Miller Energy Resources Alaska Oil Production Reaches Over 300 BOED Ahead of Schedule
HUNTSVILLE, Tenn., Feb. 1 /PRNewswire-FirstCall/ -- Miller Petroleum, Inc. dba Miller Energy Resources ("Miller"), (BULLETIN BOARD: MILL) announced Feb. 1 that its recently acquired Alaskan oil and gas operations are producing over 300 barrels of oil equivalent a day (BOED) and expects to reach a rate of 1,100 BOED within eight weeks.
"When we acquired Alaskan oil and gas assets, with a PV-10 discounted value of $325 million, from Pacific Energy Resources ("Pacific Energy") through a Chapter 11 U.S. Bankruptcy proceeding in Delaware, in December 2009, we believed we would soon be producing 280 BOED, and we have now exceeded that goal.
"We felt we would be producing 800 barrels of oil within three months and 1,100 barrels of oil equivalent a day by the end of the year," said Scott Boruff, Miller CEO. "We are now on track to reach the 1,000 barrels of oil a day, well before our original time table, and we are ahead of our original scheduled and planned well re-work and development program underway."
All present oil and gas production is from the firm's West McArthur River Unit's wells and West Foreland wells. The reserves put back into production are part of the total reserves acquired in December of 2009 from Pacific Energy of 15.8 million barrels of oil equivalents (proven, probable and possible) with a PV-10 discounted value of over $325 million.
Additional gas production is being produced from wells operated by Aurora, in which Miller owns a 30% working interest in two.
In addition to the reserves acquired, Miller also acquired onshore and offshore production and processing facilities, an offshore energy platform, over 600,000 net acres of land with thousands of acres of 2-D and 3-D geologic seismic data, miscellaneous roads, pads and facilities all of which originally cost of more than $300 million to build and install over the decade. Miller operates the facilities through its 100% owned subsidiary, Cook Inlet Energy, LLC ("Cook")
Miller Energy Resources is an 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.
Miller is headquartered in Huntsville, Tennessee with offices in Anchorage, Knoxville and New York City. The company is traded over the bulletin board with the symbol MILL.OB.
Statements Regarding Forward-Looking Information
This news release contains statements about oil and gas production and operating activities that may constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities legislation as they 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, government regulation and foreign political risks, 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 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's reports on file with United States securities regulatory authorities. 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.
Source: Miller Petroleum, Inc.