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Natural gas refineries are common within the Oklahoma region, because of the large amount of viable oil wells spread across its territory.
Following the company’s move into the Midcontinent area, Lucas Energy will become Camber Energy Inc. in the near future, after the completion of a massive asset acquisition deal. The company has made a cash, debt and equity deal with 21 different individuals or entities in the hopes of boosting its market stock value as well as spreading its reach further across the US.
The assets included in this deal are mainly in the Oklahoma region, accounting for over 114 oil producing wells that give around 1,200 barrels of oil on a daily basis. The majority of acres purchased are in the Hunton area, around 9,000 net acres. The company has already identified 40 possible well locations, bringing the total amount of production to 5.4 million boe, comprised of 6% oil, 47% natural gas liquids, or NGL, and 47% natural gas.
After this deal was agreed upon, Lucas’ market shares more than doubled, benefitting from a 160% boost, trading at $4.33 per share. Their shares have an average of $6.23, ranging from$1.33 to $11.35 over the past 52-week period.
The purchase agreement comes with an added $31.35 million commercial bank debt and 552,000 convertible stock shares. Lucas will issue a 13 million amount of common stock shares and pay $4.9 million in cash towards the complete purchase of the 21 entities. After this process will complete, the company will be rebranded under the Camber Energy name.
In regards to the company’s leadership, the current CEO will remain in his seat while the purchased entities are allowed to place 3 representatives in the board of directors. One of these seats is allegedly reserved for Richard N. Azar II, because of the fact that he is the principal manager and seller of the territories gained through this transaction. He has retained his post for over 20 years, being the owner of Altex Industries and several other companies from the oil and gas sector. He will more than likely be placed in the executive chairman seat at the new Camber Energy Inc.
Once the deal was undergone, with the acquisitions nearing completion, Lucas’ shares increased once again, reaching $7.95 at 1:00 PM EST. The amount of shares being traded suffered from a massive boom as well, with over 10.5 million traded shares, miles ahead when compared to their usual volume of 10.000.
Because of their newly founded strength, Camber has gained an increased credibility in regards to investors’ view of their financial situation. Their shares will keep growing as the company will continue its expansion into the Midcontinent, establishing their future standing accordingly.
Taking into account the fact that Lucas Energy will become Camber Energy Inc. in the near future, with the added boon in market shares and net worth, the company has gained a massive boost when compared to its previous market viability. But given the fact that the US will focus more on renewable energy in the detriment of fossil fuel sources, only time will tell if the newly formed Camber will manage to stay afloat in the following decade.
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