What changed in this filing

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Item 2. Properties

2024-08-26 compared with 2022-06-08 · 50 added, 76 removed, 2 unchanged (98% of the section changed)

Areas of Activities

We have invested in areas that are known to be productive, with a reasonably established production history, in order to decrease geological and exploratory risk.

Our Glasscock County, Texas properties produce oil and gas primarily from the Wolfberry, Cline and Fusselman formations and are all non-operated.

The following table summarizes our gross and net developed leasehold acreage at March 31, 2020.

Developed acreage is the number of acres that are allocated or assignable to producing wells or wells capable of production.

The Company holds no undeveloped acreage as of March 31, 2020.

Acreage in which our interest is limited to royalty and overriding royalty interests is excluded:

Glasscock and Hutchinson County, Texas

We believe we have satisfactory title, in all material respects, to substantially all of our producing properties in accordance with standards generally accepted in the oil and natural gas industry.

Production, Sales Price and Production Costs

The Company produced oil, natural gas and NGLs from 25 non-operated wells in Glasscock County, Texas during the year ended March 31, 2020.

The Company operated 35 non-producing wells in Hutchinson County, Texas during the year ended March 31, 2020, which wells are in the process of being transferred to PetroGlobe as discussed under “Item 3.

Legal Proceedings“.

The following tables represent our total production, average sales prices and average production costs for the years ended March 31, 2020 and 2019:

Net Operating Revenues:

Total Revenues

Production sales:

Crude oil (Bbls)

Effective December 1, 2023, the Company relocated its offices to 12 Greenway Plaza, Suite 1100, Houston, Texas 77046.

Through Simson-Maxwell, the Company has 7 locations in Western Canada, consisting of (i) Port Coquitlam, British Columbia;

(ii) Edmonton, Alberta;

(iii) Calgary, Alberta;

(iv) Nanaimo, British Columbia;

(v) Prince George, British Columbia;

(vi) Fort St.

John, British Columbia;

and (vii) Terrace, British Columbia.

Oil and Natural Gas Properties

Oil and Natural Gas Reserves at December 31, 2023 and 2022

As of December 31, 2023, all of our proved oil and natural gas reserves were located in the United States, in the State of Texas.

The following tables set forth summary information with respect to our proved reserves as of December 31, 2023 and 2022.

For additional information see Supplemental Information “Oil and Natural Gas Producing Activities (Unaudited)” to our consolidated financial statements in “Item 8-Financial Statements and Supplementary Data” of this Annual Report on Form 10-K.

Under SEC reporting requirements, proved undeveloped reserves include only those reserves in which the Company has current plans to develop, generally within five years.

Proved Reserves at December 31, 2023

Reserves Category

Natural Gas (MCF)

NGL (Gallons)

Total (barrels oil equivalent or Boe) (1)

Average Sales Price:

Crude Oil ($/Bbl)

Proved Reserves

Developed Non-Producing

Total Proved Reserves

Estimated Future Net Cash Flows

10% annual discount for estimated timing of cash flows

Discounted Future Net Cash Flows - (PV10) (2)

Proved Reserves at December 31, 2022

Reserves Category

Natural Gas (MCF)

Average Production Cost ($/Boe):

As of March 31, 2020, production from the Glasscock field (the Company’s only field) comprises 100% of our total proved reserves.

The production volumes for the years ended March 31, 2020 and 2019 are represented in the table below:

Hutchinson Area

Crude oil (Bbls)

Natural gas (Boe)

Glasscock County

Crude oil (Bbls)

Natural gas (Boe)

The following table presents our ownership in productive crude oil and natural gas wells at March 31, 2020.

The gross number represents the number of wells in which we have a working interest.

The net number is the sum of our net revenue interest in each well.

Hutchinson and Glasscock Counties, Texas:

Drilling Activity

In the years ended March 31, 2020 and 2019, we had no gross or net wells that were in the process of being drilled nor did we have any delivery commitments.

At March 31, 2020, we had no gross or net wells that were in the process of being drilled nor did we have any delivery commitments.

Oil and Natural Gas Reserves

Reserve Information.

For estimates of Camber’s net proved producing reserves of crude oil and natural gas, as well as discussion of Camber’s proved and probable undeveloped reserves, see “Part II - Item 8 Financial Statements and Supplementary Data – Supplemental Oil and Gas Disclosures (Unaudited)“.

At March 31, 2020, Camber’s total estimated proved reserves were 133,442 Boe of which 54,850 Bbls were crude oil reserves, 43,955 Bbls were NGL reserves and 207,823 Mcfs were natural gas reserves.

Internal Controls.

Keene, a consultant, is the technical person primarily responsible for overseeing the preparation of the reserves estimates, which means that he was primarily responsible for the input parameters of our internal reserves estimation process (which are based upon the best available production, engineering and geologic data) and provided a technical review of the veracity of the annual audit of our year end reserves by our independent third party engineers.

Keene has over 40 years of experience in oil and gas and has performed oil and gas consulting, supervision and design and analysis services for various entities in the states of Colorado, Texas, New Mexico, Wyoming, Utah and Oklahoma.

Keene graduated from Texas Tech University with a Bachelor’s of Science Degree in Petroleum Engineering in 1976.

Keene has experience with leasing large ranches, assembling small lot tracts, leasing corporate mineral interests, drafting lease terms, managing land teams, negotiating on and offsite drilling locations, pipeline easements, review of title documents, farmout and participation agreements, Texas Rail Road Commission filings, gas contracts and JIB agreements.

He also has experience with vertical and horizontal drilling supervision, well design, AFE cost estimations, well log analysis, and control, logistics, urban noise abatement and equipment routing.

The preparation of our reserve estimates is in accordance with our prescribed procedures that include verification of input data into a reserve forecasting and economic software, as well as management review.

Our reserve analysis includes, but is not limited to, the following:

Research of operators near our lease acreage.

Review operating and technological techniques, as well as reserve projections of such wells.

The review of internal reserve estimates by well and by area by a qualified petroleum engineer.

A variance by well to the previous year-end reserve report is used as a tool in this process.

SEC-compliant internal policies to determine and report proved reserves.

The discussion of any material reserve variances among management to ensure the best estimate of remaining reserves.

Qualifications of Third-Party Engineers.

For the years ended March 31, 2020 and 2019, respectively, the technical person responsible for the audit of our reserve estimates at Graves & Co.

Consulting LLC was Allen C.

Barron, who meets the requirements regarding qualifications, independence, objectivity, and confidentiality set forth in the Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information promulgated by the Society of Petroleum Engineers.

Consulting LLC is an independent firm and does not own an interest in our properties and is not employed on a contingent fee basis.

Reserve estimates are imprecise and subjective, and may change at any time as additional information becomes available.

Furthermore, estimates of oil and gas reserves are projections based on engineering data.

There are uncertainties inherent in the interpretation of this data as well as the projection of future rates of production.

The accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment.

A copy of the report issued by Graves & Co.

Consulting LLC is filed with this report as Exhibit 99.1 .

For more information regarding our oil and gas reserves, please refer to “Part II - Item 8 Financial Statements and Supplementary Data – Supplemental Oil and Gas Disclosures (Unaudited)“.

Effective October 1, 2017, the Company entered into an agreement to sublease space on a month to month basis in San Antonio, Texas at 4040 Broadway, Suite 425 from RAD2 Minerals, Ltd., an entity owned and controlled by Mr.

Azar, the Company’s former Interim Chief Executive Officer.

Monthly rent for October through December 2017 was $5,000 per month, increasing to $7,500 per month effective January 2018.

The lease agreement was terminated effective June 30, 2018.

The Company agreed under a verbal contract to lease the same space on a month-to-month basis for $2,500 per month beginning effective July 1, 2018.

Effective August 1, 2018, the Company terminated its month-to-month lease with RAD2, and entered into a month-to-month lease at 1415 Louisiana, Suite 3500 Houston, Texas 77002 with BlackBriar Advisors LLC (“ BlackBriar ”).

Pursuant to the sublease, BlackBriar is providing us, without charge, use of the office space in Houston, Texas.

BlackBriar is affiliated with the Company’s former Chief Financial Officer.

Proved Reserves

Developed Non-Producing

Total Proved Reserves

Estimated Future Net Cash Flows

10% annual discount for estimated timing of cash flows

Discounted Future Net Cash Flows - (PV10) (2)

(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 without consideration of income tax affects.

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.

Net Production, Unit Prices and Costs

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, 2023 and 2022.

All production and expense data includes the results of Mid-Con Petroleum and Mid-Con Drilling through November 5, 2023 and Petrodome through December 1, 2023, the respective dates of disposition.

Average Sales Prices

Production - Lease operating expenses

Average Cost of Production per BOE

Drilling and Other Exploratory and Development Activities

During the year ended December 31, 2023 the Company did not drill any new wells.

The Company focused primarily on preserving and maintaining existing assets and selling certain assets to pay down debt.

Maintenance included, among other things, replacing tubing and pumps, replacing heater treaters, changing compressors, repressurizing wells, repairing water line leaks, replacing chokes and other items.

Present Activities

The Company is not presently drilling any new wells.

Delivery Commitments

The Company is not currently committed to provide a fixed and determinable quantity of oil or gas in the near future under existing contracts or agreements.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K/A

Item 2. Properties