Viking Extinguishes $18.9 Million in Debt

Rhea-AI Summary

Viking Energy Group, Inc. (OTCQB:VKIN) announced the completion of a significant equity transaction with its majority shareholder, Camber Energy, Inc. (NYSE American: CEI), involving an $18.9 million stock purchase. This deal eliminates $18.9 million of Viking's debt, thereby strengthening the equity position of both companies. This follows a prior $20.1 million transaction between the two firms in December 2020. The CEO noted that these transactions pave the way for a potential merger and mark a positive start to 2021.

Positive

• Completed $18.9 million equity transaction with Camber Energy.
• Eliminated $18.9 million debt, enhancing both companies' equity positions.
• Sets the stage for a potential merger between Viking and Camber.

Negative

• None.

Closes $39 Million in Equity Transactions Since Dec. 23/20

HOUSTON, TX / ACCESSWIRE / January 14, 2021 / Viking Energy Group, Inc. (OTCQB:VKIN) ("Viking" or the "Company") is pleased to announce the completion of another deal with Camber Energy, Inc. (NYSE American:CEI) ("Camber"), its majority shareholder, pursuant to which Camber purchased $18.9 million worth of common stock of Viking. In exchange for the shares of Viking, Camber agreed to issue 1,890 restricted shares of Camber's Series C Redeemable Convertible Preferred Stock to a noteholder of Viking resulting in the extinguishment of $18.9 million of debt at the Viking level. The acquisition and debt cancellation transactions, dated as of December 31, 2020 (collectively, the "Year End Transactions"), are separate from the $20.1 million transaction completed between Camber and Viking on December 23, 2020 (the "Initial Acquisition").

James Doris, President & CEO of the two companies commented, "This transaction further strengthens the relationship between Camber and Viking and moves us one step closer toward a full combination of the two entities. Moreover, extinguishing the $18.9 million of debt improves the equity position of both companies. This is a great start to 2021."

Additional details regarding the Year End Transactions were included in Viking's and Camber's Current Reports on Form 8-K filed with the Securities and Exchange Commission ("SEC") on January 13, 2021, and are available under "investors" - "SEC filings" at www.vikingenergygroup.com and www.camber.energy. Additional details regarding the Initial Acquisition were included in Viking's and Camber's Current Reports on Form 8-K filed with the SEC on December 28, 2020 and December 24, 2020, respectively, and are available under "investors" - "SEC filings" at www.vikingenergygroup.com and www.camber.energy.

About Viking:

Viking is an independent exploration and production company focused on the acquisition and development of oil and natural gas properties in the Gulf Coast and Mid-Continent region. The company owns oil and gas leases in Texas, Louisiana, Mississippi and Kansas. Viking targets undervalued assets with realistic appreciation potential.

About Camber:

Based in Houston, Texas, Camber Energy (NYSE American: CEI) is a growth-oriented, independent oil and gas company engaged in the development of crude oil, natural gas and natural gas liquids in Texas and Louisiana. For more information, please visit the company's website at www.camber.energy.

Forward-Looking Statements

This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Any statements that are not historical facts contained in this press release are "forward-looking statements", which statements may be identified by words such as "expects," "plans," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the fluctuation of global economic conditions or economic conditions with respect to the oil and gas industry, the COVID-19 pandemic, the performance of management, actions of government regulators, vendors, and suppliers, our cash flows and ability to obtain financing, competition, general economic conditions and other factors that are detailed in Camber's and Viking's respective filings with the Securities and Exchange Commission. We intend that all forward-looking statements be subject to the safe-harbor provisions.

Contact Information
Investors and Media:
Tel. 281.404.4387 (ext.3)
IR@vikingenergygroup.com

SOURCE: Viking Energy Group, Inc.

View source version on accesswire.com:
https://www.accesswire.com/624269/Viking-Extinguishes-189-Million-in-Debt

FAQ

What was the amount of the recent equity transaction between Viking Energy and Camber Energy?

Viking Energy completed an $18.9 million equity transaction with Camber Energy.

How much debt did Viking Energy extinguish as a result of the transaction?

Viking Energy extinguished $18.9 million of debt through the equity transaction.

What is the significance of the equity transaction for Camber Energy (CEI)?

The equity transaction strengthens Camber Energy's position and may lead to a merger with Viking Energy.

When was the debt cancellation and equity transaction completed?

The debt cancellation and equity transaction were completed as of December 31, 2020.