HOUSTON, Feb. 7, 2017 /PRNewswire/ — Camber Energy, Inc. (NYSE MKT: CEI) (“Camber Energy” or the “Company”), an independent oil and gas company with operations in Texas and Oklahoma, announced today that it has completed the previously-announced acquisition of a leasehold position in the Permian Basin in Texas.
In December 2016, Camber Energy formed an area of mutual interest (“AMI”) with a privately-held, Houston, Texas-based oil and gas holding company (“the Partner”) in the Central Basin Platform of the Permian Basin, targeting approximately twenty thousand (20,000) net mineral acres for acquisition. The initial leasehold is comprised of 16,322 gross, or 3,630 net, mineral acres. With this transaction, Camber now owns a 90% working interest in the properties and the ability to access to the Partner’s regional, technical database, including its core sample and log libraries. The Company paid $1.43 million for the initial leasehold and will have operation control of the properties.
Upon completion of its due diligence and proof of concept, the Company selected this transaction to open a new core area targeting the San Andres formation. The San Andres is found at relatively shallow depths, averaging 4,800 feet, and has produced approximately 6 billion barrels of oil, of which two billion barrels have been produced from the Central Basin Platform. Since the first horizontal well was drilled in the Residual Oil Zone of the San Andres in 2014, over 100 wells have been drilled to date.
The San Andres has similar attributes to the Company’s de-watering Hunton play in Oklahoma, and a recent technical article regarding the de-watering and de-pressuring of relatively high water saturated carbonates outlines this concept (please refer to https://www.spe.org/en/jpt/jpt-article-detail/?art=2617.) This process, pioneered by our Chairman, Richard N. Azar, while at Altex Resources, is used to produce large quantities of oil and gas from the Hunton formation, and is now being applied to the horizontal San Andres in the Permian Basin’s Central Basin Platform.
“We are pleased to have finalized this transaction for our Company, which solidifies our entry into the prolific Permian Basin in a way that is technically consistent with our internal competencies,” said Anthony C. Schnur, Chief Executive Officer of Camber Energy. “We believe that we have certain advantages in initiating a development program in the San Andres, and the Company plans to apply its 20-plus year knowledge of the Hunton development and evolutionary production techniques to the San Andres formation where we expect to grow our leasehold position. We have already identified multiple locations on which to expand our leasehold position beyond this initial commitment, and we plan to commence a six-well drilling program in late 2017 should our leasing efforts stay on track. This transaction positions Camber Energy for a high-growth trajectory, following the prolonged industry downturn. We remain committed to building shareholder value through field re-development, exploitation, drilling and strategic asset acquisitions.”
To learn more about the Company and our strategy please visit our website where we have posted an updated Investor Presentation.
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. For more information, please visit www.camber.energy.