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Current MILL Stock Info

Miller Energy Resources, Inc. (ticker MILL) is an oil and natural gas exploration, production and drilling company operating in the Cook Inlet, Alaska and in the heart of Tennessee’s Appalachian Basin including the Mississippian Lime and Chattanooga Shale. Miller is headquartered in Knoxville, Tennessee with offices in Anchorage, Alaska and Huntsville, Tennessee.

Amending Loan Agreement

Miller Energy amended its loan agreement with Apollo Investment Corporation (ticker: AINV). The amendment increases the credit facility by $20 million, effective immediately, raising the total commitment to $100 million. The facility also amends the interest rate on new funds that are borrowed to an initial rate of 9% per annum. The original press release can be found here.

Additional terms include allowing MILL to repay any new borrowings without any penalty until January 31, 2014. On that date, the interest rate will be returned to the original 18% per annum.

“I am extremely pleased with this agreement, which reduces our borrowing costs and provides us with greater financial flexibility,” David Voyticky, President and acting CFO of Miller said in the press release. “The expansion in our available credit and the substantial reduction in the interest rate reflect Apollo’s continuing confidence and support in Miller Energy. Having successfully increased cash flow from several successful new wells over the past six months, this additional lower costing capital from Apollo, and the expectation of receiving ACEs rebates in the next several weeks, we have funded our 2014FY budget. We will only need to raise additional capital during the remainder of our 2014FY if we choose to add projects to our 2014FY CAPEX plan or choose to take advantage of favorable capital markets.”

Drilling Update

Miller and its wholly owned Alaskan operating subsidiary, Cook Inlet Energy, are on schedule on all three of their drilling operations in Alaska. The RU-1 sidetrack was drilled to total depth and is ready for completion while the Sword #1 well and Olson Creek #1 well drilling operations are both approximately half way through. The original press release can be found here.

The RU-1A well was drilled to a final measured depth of 15,050 feet and Miller is expected to run completion operations in the next week and brought online for production. The Sword #1 well has been drilled half way to 10,156 feet. Currently the rig crew is switching from water-based drilling mud to oil-based and will resume drilling soon.

Miller’s first Olson Creek well reached a depth of 4,700 feet and is planned for a total depth of 7,500 feet. Indications show the presence of hydrocarbons in the Beluga formation, which has only just been penetrated, with gas charged coal seams. The drilling of the well will be finalized over the next three weeks.

“Operationally we are right on schedule and proving up our geological thesis,” David Hall, Miller Energy’s Chief Operating Officer said in the release. “The log results from our drilling activities are providing crucial data and indicate that we have moved on the right targets. Not only should these new wells provide the incremental production increases we are looking for but also prove very impactful in identifying developmental runway and increases to reserve potential.”

Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. The company or companies covered in this note did not review the note prior to publication. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. As of the report date, neither EnerCom nor any of its employees has a financial interest in any equity or debt of any company mentioned in this report.

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Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.