Miller Energy Resources raising capital

Miller Energy Resources has raised millions in fresh cash and apparently wants more.Miller_Energy02.jpg

The Knoxville-based oil and gas exploration and production company said Thursday it has raised $10 million through a preferred stock offering to existing shareholders.

The company also announced that veteran corporate finance manager Don Raper has joined the company as senior vice president of finance – capital markets.

The money raised from the stock offering will be used to fund immediate expenses and “help us improve the terms and speed at which we can refinance our existing credit facility,” CEO Scott Boruff said in a prepared statement.

The Series A Redeemable Preferred Stock does not convert to common stock and holders will receive annual dividends of 10 percent, the company said.

Investors were also issued warrants to purchase Miller’s common stock, with an above-market exercise price of $5.28 per share.

Raper has more than 28 years experience in corporate finance and previously was national sales director at Energy Hunter Securities Inc. He helped Energy Hunter raise over $280 million from 2003 to 2012, according to the news release.

“Don’s background and experience should maximize our ability to access new capital necessary to continue to fund our growth,” Boruff said.

Miller Energy has operations in Alaska and East Tennessee. Shares were up more than 5 percent to $4.15 in afternoon trading.

Photo: Miller Energy Resources platform in Alaska’s Cook Inlet