HUNTSVILLE, Tenn., Oct. 28 /PRNewswire/ -- Miller Petroleum, Inc. dba Miller Energy Resources ("Miller") (Nasdaq Global Market: MILL) a high growth oil and natural gas exploration, production and drilling company announced today the results of a frac operation on the TMC 2 Well on its non-operated Three Mile Creek Lease (ADL 388233) in the Cook Inlet Basin, Alaska. Cook Inlet Energy, LLC, a wholly owned Miller subsidiary, holds a 30% Working Interest in the lease and elected to fully participate in the frac operation.
Production from the TMC 2 Well prior to the frac operation was at rates from 60 to 80 mcf/day. Following the frac operation, production rates gradually increased and leveled off at an average rate of 350 mcf/day. The frac operation, which was conducted this month, targeted 8 zones covering 125 feet of total pay. The Well Operator, Aurora Gas, LLC, who conducted the frac operation, stated that they "anticipate an increase in the recoverable reserves attributed to this well, along with an already proven 4 – 5 fold increase in deliverability."
"We are very pleased with the results from the frac operation at Three Mile Creek. We understand that, based upon the success of the fracking of the TMC 2 Well, the Operator is evaluating other wells on the Three Mile Creek Lease for similar operations," said Scott M. Boruff, Miller CEO. "Additionally, our team in Alaska, headed by David Hall, has begun evaluating the results of this operation with an eye towards the potential for applying this procedure to our exploration/development program on several of our gas prospects in the Cook Inlet Basin."
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.
SOURCE Miller Petroleum, Inc.