COMMITMENTS AND CONTINGENCIES
|6 Months Ended|
Jun. 30, 2022
|COMMITMENTS AND CONTINGENCIES|
|NOTE 11 - COMMITMENTS AND CONTINGENCIES||
NOTE 11 – COMMITMENTS AND CONTINGENCIES
Legal Proceedings. From time to time suits and claims against Camber arise in the ordinary course of Camber’s business, including contract disputes and title disputes. Camber records reserves for contingencies when information available indicates that a loss is probable, and the amount of the loss can be reasonably estimated.
Maranatha Oil Matter
In November 2015, Randy L. Robinson, d/b/a Maranatha Oil Co. sued the Company in Gonzales County, Texas (Cause No. 26160). The plaintiff alleged that it assigned oil and gas leases to the Company in April 2010, retaining a 4% overriding royalty interest and 50% working interest and that the Company failed to pay such overriding royalty interest or royalty interest. The interests relate to certain oil and gas properties which the Company subsequently sold to Nordic Oil USA in April 2013. The petition alleges causes of actions for breach of contract, failure to pay royalties, non-payment of working interest, fraud, fraud in the inducement of contract, money had and received, constructive trust, violation of theft liability act, continuing tort and fraudulent concealment. The suit seeks approximately $100,000 in amounts alleged owed, plus pre-and post-judgment interest. The Company has filed a denial to the claims and intends to vehemently defend itself against the allegations.
Litigation as a Result of “Short Report”
The Company was the target of a “short” report issued by Kerrisdale Capital in early October, 2021, and as a result of such short report there were actions (including two derivative actions) and/or complaints commenced or filed, as applicable, against the Company, its officers, directors and certain former directors by or on behalf of certain shareholders of Camber in connection with losses alleged to have been suffered by the shareholders. The Company and its management, including former directors, have retained the firm of Baker Botts LLP to defend the actions, and deny the allegations contained in the claim(s).
The entire disclosure for commitments and contingencies.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef