Camber Energy Inc. (NYSE MKT: CEI) said June 5 that Anthony C. Schnur resigned as CEO and a board member of the company, which is currently undergoing an overhaul to improve its capital structure.
Effective immediately, the board of directors of Camber named Richard N. Azar II, formerly chairman of the board, as interim CEO. The company also appointed Robert Schleizer as interim CFO.
Schleizer has more than 30 years of financial and operational experience serving private and public companies in financial and organizational structuring, crisis management, acquisitions and divestitures, and equity and debt financings across multiple industries, according to the company release.
"On behalf of the board, we would like to thank Tony for his leadership and wish him the best in his future endeavors," Fred S. Zeidman, chairman of Camber Energy, said in a statement. "We would also like to thank Messrs. Azar and Schleizer for stepping in on an interim basis to quickly deliver on our financial improvement initiatives while working to strengthen our company, drive cash flow and create value for our shareholders. Camber's board and management team are committed to taking immediate and rapid action to streamline the company, which is consistent with its new strategic plan to improve its capital structure and business model."
Schleizer is a co-founder of BlackBriar Advisors LLC, a business renewal and acceleration firm, where he has served as managing partner since 2010. Prior to BlackBriar, he provided restructuring and refinancing financial advisory services as a managing director for BBK and as a partner at Tatum LLC. He holds a Bachelor of Science in Accounting from Arizona State University and is a Certified Insolvency Restructuring Advisor and Certified Turnaround Professional.
Camber, formerly Lucas Energy, started 2017 by entering one of the hottest basins in the U.S.
The company said Jan. 3 it purchased mineral acreage targeting the San Andres horizontal play in the Central Basin Platform—marking its entrance into the Permian. To reflect a planned shift from its Austin Chalk and Eagle Ford roots, the company also changed its name to Camber Energy, effective Jan. 5.
On Feb. 24, Camber announced plans to expand its position in the Permian Basin with the acquisition of 13,000 net San Andres acres known as the Arrowhead Project for $11.03 million.
The company said the Arrowhead acquisition was to be initially 100% funded by Jaffe Energy Inc. (JEI), a closely-held, newly-formed investment vehicle. However, effective May 1, JEI rescinded its funding and formally withdrew from Camber's subsidiary.
Contemporaneously, Camber assigned its rights and interests in the purchase and sales agreement and Arrowhead to an undisclosed, private oil and gas company.
In April, Camber announced it launched cost-cutting initiatives due to increased professional fees and staffing costs following the closing of a $80.7 million acquisition of Oklahoma assets in August 2016 that caused the company to exceed one of the restrictive covenants in its existing loan agreement with its primary lender.
As part of its transition process, Camber said it will relocate its corporate headquarters and related operations to San Antonio from Houston. The company also entered into a service agreement, effective May 1, with Enerjex Resources Inc. (NYSE MKT: ENRJ) to outsource the management of its back-office functions for a fixed monthly fee.
Camber said it expects these measures to result in improved cost savings and operating efficiencies for the company. The company is also pursuing other strategic options to further improve its capital structure, the release said.
"We are taking the necessary steps to comply with the various obligations set forth in the agreement with our primary lender and to return the company to positive cash flow generation," Azar said in an April 27 statement.
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