Miller Energy Resources Signs Farmout Agreements With Hilcorp Alaska, LLC
Miller Energy Resources (“Miller”) (NYSE: MILL) announced today that its
wholly-owned Alaskan subsidiary, Cook Inlet Energy, LLC (CIE) signed two
agreements with Hilcorp Alaska, LLC to acquire Hilcorp’s 30%...
Miller Energy Resources (“Miller”) (NYSE: MILL) announced today that its wholly-owned Alaskan subsidiary, Cook Inlet Energy, LLC (CIE) signed two agreements with Hilcorp Alaska, LLC to acquire Hilcorp’s 30% interest in two leases covering a pair of oil and gas prospects on the west side of Alaska’s Cook Inlet. CIE previously held a 70% working interest in both leases, and the acquisition will add 504 net acres to CIE’s holdings upon fulfillment of the requirements in the farmout agreements. On September 20, 2012, CIE and Hilcorp executed two farmout agreements for the lease segments over the Sword and Sabre prospects. The two prospects are adjacent to the West McArthur River Unit that has produced over 13 million barrels of oil to date. Both prospects are well positioned for CIE to take full advantage of its existing infrastructure in conducting operations on the properties. CIE will earn Hilcorp’s interest upon completion of one commercial well in each farmout area. CIE currently anticipates drilling the wells within the next three years. Completion of the farmout will give CIE 100% working interest and full control over both prospects. David Hall, Cook Inlet Energy’s CEO, said, “Sword and Sabre prospects show great potential with internal company estimates up to 20 million barrels of oil and 14.3 BCF of gas possible.” “We are excited at the opportunity to obtain Hilcorp’s interest in these fields. These agreements will add significantly to our production potential in the Cook Inlet Basin and are additional milestones in our efforts to maximize the value of our assets through strategic acquisitions,” stated Scott M. Boruff, Miller Energy Resources CEO. 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.
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.