Miller Energy Resources (“Miller”) (NYSE: MILL) announced today that it has acquired the Tennessee assets of PDC Energy, Inc. With this acquisition, Miller has completed a three year project of targeted acquisitions in the Appalachian Basin of East Tennessee which began in June 2009 with the acquisition of the assets of Ky-Tenn Oil, Inc., and two companies, East Tennessee Consultants, Inc., and East Tennessee Consultants II, LLC.
When Miller began its Tennessee acquisitions in 2009, it had interests in 20 producing oil wells and 32 producing gas wells. Today, Miller boasts interests in over 180 producing oil wells and 180 producing gas wells. Miller sought to acquire these assets and companies in order to exploit the vast potential of the oil bearing Mississippian Lime and the prolific Chattanooga Shale, and the latest acquisition primarily increases the working interest held by Miller in many of their existing wells.
In the coming months, Miller’s Tennessee operations team led by EVP David Wright plans to begin an aggressive rework program on many of these oil wells. Through the strategic drilling of new wells, re-works of old wells, new acquisitions, and consolidation of existing properties, Miller hopes to increase its Tennessee production significantly. The latest acquisition included producing wells that increased Miller’s daily production in Tennessee by approximately ten percent.
“This is another strong, strategic acquisition for Miller,” stated Scott M. Boruff, Chief Executive Officer of Miller Energy Resources. “Adding PDC’s working interests in these wells to our own will grow our production in Tennessee and pave the way for increased returns as they are reworked. We reap benefits both in terms of increased ownership on many currently producing wells and in new drilling opportunities we will have going forward,” Mr. Boruff concluded.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.
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