Camber Energy gained early Friday after the oil and gas company said it has started cost-cutting initiatives to significantly reduce overall general and administrative costs. Shares were up 9% at $0.39 per share in early Friday trading. Since the closing of the Segundo deal last August, Camber has incurred professional fees in addition to increased staffing costs that have exceeded one of the restrictive covenants in its existing loan agreement with its primary lender.
As part of its transition process, the company is relocating its corporate headquarters and related operations to San Antonio, Texas from Houston, Texas. Camber has entered into a service agreement, effective on May 1, with Enerjex Resources (ENRJ) to outsource the management of its back-office functions for a fixed monthly fee.