HUNTSVILLE, Tenn., March 28, 2011 /PRNewswire/ -- Miller Energy Resources ("Miller") (Nasdaq: MILL) a high growth oil and natural gas exploration, production and drilling company announced the commencement of operations to bring its Osprey offshore oil platform, located in the Cook Inlet of Alaska, out of lighthouse mode.
Miller's wholly owned subsidiary, Cook Inlet Energy, LLC, ("CIE" or "Cook Inlet Energy") led by CEO David Hall, has completed its planning and received the necessary approvals from the Alaska Department of Natural Resources to begin operations to bring the Redoubt Unit, including the Osprey Platform, back into production. This process included obtaining the approval of CIE's Amended Redoubt Unit Plan of Development, which was approved on February 17, 2011, as well as approval of the Redoubt Redevelopment Plan, which was approved March 16, 2011. CIE was also required to enter into a Performance Bond Agreement for the Redoubt Unit. This agreement was executed on March 14, 2011, and payments to fund the $12,000,000 balance of the bond will commence in July 2013.
Cook Inlet Energy has begun hiring additional field workers and has staff on the Osprey Platform to begin the process of restarting its systems. A hydraulic snubbing unit is under contract and en route to Alaska and should be installed on the Osprey to begin workover operations on three wells in April. Production from those three wells is expected to be online soon thereafter. Additional workovers on Osprey are planned for later this year.
"As a result of the hard work of our team in Alaska, as well as the cooperation of the Alaska Department of Natural Resources, we are now in position to tap the enormous potential of the Osprey Platform. At one time production on the platform reached 4900 barrels per day. I look forward to a return to these levels," said Scott M. Boruff, Miller CEO. "We are initially targeting three wells, two that entail replacement of downhole electrical submersible pumps and should quickly add approximately 400 barrels of oil a day to our production. The third workover entails reactivation of a previously producing gas well. We can then turn our attention to the additional previously producing wells on the platform."
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 Energy Resources