Miller Energy announces stock offering, gas sales contract

It’s been a busy Monday for Miller Energy Resources.
The Knoxville-based oil and natural gas company announced that it intends to raise additional funds in a follow-on public stock offering.

It also announced that its wholly owned subsidiary Cook Inlet Energy has inked a new commercial gas sales agreement.

The exploration and production company said it will use proceeds from the sale of 10.75 percent Series C Preferred Stock for general corporate purposes, including drilling.

MLV & Co. LLC is acting as Sole Book-Running Manager and Maxim Group
LLC, National Securities Corp. and Aegis Capital Corp. as
Co-Managers for the offering, which is being underwritten on a “best
efforts” basis, the company said.

As for the new gas sales, terms of the agreement were not made public, but Miller said it expects to start contractual gas sales in May of 1 to 3 million cubic feet per day.

“We are very pleased with the execution of the new contract and what it
means for Miller’s production numbers,” Miiler CEO Scott M. Boruff said in a news release. “We have been running RU-3 and RU-4 at less than their
full potential flow rates. This new contract allows us to optimize well
production, bringing additional return on investment in our Cook Inlet
assets while continuing to provide sufficient gas to run our own

Miller has oil and natural gas exploration and production operations in Alaska and East Tennessee.

Click here for the gas sales news release. And here for the stock offering release.

Photo: Miller Energy Resources Osprey platform in the Cook Inlet in Alaska.