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.
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.
It’s official — National Coal Corp. shareholders on Thursday approved the sale of the Knoxville-based company to West Virgina businessman and coal baron Jim Justice.
Justice, who attended the University of Tennessee and graduated from Marshall University, will pay $1 per share, a 54 percent premium over National Coal’s closing price on Sept. 27, the day the sale was announced.
East Tennessee businesses having a hard time getting loans for energy efficiency projects should attend one of Pathway Lending’s free “lunch and learn” workshops on Tennessee’s new $50 million Energy Efficiency Loan Program.
A workshop is scheduled Sept. 29 in Knoxville at Buddy’s BBQ Bearden Banquet Hall, 5806 Kingston Pike. On Sept. 30, Pathway Lending will be in theTri Cities area for a workshop at Pratt’s Real Pit Bar-B-Que, 1225 E. Stone Drive, Kingsport, Tenn.
Low-interest loans of $20,000 to $1 million are available.
East Tennessee’s job market got a dose of good news this week when Whirlpool Corp. said it would invest $120 million to expand its Cleveland, Tenn. operation.
The company plans to build a 1 million-square-foot manufacturing plant where it will make built-in, premium cooking products. The expansion will add 130 jobs to an existing work force of 1,500 employees.
Whirlpool’s announcement is welcome news to unemployed Tennesseans. We still have a long way to go before all of the jobs lost in the recession are replaced, but progress is being made.
For more on the jobs market and why it’s not as bad as the screamers on cable TV would have us believe, check out my column on Sunday in Knoxvillebiz and the News Sentinel.
Photo: Chattanooga Times Free Press/ Mike Pare
Melissa Haynes, a Whirlpool Corp. employee, works on an oven at the company’s plant in Cleveland, Tenn.