Camber Energy Inc (CEI)

A. Company Overview

Camber Energy Inc. is a growth-oriented, diversified energy company based primarily in Houston, Texas. It focuses on providing custom energy and power solutions to commercial and industrial clients throughout North America. The company operates through various majority-owned subsidiaries and holds significant intellectual property rights in multiple innovative technologies aimed at enhancing the energy landscape, particularly in the realms of clean energy, waste treatment, electric transmission, and oil properties.

B. Business Segments

Custom Energy and Power Solutions

Camber's strategy includes providing bespoke energy solutions tailored to meet the specific needs of commercial and industrial clients. A pivotal acquisition in this segment was the purchase of approximately 60.5% of Simson-Maxwell Ltd. on August 6, 2021. Simson-Maxwell, a well-established Canadian corporation with over 80 years of operational experience, specializes in the manufacturing and supply of power generation products and services. The offerings encompass a range of clean-tech energy solutions, including:

• Combined Heat and Power (CHP) systems
• Tier 4 final diesel and natural gas industrial engines
• Renewable energy sources, such as solar and wind
• Energy storage solutions
• A comprehensive line of electrical control equipment, which includes switchgear and power generation production controls.

Simson-Maxwell supports its operations through seven service branches, facilitating maintenance arrangements for a diverse set of clients.

Clean Energy and Carbon Capture System

In a bid to embrace cleaner energy technologies, Camber entered into a licensing agreement with ESG Clean Energy, LLC in August 2021 to utilize its patent rights related to the ESG Clean Energy System. This system is primarily aimed at the generation of electricity while capturing carbon dioxide emissions. Key technological patents involved in this system cover:

• Bottoming cycle power systems
• Systems for carbon dioxide capture and product generation

The ESG Clean Energy System aims to produce 100% clean energy from internal combustion engines while capturing CO2 without compromising efficiency. This includes an innovative exhaust heat exchange process designed to optimize energy output.

Medical Waste Disposal System Using Ozone Technology

In January 2022, Camber acquired a 51% interest in Viking Ozone Technology, which possesses intellectual property rights to an ozone-based medical and biohazard waste treatment system. This technology presents a sustainable alternative to traditional waste disposal methods like incineration. Its design allows treated waste to be classified as renewable fuel for waste-to-energy facilities globally. Simson-Maxwell has been designated the exclusive manufacturer of this system.

Open Conductor Detection Technologies

In February 2022, Camber invested in Viking Sentinel Technology and Viking Protection Systems, acquiring a joint 51% interest. These entities own proprietary electric transmission line detection technologies that significantly enhance public safety by detecting faults in transmission lines. This capability is instrumental in mitigating fire risks associated with electrical failures and contributes to improved infrastructure reliability.

Oil and Gas Properties

As of December 31, 2023, Camber holds leasehold interests in oil properties located in the Cline and Wolfberry formations in Texas. The company has been recalibrating its asset portfolio by engaging in strategic divestitures in 2023, which resulted in the sale of oil and gas assets in Kansas and Texas for significant gross proceeds. Importantly, these transactions resulted in net gains that influenced the company's financial positioning moving forward.

C. Recent Transactions and Mergers

A significant recent development is the completed merger with Viking Energy Group, Inc., on August 1, 2023, where Viking became a wholly-owned subsidiary of Camber. This merger allowed for the integration of Viking's operations with Camber's existing portfolio, creating a more robust entity within the energy sector.

The merger also affected shareholder dynamics, with a substantial issuance of shares to facilitate the exchange of Viking's common and preferred stock for Camber's securities. As a result, organizational and capital structures have been readjusted to reflect this consolidation.

D. Intellectual Property Portfolio

Camber's focus on innovative energy solutions is underscored by its extensive intellectual property portfolio. This includes not only patents related to clean energy and waste treatment but also technologies designed for enhancing the stability and efficiency of electric distribution systems. The strategy to monetize these intellectual properties through various means, including sales, leases, and sub-licensing, is a critical aspect of Camber's operational framework.