Category Archives: Miller Energy Resources

Miller Energy says new well better than expected

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Miller Energy Resources has had its share of troubles, but on Monday the Knoxville oil and natural gas company announced that a new sidetrack well is producing better than expected.
The WMRU-2 sidetrack well in Alaska began producing on June 7 and it’s initial seven day average production is approximately 630 barrels of oil equivalent, the company said in a news release.
The well is expected “to continue to exceed our original assessment as it stabilizes,” said David Hall, Miller’s chief operating officer.
CEO Scott Buruff said the well should be “a substantial revenue generator for Miller.”
The company’s share price was up 37 cents, or more than 7 percent, to $5.62 in early afternoon trading.
Miller is an oil and natural gas exploration and production company with operations in Alaska and East Tennessee.
The new well’s performance offers a bit of good news following recent shareholder complaints.
Early this year the company settled a lawsuit brought by a group of dissident shareholders who complained about “excessive compensation and unacceptable self-dealing” at Miller.
Click here for more on the shareholders complaint.

Miller Energy taps investors for $25M in preferred stock sale

Miller Energy Resources platform in Cook Inlet, Alaska.

Miller Energy Resources platform in Cook Inlet, Alaska.

For the fourth time this year, Knoxville-based Miller Energy Resources has tapped investors for a fresh infusion of cash needed for general corporate purposes.
Miller announced Tuesday that it raised $25 million from the sale of 1 million shares of “Series D” preferred stock. The sale was completed Sept. 30.
The oil and natural gas company previously raised $32.6 million in stock sales in February, May and July.
Miller has struggled financially in recent months. The company reported in July a loss of $13.1 million for the fourth quarter of fiscal 2013, more than half its loss for the full 2013 fiscal year.
The net loss attributable to common stockholders was 31 cents per diluted share, up from a loss of $8.4 million, or 20 cents per share, in the 2012 fourth-quarter, the company said.
Miller is an oil and natural gas exploration and production company with operations in Alaska and East Tennessee.
Click here for Miller’s news release on its recent stock sale.
Click here for more on Miller’s latest financial report.

Miller Energy loses $9M despite higher revenue

Miller Energy Resources platform in Cook Inlet, Alaska.

Miller Energy Resources platform in Cook Inlet, Alaska.

Revenues were up, but Miller Energy Resources Inc. lost more than $9 million in the quarter ended July 31, the Knoxville-based oil and natural gas company reported Monday.
Net loss attributable to common stockholders was $9.4 million, or 22 cents per diluted share, for the company’s first quarter of fiscal 2014. That compares to a profit of $200,000 in the same period a year ago.
Revenues for the recently ended quarter rose more than 56 percent to $13 million from $8.4 million in the first fiscal quarter the prior year. Revenues were up on increased production and higher oil prices. Average realized oil prices rose 5 percent to $104.57 per barrel in the first quarter compared with $99.59 in the prior year period.
The revenue increase was off set by a 44 percent increase in costs and direct expenses and  “an increase in interest expense due to higher debt balances and less interest capitalized; and a loss on commodity derivatives,” the company said.
Despite swinging to a first-quarter loss, Miller CEO Scott Boruff gave an upbeat outlook based on increased production.
“We are continuing to see major increases in production in Alaska. In the second half of the first quarter, we brought our RU-2A well online, which has been our highest producing oil well to date. … (Contributing)  $4.1 million to our revenues for the quarter,” Boruff said in a statement.
Progress also is being made on bringing other oil and gas wells into production, Boruff said.
Miller Energy is an oil and natural gas exploration, production and drilling company with operations in Alaska’s Cook Inlet and in Tennessee’s Appalachian Basin.

Miller Energy posts $13.1M 4Q loss

Miller Energy Resources platform in Cook Inlet, Alaska.

Miller Energy Resources platform in Cook Inlet, Alaska.

Miller Energy Resources reported today a fourth-quarter loss of $13.1 million, more than half its loss for the full 2013 fiscal year.

The net loss attributable to common stockholders equaled 31 cents diluted share, up from a loss of $8.4 million, or 20 cents per share, in the 2012 fourth-quarter, the Knoxville-based oil and natural gas company said.

Revenues for the quarter ended April 30 tumbled 13 percent to $7.7 million, compared to $8.9 million in the same period the prior year.

The company attributed the 4Q loss to a pump failure knocking one of its wells offline, fluctuating shipping schedules and other reasons.

For fiscal 2013, revenues dropped 2 percent to $34.8 million and the net loss was $25.5 million, or 60 cents per share.

Despite rising loses, CEO Scott Boruff put a positive spin on the Knoxville company’s outlook for the coming months.

“While our revenues remained relatively constant in fiscal 2013 as compared to the prior year, we achieved several operational milestones late in the fiscal year and subsequent to year end,” Boruff said in a news release.” In fiscal 2014, we expect to see a substantial increase in revenues with significant contributions from our newest oil well, RU-2A, and our newest gas wells, RU-3 and RU-4. … Based on current production levels we expect that RU-2A will increase revenue by more than $10 million per quarter and add $8 million per quarter to free cash flow.”

As revenues have declined in recent months, the company has tapped investors for increased funding. Miller has raised more than $32 million in three preferred stock sales this calendar year alone.

Miller has exploration and production operations in Alaska and East Tennessee.

 

Miller Energy shares poised to double?

Miller Energy Resources has taken its lumps from bloggers, websites and disgruntled Miller_Energy02.jpgshareholders who question the Knoxville company’s financial performance.

But today Miller caught a break with a positive piece on the financial website Seeking Alpha — perhaps because the authors have a long position on Miller.

Arvind Mallik and Jonathon Fite, Managing Partners of KMF Investments, suggest that Miller shares, are likely to double in value.

So far this year the oil and gas exploration and production company’s shares have increased from around $3 at the start if 2012 to $4.82 at mid afternoon today.

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Miller Energy raises $15.75M in stock sale

Oil and gas company Miller Energy Resources has completed a public preferred stock sale that raised $15.75 million.Miller_Energy02.jpg

The Knoxville-based company sold 685,000 shares at a price of $23 per share.

The 10.75 percent Series C Cumulative Redeemable Preferred Stock will trade on the New York Stock Exchange under the symbol MILLprC, Miller announced.

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Miller Energy receives drilling approval

Miller Energy Resources today reported progress toward doubling its Alaskan oil production.Miller_Energy02.jpg

The Knoxville-based company said its Rig-35 had been approved for drilling by the Alaska Oil and Gas Conservation Commission.

The rig is in position over an existing oil well on the Osprey platform and work is underway to bring the well back into production. When production is restored to the first well, Miller plans to use Rig-35 to restore production at a second well on the Osprey platform.

“(B)ringing these two wells online will double its Alaska production,” the company said in a news release.

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Miller Energy signs $100M debt deal

Miller Energy Resources shares are down more than 5 percent in trading today, following the
Miller_Energy02.jpgKnoxville 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.

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Miller Energy Reources beefs up legal team

 

Miller Energy Resources has added veteran corporate lawyer Kurt Yost to its executive team.

Yost, 40, joins Miller as senior vice president and general counsel, the Knoxville-based oil and natural gas exploration company announced today.

“We believe that Kurt’s wide range of legal experience, particularly in corporate finance, is the right fit to lead our existing legal department,” CEO Scott. Boruff said in a statement.

 

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Miller signs new Alaska oil and gas lease

Knoxville-based oil and natural gas company Miller Energy Resources has added more than 45,000 acres to its Alaska exploration rights and is looking to add substantially more acres by the end of the year.

Scott+Boruff.jpgMiller said it its wholly owned subsidiary Cook Inlet Energy LLC recently signed a five-year oil and gas lease on 45,764 acres located south of its existing licenses in the Susitna Basin north of Anchorage.

With the new lease, Miller now holds has oil and gas exploration rights on 700,000 acres of state-owned of Alaska land.

“We hope to have 900,000 before the end of the year,” CEO Scott Boruff said.

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