Miller Energy Resources Receives Approval To Operate Rig-35 On The Osprey Platform
Miller Energy Resources (“Miller”) (NYSE: MILL) announced today that its
Rig-35 received final approvals to commence drilling from the Alaska Oil
and Gas Conservation Commission after a thorough and rigorous...
Miller Energy Resources (“Miller”) (NYSE: MILL) announced today that its Rig-35 received final approvals to commence drilling from the Alaska Oil and Gas Conservation Commission after a thorough and rigorous rig inspection followed by a blowout preventer (BOP) test. Rig-35 is already positioned over the RU-1 oil well and is currently making repairs necessary to restore production. Rig 35, a National 1320, 2000 horsepower rig, is designed for offshore and onshore drilling with a maximum drilling depth of 24,000 feet. Led by David Hall, Cook Inlet Energy (a wholly owned subsidiary of Miller) plans to remove the old electrical submersible pump, along with conducting wellbore optimization, in hopes of not only bringing RU-1 back online, but also increasing RU-1’s historical flow rates. RU-1 was previously producing at a steady rate of approximately 270 Bbls/day. After completion of the RU-1 workover, Rig-35 will turn its attention to RU-2, a previously producing oil well, also on the Osprey platform. The RU-2 rework is anticipated to take 45-60 days. Miller expects that bringing these two wells online will double its Alaska production. Following the reworking of RU-1 and RU-2, Miller will target RU-3, RU-4, and RU-5 for workovers. With advanced drill techniques and wellbore optimization, Miller expects production rates to meet or exceed historical flow rates. “The commencement of operations by Rig-35 on our Osprey platform is a milestone that will enable us to accelerate our aggressive development and drilling plans on our single largest reserve base, the Redoubt Shoals Field,” said Scott M. Boruff, Miller’s CEO. “We are very optimistic about our future development plans. Rig-35 will be instrumental in allowing us to further tap the enormous potential of the Redoubt Shoals Field, permitting us to rapidly grow production. I want to thank David Hall and his team for the tireless effort they put in to get this state-of-the-art rig deployed and running.”
In trading on Tuesday, shares of Miller Energy Resources, Inc.'s 10.5% Series D Fixed Rate/Floating Rate Cumulative Redeemable Preferred Stock were yielding above the 17% mark based on its quarterly dividend (annualized to $2.625), with shares changing hands as low as $15.25 on the day. This compares to an average yield of 15.24% in the "Oil & Gas Exploration & Production" preferred stock category, according to Preferred Stock Channel.
The most recent short interest data was recently released by the NASDAQ for the 11/28/2014 settlement date, and Miller Energy Resources, Inc. is one of the most shorted stocks of the Russell 3000, based on 16.60 "days to cover" versus the median component at 6.85.