This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Miller Energy Successfully Restarts RU-1 Oil Well

Stocks in this article: MILL

Miller Energy Resources (“Miller”) (NYSE: MILL) announced today that it has successfully completed a work-over on the RU-1 crude oil well with newly commissioned Rig 35 on the Osprey platform in Alaska’s Cook Inlet. The work-over consisted of removing two failed electric submersible pumps (“ESP”) and several restrictive flow devices, followed by installing a new ESP. The RU-1 well has demonstrated an initial production of 482 barrels of oil per day (“BOD”), which exceeds the previous average flow rate under its previous operator from September 2007 through July 2009 of 125 BOD. This was the first project for Miller’s new Rig 35, which received state approval to operate in August.

Rig 35, a National 1320, 2000 hp rig, is designed for offshore and onshore drilling to a maximum drilling depth of 24,000 feet. Cook Inlet Energy, a wholly owned subsidiary of Miller led by David Hall, will deploy Rig 35 to redevelop RU-3, a previously producing gas well to address Alaska’s continuing gas shortage. Following these two wells, Miller will then target the RU-2, RU-4, and RU-5 wells for work-over. Through the use of advanced drill techniques and wellbore optimization, Miller expects production rates to meet or exceed historical flow rates as demonstrated on the RU-1 and RU-7 work-overs.

“The successful redevelopment of RU-1 is another significant milestone for Miller. Our fixed costs to operate the Osprey platform are covered by existing production, so each additional barrel of oil produced comes at an estimated marginal incremental cost of less than $5 per barrel. This means that each well brought online on the platform has a significant direct, positive impact on Miller’s bottom line,” said Scott M. Boruff, Miller’s CEO. “With Rig 35 working to restore production from the Redoubt Shoals Field, we expect to see major increases in our production over the next few months which will build significant long term value for our shareholders.”

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs