Merger of Camber Energy Inc and Viking Energy Group Inc

6 Months Ended

Jun. 30, 2024

Merger of Camber Energy Inc and Viking Energy Group Inc

Merger of Camber Energy, Inc. and Viking Energy Group, Inc.

Note 5. Merger of Camber Energy, Inc. and Viking Energy Group, Inc.

As discussed in Note 1, the Merger has been accounted for as a reverse acquisition with Viking treated as the acquiror of Camber for financial accounting purposes.

The transaction consideration transferred by the accounting acquirer for its interest in the accounting acquiree is based on the number of equity interests the legal subsidiary would have had to issue to give the owners of the legal parent the same percentage equity interest in the combined entity that results from the reverse acquisition. This was determined as follows:

Number of Viking shares of common stock outstanding at merger date		119,218,508
Viking shareholder ownership interest in the merged entity		64.9	%
Grossed up number of shares		183,699,488
Number of shares theoretically issued to Camber shareholders		64,480,980
Viking share price at date of merger	$	0.807
Consideration transferred	$	52,036,151

The consideration transferred was allocated to the assets acquired and liabilities assumed of Camber based upon their estimated fair values as of the merger closing date, and any excess value of the consideration transferred over the net assets will be recognized as goodwill, as follows:

Consideration transferred	$	52,036,151
Net Assets Acquired and Liabilities Assumed (Camber):
Cash	$	154,955
Prepaids		247,917
Oil and gas properties		1,475,000
Advances due from Viking		4,452,300
Investment in Viking		56,432,183
Goodwill		34,860,411
Total net assets acquired		97,622,766
Accounts payable	$	1,628,669
Accrued expenses and other current liabilities		253,353
Derivative liability		3,540,036
Long term debt		40,099,510
Asset retirement obligations		65,047
Total net liabilities assumed		45,586,615
Total Net Assets Acquired and Liabilities Assumed	$	52,036,151