San Antonio’s Camber Energy selling most of its land and unloading $37 million in debt
Camber Energy will sell most of its land and $37 million in debt for $100 to a company run by its former CEO.
The San Antonio-based oil and gas company entered an agreement to sell nearly 51,000 acres of land in Oklahoma — almost all of its nearly 58,000 acres held in the state — for $100 to N&B Energy LLC, a company affiliated with Camber Energy’s former CEO Richard Azar II. The sale included the assumption of $36.9 million in debt that Camber Energy had defaulted on with Laredo-based International Bank of Commerce, commonly known as IBC.
The agreement was detailed in a Securities and Exchange Commission filing from July 12.
The company will continue to operate some oil and gas assets in Oklahoma, but the majority of its acreage will now be in West Texas, where it holds more than 20,000 acres in Glasscock County.
Camber Energy, which was formerly known as Lucas Energy, has struggled with the debt payments on the IBC loan it received in August 2016. IBC required monthly payments of $425,000 or half of Camber Energy’s revenue, whichever was greater, to pay off the loan. Camber Energy received a notice of default from IBC regarding the loan payments in September 2017.
The company says if the agreement is completed it will eliminate the $425,000 a month payment to IBC.
On May 25, Azar resigned from Camber Energy and was paid a severance of $150,000 to be paid in three installments of $50,000 through Aug. 1. In an SEC filing, the company said the resignation “was not due to a disagreement with the company or in connection with any matter relating to the company’s operations, policies or practices.”
Louis G. Schott was appointed as Camber Energy’s interim CEO.
The oil and gas company is also in noncompliance with NYSE American, its listing stock exchange. NYSE American listed three requirements that Camber Energy is deficient on, all which included equity of less than $6 million and years of losses.
Camber Energy’s stock was trading below 49 cents a share as of Monday morning.
The deal with N&B Energy is “a major step towards improving the company’s balance sheet and regaining compliance with the continued listing standards of the NYSE American,” Schott said.
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