KNOXVILLE, Tenn., June 29, 2012 /PRNewswire/ -- Miller Energy Resources ("Miller") (NYSE: MILL) announced today that it had closed on a five year, $100 million credit facility with Apollo Investment Corporation ("Apollo") (NASDAQ: AINV). The credit facility, which provides for an initial borrowing base of $55 million, is secured by substantially all of the company's and its subsidiaries' assets. Proceeds from the loan will be utilized to pay off existing indebtedness, its Series A Preferred Stock, and fund development of oil production both onshore and offshore in Alaska through the drilling of new wells and the reworking of previously producing oil wells.
With the funding secured, Miller first plans to bring the RU-1 well on the Osprey platform in the Cook Inlet in Alaska back online by replacing its electric submersible pump ("ESP"). Last year, Miller brought this well online at approximately 350 Bbls/d gross prior to experiencing a pump failure.
After restoring production from RU-1, Miller plans to redevelop and drill additional wells in the Cook Inlet, including four wells that were previously producing approximately 2,000 Bbls/d gross from the Osprey platform.
"Today Miller secured the financing needed to keep our development plans moving forward. The new credit facility with Apollo Investment Corporation comes at a lower cost of funds than our previous facility and with a larger initial borrowing base. In addition to the financial security provided by the new facility, Miller is pleased to have access to Apollo's extensive financial capabilities and considerable oil and gas expertise," said Scott M. Boruff, Miller CEO. "With funding secured, we can continue to execute our ambitious business plan to aggressively ramp up our production over the next year through low risk development, which we expect will build significant long term value for our shareholders."About Miller Energy Resources 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 Knoxville, Tennessee with offices in Anchorage, Alaska and Huntsville, Tennessee. The company's common stock is listed on the NYSE under the symbol MILL. About Apollo Investment Corporation Apollo Investment Corporation (NASDAQ: AINV) is a closed-end investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. The Company provides private debt market solutions to middle market companies in the form of senior secured, mezzanine and asset based loans and may also acquire equity interests. The Company seeks to provide private financing solutions for private companies that do not have access to the more traditional providers of credit. Apollo Investment Corporation is managed by Apollo Investment Management, L.P., an affiliate of Apollo Global Management, LLC, a leading global alternative investment manager. For more information, please visit http://www.apolloic.com. Statements Regarding Forward-Looking Information