CAMBER ENERGY, INC. 10-K

Item 2. Properties Effective December 23, 2020, the Company relocated its offices to 15915 Katy Freeway, Suite 450, Houston, Texas 77094, the current registered office of Viking, consolidating all administrative functions in one location. Oil and Natural Gas Properties Current Operations and Business Information - Camber As of December 31, 2022, the Company had leasehold interests (working interests) in properties producing from the Cline and Wolfberry formations, which were producing an average of approximately 17 net barrels of oil equivalent per day (“ BOEPD ”) from 18 active well bores. The ratio between the gross and net production varies due to varied working interests and net revenue interests in each well. Our production sales totaled 6,353 BOE, net to our interest, for the year ended December 31, 2022. At December 31, 2022, Camber’s total estimated proved producing reserves were approximately 71,560 BOE, of which 43,040 Bbls were crude oil and NGL reserves and 171,120 Mcf were natural gas reserves. 42 Table of Contents The following tables set forth summary information with respect to Camber’s proved reserves as of December 31, 2021. Reserves Category Crude Oil (BBLs) NGL (BBLs) Natural Gas (MCF) Total Proved (BOE) (1) Proved Reserves Developed 43,040 - 171,120 71,560 Developed Non-Producing - - - - Undeveloped - - - - Total Proved Reserves 43,040 - 171,120 71,560 Estimated Future Net Cash Flows $ 3,580,270 10% annual discount for estimated timing of cash flows (1,692,970 ) Standardized Measure of Discounted Future Net Cash Flows - (PV10) (2) $ 1,887,300 (1) - BOE (barrels of oil equivalent) is calculated by a ratio of 6 MCF to 1 BBL of Oil (2) - PV-10 represents the discounted future net cash flows attributable to our proved oil and natural gas reserves discounted at 10%. PV-10 of our total year-end proved reserves is considered a non-US GAAP financial measure as defined by the SEC. We believe that the presentation of the PV-10 is relevant and useful to our investors because it presents the discounted future net cash flows attributable to our proved reserves. We further believe investors and creditors use our PV-10 as a basis for comparison of the relative size and value of our reserves to other companies. The following table presents certain information with respect to oil and natural gas production attributable to our interests in all of our properties in the United States, the revenue derived from the sale of such production, average sales prices received and average production costs during the years ended December 31, 2022 and 2021. Unit of December 31, December 31, Measure 2022 2021 Production Oil Barrels 3,966 4,242 Natural Gas Mcf 14,323 13,067 NGL Gallons 161,642 131,048 BOE 10,202 9,449 Sales Oil Barrels $ 372,046 $ 273,234 Natural Gas Mcf 79,719 40,186 NGL Gallons 145,490 87,802 $ 597,255 $ 401,222 Average Sales Prices Oil Barrels $ 93.81 $ 64.41 Natural Gas Mcf $ 5.57 $ 3.08 NGL Gallons $ .90 $ .67 Production - Lease operating expenses $ 173,327 $ 134,684 Average Cost of Production per BOE $ 16.99 $ 14,25 43 Table of Contents Drilling and other exploratory and development activities During the years ended December 31, 2022 and 2021, the Company had no gross or net wells that were in the process of being drilled, nor did we have any drilling plans or delivery commitments.