Miller Energy Resources Continues its Success Reworking Wells in Alaska
HUNTSVILLE, Tenn., Dec. 16, 2010
HUNTSVILLE, Tenn., Dec. 16, 2010 /PRNewswire/ -- Miller Petroleum, Inc. dba Miller Energy Resources ("Miller") (Nasdaq: MILL) a high growth oil and natural gas exploration, production and drilling company announced today that Cook Inlet Energy ("CIE"), its wholly owned subsidiary, has successfully worked-over its West McArthur River Unit-2A (WMRU-2A) well for use as an enhanced oil recovery well. WMRU-2A had been shut in since December 24, 2001. The restoration of WMRU-2A will allow for a pilot water flood program which is expected to increase oil recovery rates at wells Miller presently operates in the area as well as providing backup to the current injection well.
The recent work-over, executed by the Miller team in Alaska led by David Hall, consisted of a cost saving non-rig method that entailed the use of a coil tubing unit. The final coil tubing completion string was configured so that the well could be returned to production as an oil well, but converted to a water flood well without additional work on the well. This approach is allowing Miller to recover remaining oil before implementing the water flood program. Post work-over, WMRU-2A tested at 37 BOPD and has already produced nearly 1000 barrels of oil, which helps to offset the work-over cost of approximately $500,000.
"I am pleased with the results of our latest well in Alaska. It provides backup to our current injection well, and it is key to our plans to enhance oil recovery in Alaska," said Scott M. Boruff, Miller CEO. "We are now well positioned to implement our water flood program which we expect will boost production at our current operations."
Miller Energy Resources is a high growth oil and natural gas exploration, production and drilling company operating in multiple exploration and production basins in North America. Miller's focus is in Cook Inlet, Alaska and in the heart of Tennessee's prolific and hydrocarbon-rich Appalachian Basin including the Chattanooga Shale. Miller is headquartered in Huntsville, Tennessee with offices in Anchorage, Alaska and Knoxville, Tennessee. The company's common stock is listed on the NASDAQ Stock Market under the symbol MILL.
Statements Regarding Forward-Looking Information
Certain statements in this press release and elsewhere by Miller Energy Resources are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve the implied assessment that the resources described can be profitably produced in the future, based on certain estimates and assumptions. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those anticipated by Miller Energy Resources and described in the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, adverse general economic conditions, operating hazards, drilling risks, inherent uncertainties in interpreting engineering and geologic data, competition, reduced availability of drilling and other well services, fluctuations in oil and gas prices and prices for drilling and other well services, fluctuations in the US dollar and other currencies, the availability of sufficient capital to fund its anticipated growth, fluctuations in the prices of oil and gas, the competitive nature of its business environment, its dependence on a limited number of customers, its ability to comply with environmental regulations, changes in government regulations which could adversely impact its businesses as well as other risks commonly associated with the exploration and development of oil and gas properties. Additional information on these and other factors, which could affect Miller's operations or financial results, are included in Miller Energy Resources' reports on file with United States Securities and Exchange Commission including its Annual Report on Form 10-K for the fiscal year ended April 30, 2010. Miller Energy Resources' actual results could differ materially from those anticipated in these forward- looking statements as a result of a variety of factors, including those discussed in its periodic reports that are filed with the Securities and Exchange Commission and available on its Web site (www.sec.gov). All forward-looking statements attributable to Miller Energy Resources or to persons acting on its behalf are expressly qualified in their entirety by these factors. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We assume no obligation to update forward-looking statements should circumstances or management's estimates or opinions change unless otherwise required under securities law.
Web Site: http://www.millerenergyresources.com
Posted: December 16, 2010