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 Resources platform in Cook Inlet, Alaska.
For the third time this year, Knoxville oil and and gas company Miller Energy Resources has issued preferred stock to raise money for general corporate purposes.
Miller said Wednesday it raised $7.2 million from the sale of preferred stock that was completed Tuesday. Proceeds will be used for general corporate purposes.
MLV & Co. LLC acted as sole book-running manager for the offering. Aegis Capital Corp., Maxim Group LLC, National Securities Corp., a wholly owned subsidiary of National Holdings Inc. and Northland Capital Markets acted as co-managers.
Miller raised $11.1 million in May and $14.3 million in February with follow on sales of preferred stock.
Miller has exploration and production operations in Alaska’s Cook Inlet and East Tennessee.
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.
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.
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.
Miller 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.
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.
By any measure fiscal 2010 was year was a good one for Miller Energy Resources.
The Hunstville, Tenn.-based oil and natural gas exploration, production and drilling company recently reported FY earnings of a whopping $249.4 million, or $8.29 per share. The previous year the company recorded a profit of $8.4 million, or 56 cents per share.