Miller Energy Resources Retains Independent Marketing Firm to Divest Its Tennessee Assets
KNOXVILLE, TN--(Marketwired - Aug 28, 2014) - Miller Energy Resources, Inc. (the "Company" or "Miller") (NYSE: MILL) today announced that it has retained PLS Inc., a third party oil and gas marketing and advisory firm in Houston, Texas, to help divest Miller's assets in the Southern Appalachian Basin in Tennessee. Miller will evaluate all reasonable bids submitted by September 24, 2014.
Miller Energy Resources operates ~44,800 gross acres in Scott, Morgan, Roane and Campbell Counties. The majority of the acreage is held by production. Geologic objectives include the Fort Payne, Monteagle, Mississippian Lime and Chattanooga Shale formations. Miller has identified more than 25 horizontal drilling targets for the Mississippian Lime, as well as the Monteagle. Additionally, Miller currently owns and operates approximately 650 wells which currently produce approximately 57 BOPD & 400 MCFD net and believes there to be tremendous value in implementing an ongoing workover and recompletion program.
"We are one step closer to completing an important part of our strategic realignment," said Scott M. Boruff, Miller's CEO. "While we continue to believe our assets in Tennessee provide significant upside for any potential buyer, the sale will allow us to focus our time and resources on our crown jewels in Alaska. Furthermore, we believe the streamlining of our asset base and operations will help analysts and investors better grasp the Miller value proposition. We look forward to an expeditious and successful completion of this sales process."
On June 24, 2014, Miller announced plans to divest its Tennessee assets as part of its strategic restructuring and cost reduction program. After interviewing several firms, the Company selected PLS Inc. to help identify and solicit bids from potential buyers. The process will be run as a negotiated sale with offers due by September 24, 2014. Potential buyers will also be required to meet bonding requirements by the State of Tennessee. Interested parties should contact Mr. Brian Green at PLS by phone at 713-650-1212 or by email at firstname.lastname@example.org.
About Miller Energy Resources
Miller Energy Resources is an oil and natural gas exploration, production and drilling company operating in multiple exploration and production basins in North America. Miller's focus is in 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. The Company's common stock is listed on the NYSE under the symbol MILL.
Statements Regarding Forward-Looking Information
Certain statements contained herein are forward-looking statements including, but not limited to, statements that are predications of or indicate future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties. Forward-looking statements are not guarantees of future activities and are subject to many risks and uncertainties. Due to such risks and uncertainties, actual events may differ materially from those reflected or contemplated in such forward-looking statements. Forward-looking statements can be identified by the use of the future tense or other forward-looking words such as "believe," "expect," "anticipate," "intend," "plan," "should," "may," "will," believes," "continue," "strategy," "position" or the negative of those terms or other variations of them or by comparable terminology. A discussion of these risk factors is included in the Company's periodic reports filed with the SEC.
(August 28, 2014 - 8:00 AM EDT)
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