HOUSTON, July 20, 2017 /PRNewswire/ -- Camber Energy,
Inc. (NYSE MKT: CEI) ("Camber" or the "Company"), an independent
oil and gas company, announces that it filed its fiscal year-end
results for the twelve-month period ending March 31, 2017 and the filing of its Annual
Report on Form 10-K on July 14,
2017.
"As indicated in our current 10-K filing, the Company has
significant short term financial hurdles to overcome to continue
operations. The new management team is in active negotiations
addressing the issues but our independent registered public
accounting firm has expressed concern about our ability to continue
as a going concern," stated Robert
Schleizer, the Company's Interim Chief Financial
Officer.
Fiscal 2017 Annual Results
For the twelve months ending March 31,
2017, Camber reported a fiscal year net loss of $89.1 million, or a loss of $6.94 per share, compared to a net loss of
$25.4 million, or a loss of
$17.58 per share, in the twelve
months ending March 31, 2016.
Fiscal year 2017 included impairment charges related to the
full-cost write-down of its oil and gas assets and lease
expirations of $79.1 million compared
to a $21.4 million impairment charge
in the fiscal year 2016 results. Excluding for the impairment
charges, the adjusted net loss for fiscal year 2017 was
$10.0 million, or a loss of
$0.78 per share, compared to an
adjusted net loss of $4.81million, or
a loss of $2.80 per share, in fiscal
2016.
Total crude oil and natural gas revenues for the year ended
March 31, 2017 increased $4.3 million, or 448%, to $5.3 million compared to $1.0 million for the same period a year ago due
primarily to higher production volumes as a result of the
properties acquired in the Segundo transaction in August of 2016.
Crude oil production rose by 64% to 36.3 million barrels of oil
(Mbbls), and the Company produced 546 million cubic feet (Mmcf) of
natural gas and 975 Mbbls of natural gas liquids (NGLs) compared to
no natural gas or NGL production in fiscal 2016.
Lease operating expenses of $3.2
million for the year ended March 31,
2017 increased $2.5 million
from $0.7 million for the same period
a year ago, principally due to the increased expenses associated
with the asset acquisition. General and administrative
expenses (excluding share-based compensation) increased
approximately $1.5 million or 62% for
fiscal 2017 compared to the prior year.
Depreciation, depletion, amortization and accretion (DD&A)
expenses for the 2017 fiscal year increased $1.8 million primarily due to an increase
in production volumes to 224.9 million BOE compared to 22.2 million
BOE in 2016. 2017 average daily production was 616 barrels of
oil per day (BOPD) compared to 61 BOPD in fiscal 2016, all of which
was produced from the Mid-Continent region.
During the year ended March 31,
2017, the Company recorded impairments totaling $79.1 million, which represented $10.9 million related to proved properties,
$18.7 million related to unproved
properties, and $49.5 million in
conjunction with the acquisition of Mid-Continent assets, primarily
due to continued low commodity prices during the fiscal
year.
SELECTED FINANCIAL
DATA
|
|
|
|
Fiscal Year End as
of March 31
|
|
|
|
|
|
|
|
INCOME STATEMENT
($000s)
|
FYE
2017
|
|
FYE
2016
|
Net Operating
Revenues
|
$5,302
|
|
$968
|
Operating
Expenses
|
|
|
|
Lease Operating
Expenses
|
3,261
|
|
741
|
Severance &
Property Taxes
|
256
|
|
123
|
Depreciation,
Depletion & Amortization
|
2,699
|
|
880
|
General and
Administrative
|
4,044
|
|
2,501
|
Impairment of
Oil and Gas Properties
|
79,142
|
|
21,391
|
Total
|
89,402
|
|
25,636
|
Interest Expense &
Other
|
(5,037)
|
|
(782)
|
|
|
|
|
Loss Before Income
Taxes
|
(89,138)
|
|
(25,450)
|
Income Taxes
Benefit
|
15
|
|
0
|
Net Loss
|
($89,123)
|
|
($25,450)
|
|
|
|
|
Fiscal 2017 Reserves
During fiscal 2017, Camber increased its reserves by
approximately 1.4 million BOE of proved reserves. The
increase was the result of a downward revision of previous
estimates of 2.6 million BOE, offset by the purchases in place of
7.9 million BOE, which was reduced by the production volume of 3.9
million BOE. Camber had a transfer to proved non-producing
reserves on existing leases of 0.8 million BOE due to certain
properties which were previously producing, being shut-in, as they
became uneconomic due to the decrease in commodity prices.
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. Total proved undeveloped reserves (PUDs)
decreased by 2.7 million BOE to 1.4 million BOE. The proved
undeveloped reserve decrease was primarily due to the transfer of
approximately 0.2 million BOE of PUDs to probable undeveloped
reserves as there has been no development within the last five year
in addition to a reduction of approximately 1.6 million BOE due to
expiring leases.
We had 0.8 million of developed non-producing BOE, and we
transferred no amounts of proved undeveloped reserves to proved
developed reserves during the fiscal year 2017. In
addition, our plan is to convert our remaining PUD balance as of
March 31, 2017 to proved developed
reserves within five years or prior to the end of fiscal year 2022
provided that we are able to obtain adequate funding and capital
over the time period.
Using the SEC pricing methodology of an average monthly crude
oil price of $47.61 per Bbl and
natural gas price of $2.74 per
thousand cubic feet for the twelve months ended March 31, 2017, the estimated discounted future
net cash flow (PV-10) before tax expenses for Camber' proved
reserves was approximately $25.4
million. These reserves were determined in accordance
with standard industry practices and SEC regulations by the
licensed independent petroleum engineering firm of Ralph E. Davis
Associates, LLC.
|
Oil
|
|
Gas
|
|
NGLs
|
|
Total
|
|
PV-10
|
|
PV-10
/
|
|
(MBbls)
|
|
(Mmcf)
|
|
(MBbls)
|
|
(Mboe)
|
|
($mm)
|
|
BOE
|
PDP
|
312
|
|
7,4580
|
|
1,784
|
|
3,339
|
|
$ 15.4
|
|
$ 46.16
|
PNP
|
9
|
|
3,296
|
|
294
|
|
853
|
|
2.8
|
|
32.92
|
PUD
|
1,266
|
|
521
|
|
96
|
|
1,339
|
|
7.2
|
|
49.71
|
Total
|
1,587
|
|
11,275
|
|
2,175
|
|
5,641
|
|
$125.4
|
|
$47.61
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company also announced that pursuant to the disclosure
requirements of NYSE MKT Company Guide Section 610(b), its audited
consolidated financial statements for the year ended March 31, 2017, which were filed with the
Securities and Exchange Commission on July
14, 2017, contained an audit opinion from its independent
registered public accounting firm that includes an explanatory
paragraph related to the Company's ability to continue as a going
concern. Accordingly, this press release does not include any
adjustments relating to the recoverability of assets and
classification of liabilities that might be necessary should the
Company be unable to continue as a going concern.
Please refer to our Annual Report on Form 10-K for the year
ended March 31, 2017, at www.sec.gov
for complete financial statements, footnotes relating to such
financial statements, risk factors regarding the Company and a more
detailed discussion of our operational plan and results of
operations, among other matters.
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, natural gas
and natural gas liquids in the Hunton formation in Central Oklahoma in addition to the Austin
Chalk and Eagle Ford formations in South
Texas.
For more information, please visit the Company's web site at
www.camber.energy.
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, opinion, belief or forecasts of future events and
performance. A statement identified by the use of forward
looking words including "may," "expects," "projects,"
"anticipates," "plans," "believes," "estimate," "should," and
certain of the other foregoing statements may be deemed
forward-looking statements. Although Camber 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. These include risks inherent in natural gas and oil
drilling and production activities, including risks of fire,
explosion, blowouts, pipe failure, casing collapse, unusual or
unexpected formation pressures, environmental hazards, and other
operating and production risks, which may temporarily or
permanently reduce production or cause initial production or test
results to not be indicative of future well performance or delay
the timing of sales or completion of drilling operations; delays in
receipt of drilling permits; risks with respect to natural gas and
oil prices, a material decline which could cause Camber to delay or
suspend planned drilling operations or reduce production levels;
risks relating to the availability of capital to fund drilling
operations that can be adversely affected by adverse drilling
results, production declines and declines in natural gas and oil
prices; risks relating to unexpected adverse developments in the
status of properties; risks relating to the absence or delay in
receipt of government approvals or fourth party consents; and other
risks described in Camber'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 at
http://www.sec.gov.
Contact:
|
Bob
Schleizer
|
|
Interim Chief
Financial Officer
|
|
713-528-1881
|
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content:http://www.prnewswire.com/news-releases/camber-energy-announces-fiscal-year-2017-results-300491320.html
SOURCE Camber Energy, Inc.