KNOXVILLE, Tenn., Sept. 13, 2011 /PRNewswire/ -- Miller Energy Resources, Inc. ("Miller") (NYSE: MILL) a high growth oil and natural gas exploration, production and drilling company announced today that Voorhees Equipment and Consulting Inc. has finished construction of Drilling Rig-35 and shipment is now underway to its final destination on the Osprey platform in the Cook Inlet of Alaska. Rig-35 is a National 1320, 2000 hp rig designed for offshore and onshore drilling. Miller made the final payment of $5.77 million on the purchase of the $19.5 million rig by drawing on its line of credit with Guggenheim Corporate Funding, LLC last week.
Rig-35 will be transported by truck from Houston to Seattle then loaded onto steam ships for delivery to Cook Inlet, Alaska. It is expected to take 3-4 weeks for full delivery to Alaska and will take an estimated 40 trailer loads. Once Rig-35 arrives in the Port of Anchorage, it will be trucked 150 miles to Nikiski and loaded onto a platform service vessel for delivery to the Osprey platform. It is expected that it will take up to 60 days to fully erect the Rig on the Osprey platform after its arrival. Preparations for receiving the rig are already underway by Miller Energy's wholly owned subsidiary, Cook Inlet Energy, LLC, led by David Hall.
"The installation of a rig on our Osprey platform marks a new chapter for Miller in Alaska," said Scott M. Boruff, Miller's CEO. "We will now be able to target previously producing wells, drill new wells and perform routine and incidental maintenance on the wells that are already producing. The existing wells continue to exceed our expectations, which bodes well for our future development plans. The new rig will be instrumental in allowing us to further tap the enormous potential of the Redoubt Shoals Field, allowing us to rapidly grow production which has proven to translate into added long term value for our shareholders."
Miller Energy Resources, Inc. 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 NYSE under the symbol MILL.
Statements Regarding Forward-Looking Information
Certain statements in this press release and elsewhere by Miller Energy Resources¸ Inc. 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, Inc. 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, Inc.'s 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, 2011. Miller Energy Resources, Inc.'s 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 Energy Resources, Inc.