Miller Energy Resources Announces Fiscal Year End Record Financial Results

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Jul 30, 2010, 12:04 ET

HUNTSVILLE, Tenn., July 30 /PRNewswire-FirstCall/ -- Miller Petroleum, Inc. dba Miller Energy Resources ("Miller") (Nasdaq: MILL) a high growth oil and natural gas exploration, production and drilling company announced today its financial results for fiscal year ended April 30, 2010.

Fiscal Year Ended April 30, 2010 Financial Highlights:

Increased revenue to $5.9 million in fiscal year 2010 from $1.6 million in fiscal year 2009.
Increased stockholder equity to $275.7 million in fiscal year 2010 from $7.2 million in fiscal year 2009.
Increased net income to $249.4 million in fiscal year 2010 from $8.4 million in fiscal year 2009 as a result of the one-time gain on acquisition of the Alaskan assets.
Increased earnings per outstanding share to $11.58 in fiscal year 2010 from $0.56 in fiscal year 2009 and increased earnings per diluted share to $8.29 in fiscal year 2010 from $0.56 in fiscal year 2009.

Fiscal Year Ended April 30, 2010 Milestones:

Laid the foundation throughout the year for Millers recent listing on the NASDAQ Global Stock Market.
Increased the stock price from $0.20 on April 30, 2009 to $5.76 on April 30, 2010.
Increased the market capitalization from $3.7 million on April 30, 2009 to $156.3 million on April 30, 2010.
Acquired East Tennessee Consultants and the assets of KY-Tenn Oil to become the largest owner/operator of oil and natural gas wells in State of Tennessee.
Acquired certain select assets of Pacific Energy's Resources in Cook Inlet, Alaska including onshore and offshore production and processing facilities, an offshore energy platform, over 600,000 net lease acres of land with hundreds of miles of 2-D and 3-D geologic seismic data, miscellaneous roads, pads and facilities.
Became the largest lessee/licensee of State of Alaska owned oil and gas property.
Utilized Miller's experienced operators in Alaska to increase production to 1,000+ BOED eight months ahead of schedule.
Acquired Alaska Reserves (P1, P2, P3) of 17.5 Million Barrels of Oil and 19.3 BCF of Natural Gas.
Acquired Alaska Reserves at an acquisition cost of $0.36/BOE on proven reserves vs. historical U.S. average of $19.11/BOE.
An Alaska Reserve Value (P1, P2, P3) of $540 Million PV-10 (SEC), $862 Million PV-10 (NYMEX) Based upon 4/30/10 Reserve Report.

"The progress and accomplishments at Miller over the past year are nothing short of extraordinary. We will look back on this as a watershed year in Miller's development, having made significant progress on key initiatives and positioning us for growth in 2010 and beyond," said Scott M. Boruff, Miller CEO. "I would like to congratulate and thank the talented team we have assembled at Miller for their combined work that made this historic year possible. Together we have laid the foundation for a very bright future for our company, as we continue to effectively execute our ambitious business plan, while adding long term value for our shareholders."

MILLER PETROLEUM, INC. CONSOLIDATED BALANCE SHEETS
	April 30, 2010		April 30, 2009
ASSETS
CURRENT ASSETS
Cash	$	2,750,841	$	46,566
Cash – restricted		126,064		1,982,552
Accounts receivable, net		1,444,844		124,815
Accounts receivable - related parties		47,446		19,882
Prepaid expenses		521,639		87,120
Inventory		275,610		—
Total Current Assets		5,166,444		2,260,935

Fixed Assets		116,782,535		5,751,017
Less: accumulated depreciation		(1,961,756)		(1,022,017)
Net Fixed Assets		114,820,779		4,729,000

OIL AND GAS PROPERTIES
(On the basis of successful efforts accounting)		376,216,621		1,787,911

Land		526,500		406,500
Deferred Interest		—		6,892
Prepaid Offering Cost		—		666,476
Cash - restricted long-term		2,071,839		84,019
Other assets		1,649,972		—
Total Other Assets		4,248,311		1,163,887
TOTAL ASSETS	$	500,452,155	$	9,941,733

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable – trade	$	3,579,112	$	301,082
Accrued expenses		421,938		271,099
Current derivative liability		720,840		—
Unearned revenue		106,443		131,587
Current portion of notes payable		—		1,870,732
Total Current Liabilities		4,828,333		2,574,500

LONG-TERM LIABILITIES

Deferred income taxes payable		184,468,878		778
Asset retirement liability		15,662,002		57,246
Long-term derivative liability		16,708,947		—
Notes payable – related parties		1,803,775		—
Notes payable – other		1,239,399		88,473
Total Long-term Liabilities		219,883,001		146,497
Total Liabilities		224,711,334		2,720,997

STOCKHOLDERS' EQUITY
Common stock, 500,000,000 shares authorized and outstanding $0.0001 par value, 32,224,894 and 15,974,356 shares issued and outstanding, respectively		3,223		1,597
Additional paid-in capital		27,620,605		8,555,324
Retained earnings (accumulated deficit)		248,116,993		(1,336,185)
Total Stockholders' Equity		275,740,821		7,220,736
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	500,452,155	$	9,941,733

MILLER PETROLEUM, INC. CONSOLIDATED STATEMENT OF OPERATIONS
	Year Ended
	April 30, 2010		April 30, 2009
REVENUES
Oil and gas revenue	$	4,437,215	$	640,094
Service and drilling revenue		1,429,789		927,210
Total Revenue		5,867,004		1,567,304

COSTS AND EXPENSES
Cost of oil and gas revenue		2,583,383		240,389
Cost of service and drilling revenue		1,342,509		1,184,901
Selling, general and administrative		10,345,216		2,712,943
Depreciation, depletion and amortization		2,709,308		649,070
Total Costs and Expenses		16,980,416		4,787,303

LOSS FROM OPERATIONS		(11,113,412)		(3,219,999)

OTHER INCOME (EXPENSE)
Interest income		25,616		62,741
Interest expense		(527,355)		(87,526)
Loss on derivative securities		(15,861,007)		—
Loan fees and costs		(741,309)		(124,085)
(Loss) gain on disposal of equipment		(9,755)		10,450
Gain on sale of oil and gas properties		—		11,715,570
Gain on acquisitions		461,111,924		—
Total Other Income		443,998,114		11,577,150

NET INCOME BEFORE INCOME TAXES		432,884,702		8,357,151

INCOME TAX EXPENSE		183,431,522		778

NET INCOME	$	249,453,180	$	8,356,373

INCOME PER SHARE
BASIC	$	11.58	$	0.56
DILUTED	$	8.29	$	0.56

WEIGHTED AVERAGE SHARES OUTSTANDING
BASIC		21,537,677		14,827,877
DILUTED		30,092,017		14,827,877

About Miller

Miller Energy Resources is a high growth 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 prolific and hydrocarbon-rich Appalachian Basin including the Chattanooga Shale. Miller is headquartered in Huntsville, Tennessee with offices in Anchorage, Alaska and Knoxville, Tennessee. The company's common stock is listed on the NASDAQ Stock Market under the symbol MILL.

Statements Regarding Forward-Looking Information

Certain statements in this press release and elsewhere by Miller Energy Resources are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve the implied assessment that the resources described can be profitably produced in the future, based on certain estimates and assumptions. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those anticipated by Miller Energy Resources and described in the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, adverse general economic conditions, operating hazards, drilling risks, inherent uncertainties in interpreting engineering and geologic data, competition, reduced availability of drilling and other well services, fluctuations in oil and gas prices and prices for drilling and other well services, fluctuations in the US dollar and other currencies, the availability of sufficient capital to fund its anticipated growth, fluctuations in the prices of oil and gas, the competitive nature of its business environment, its dependence on a limited number of customers, its ability to comply with environmental regulations, changes in government regulations which could adversely impact its businesses well as other risks commonly associated with the exploration and development of oil and gas properties. Additional information on these and other factors, which could affect Miller's operations or financial results, are included in Miller Energy Resources' reports on file with United States Securities and Exchange Commission including its Annual Report on Form 10-K for the fiscal year ended April 30, 2010. Miller Energy Resources' actual results could differ materially from those anticipated in these forward- looking statements as a result of a variety of factors, including those discussed in its periodic reports that are filed with the Securities and Exchange Commission and available on its Web site (www.sec.gov). All forward-looking statements attributable to Miller Energy Resources or to persons acting on its behalf are expressly qualified in their entirety by these factors. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We assume no obligation to update forward-looking statements should circumstances or management's estimates or opinions change unless otherwise required under securities law.

Web Site: http://www.millerenergyresources.com

SOURCE Miller Petroleum, Inc.