ANCHORAGE, AK--(Marketwired - Aug 14, 2014) - Miller Energy Resources, Inc. (the "Company" or "Miller") (
Miller received approval of its application to acquire 100% ownership in Anchor Point from the Regulatory Commission of Alaska on August 8, 2014. Anchor Point owns and operates the North Fork Pipeline that services the North Fork Unit acquired in February of 2014. The North Fork Pipeline consists of twin four inch pipelines which span approximately nine miles across the eastern side of the Cook Inlet. Anchor Point is party to a multi-year natural gas sales contract with an affiliate of ENSTAR, the largest natural gas utility in Alaska. The acquisition is effective as of May 1, 2014.
"Owning Anchor Point is the last step in completing our acquisition of the North Fork Unit," explained David Hall, Chief Operating Officer of Miller Energy. "By owning the pipeline we will be able to reduce our transportation costs and realize incremental value from the North Fork assets. This is not only a conduit to transport our gas production to our customers, but a valuable asset that would take years and significant capital to build."
Miller previously paid a total of approximately $60.0 million in cash and $5.0 million in Series D Preferred Stock for the North Fork Unit and Anchor Point. The Series D Preferred Stock was held in escrow pending regulatory approval.
Separately, Miller is acquiring the Glacier Drilling Rig #1 for approximately $7 million in cash. The rig, now called Rig 37, is a Mesa 1000 carrier-mounted land-drilling rig that has already been mobilized to North Fork to begin drilling this winter. Work is underway to perform the necessary rig maintenance prior to commencing drilling.
"We are excited to take ownership of our new Rig 37 as it will help ensure we meet our drilling schedule at North Fork," said Scott Boruff, Chief Executive Officer of Miller Energy Resources. "We now own four drilling rigs in Alaska, which allows us to cost effectively control our existing and future exploration and development projects."
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.