Miller Energy Resources shares are down more than 5 percent in trading today, following the
Knoxville company’s announcement late last week of a new $100 million credit deal with Apollo Investment Corp.
The five-year agreement is secured “by substantially all of the company’s and its subsidiaries’ assets,” Miller said in a news release.
The deal includes an initial $55 million borrowing base. Miller said it will use the loan to pay off existing debt, its Series A Preferred Stock and pay for drilling new wells and reworking existing wells both onshore and offshore in Alaska.
Miller’s shares shed 5.8 percent to $4.71 in early afternoon trading.
“Today Miller secured the financing needed to keep our development plans moving forward. The new credit facility with Apollo Investment Corporation comes at a lower cost of funds than our previous facility and with a larger initial borrowing base. In addition to the financial security provided by the new facility, Miller is pleased to have access to Apollo’s extensive financial capabilities and considerable oil and gas expertise,” CEO Scott M. Boruff said in a statement.
Earlier this year, Miller expanded its Alaska operations with a five-year oil and gas lease on 45,764 acres located south of its existing licenses in the Susitna Basin north of Anchorage.
Miller is an oil and natural gas exploration and production company with operations in Alaska and East Tennesse.
Photo: Miller Energy Resources platform in Alaska’s Cook Inlet.