Miller Energy Resources Announces Tennessee Drilling Success
HUNTSVILLE, Tenn., May 19, 2011 /PRNewswire/ -- Miller Energy Resources, Inc. ("Miller") (NYSE: MILL), a high growth oil and natural gas exploration, production and drilling company announced today that it had successfully completed and put into production three recently drilled Tennessee wells. Miller has plans to drill 12 new wells and rework 100 existing wells in Tennessee in the next year.
Miller drilled two of the wells on a 2,400 acre farmout agreement on the Baker-Senior lease in Scott County, Tennessee. The Baker-Senior #1Mill well, which targeted the Fort Payne formation, reached a total depth of 2,520 feet and has been put into production at 58 BOD (barrels of oil per day). The Baker-Senior #2Mill well, which also targeted the Fort Payne formation, reached a total depth of 2,492 feet and the well has been put into production at 36 BOD. The well also produces natural gas, which is separated at the surface and sold to the existing gas pipeline.
In addition, Miller drilled the Lindsey #24 well in Campbell County, Tennessee to a total depth of 4,860 feet and completed the well in both the Big Lime and the Ft. Payne formations. The well had an "open flow" rate of 2.3 million cubic feet of gas per day. The well has been put into production at 300 mcf (thousand cubic feet per day). Miller owns a 50% interest in the well.
"These are excellent projects for Miller, as they pay out in less than a year, add to our reserves and will produce for 20 years or more," said Miller CEO, Scott M. Boruff. "These results bode well for our development plans in Tennessee. We have an aggressive drilling and well rework program planned for the next year which will add significantly to our bottom line while allowing us to continue to be a major employer in Scott County which has the highest unemployment in the state."
About Miller
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.
Web Site: http://www.millerenergyresources.com
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, 2010. 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.
SOURCE Miller Energy Resources, Inc.
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