Houston’s Camber Energy Inc. has agreed to purchase interests in oil and gas assets from privately owned companies for $69 million, the company said on Dec. 27.
The assets will generate $55 million in annual gross revenues, Camber said in a news release.
The location of the assets was not disclosed. The sellers are Brothers Investments LLC, Lake Boeuf Investments LLC, Bass TMJ LLC and James III Investments LLC, according to Securities and Exchange Commission (SEC) filings.
The deal includes working interests in approximately 169 proved, producing oil wells averaging about 2,000 net bbl/d of oil. Camber will also acquire 174 proved, non-producing wells and 12 proved undeveloped well locations, the company said. The company will also acquire related equipment and other tangible personal property.
Camber said the sellers’ internal estimates of remaining oil reserves based on recent NYMEX and other factors indicate a total proved reserve value, on a PV10 basis, of approximately $185 million as of Jan. 1, 2023.
The purchase is subject to adjustments, and at the sellers’ election up to no more than 80% of the purchase price will be made in cash at close. The balance will be paid with Camber convertible preferred stock.
The deal is set to close on March 1, according to SEC filings.
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