Miller Energy Resources (“Miller”) (NYSE: MILL) today reported its results for the second fiscal quarter ended October 31, 2012. The Company reported revenues grew 17.4% to $10.8 million in the second quarter of fiscal 2013 compared with $9.2 million in the second quarter of the prior fiscal year. Net loss for the second quarter of fiscal 2013 was $6.3 million, or $0.15 per diluted share, compared with a net loss of $4.5 million, or $0.11 per diluted share, in the second quarter of fiscal 2012.
Miller achieved several of its significant operational goals during the second quarter, bringing Rig 35 online, starting its long awaited drilling program on the Osprey platform, and completing the first planned rework of a well on that platform with RU-1’s return to service in late October. RU-1 had an initial production rate of 482 bopd, and it averaged 260 bopd during November. Rig 35 is currently reworking RU-3, a gas well on the Osprey platform with a recorded IP over 8 mmcf a day by the previous owner.
“We are making solid progress in removing artifacts from RU-3’s well casing and hope to bring it back online by the end of the year,” said Scott Boruff, CEO of Miller, “Winter weather has slowed our operations as expected, but we remain focused on our rework program as weather permits.”
“We expect revenues to increase in the third quarter due to the contributions of RU-1 and the potential of RU-3 coming online in the near future,” continued Mr. Boruff. “The addition of the gas production from RU-3 has the potential to significantly reduce our operating costs by providing natural gas for our own operations and to make Miller a net seller of natural gas in the Cook Inlet. Although RU-7 is temporarily offline as a result of the failure of its aging electric submersible pump, over the remainder of the quarter we expect the contributions from RU-1 and RU-3 to more than offset that reduction in output. We plan to remove and replace RU-7’s pump on the Osprey platform once Rig 35 becomes available, taking into consideration our current operational schedule and the efficient allocation of our resources.”