, let's turn to our operating results.
In our effort to increase our asset base and cash flow, we completed the acquisition of nine wells in Okfuskee County, Oklahoma, in January 2018. These assets were heavily discounted as there was only one well on production with minimal output. Since we closed the acquisition, we have reworked and put into production another four wells. Within the next thirty days, funding permitting, we expect an additional four wells to come online. At that time, we expect our production to increase by over 50%.
Additionally, the Company is evaluating other workover opportunities in its Coyle field as well as in other areas nearby.
In March 2018, the Company completed its Panhandle acquisition in Hutchinson County, Texas. This acquisition includes 45 wells that can be worked over as well as 9 saltwater disposal wells and related infrastructure to handle production. The Company has been working on regulatory and permitting issues since closing and began the workover program earlier this week.
These acquisitions, as well as our leasing program, are all consistent with the Company's goal of finding undervalued assets, reworking downed equipment and maximizing efficiency to increase production and associated revenues.
In conjunction with our efforts to increase revenue, we are also working to cut our operating expenses by selling non-core assets that are a drag on our business. During the third fiscal quarter we sold the CATI subsidiary which eliminated that operational burden and reduced our overall Company debt by approximately $8 million.
Cash flow continues to be our major focus, but in January 2018, the Company resumed paying principal and interest on its bank loan with the International Bank of Commerce with the objective to pave the way to negotiate a modification and extension of the loan consistent with our operating cash flow and available financing. We are in active negotiations but have no assurance we will be successful in these negotiations.
Overall, I am happy with the progress the Company has made in increasing its assets and reducing its debts and I am extremely proud of the work performed by our management and staff in reaching these initial goals. While we still face very real challenges with our financing and cash flow needs, we continue to focus our short-term strategy on addressing these needs. I realize this is a challenging time for our company and our shareholders, and I am grateful for your patience and support.
/s/ Richard N. Azar, II
Richard N. Azar, II
CEO
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