Miller Energy Resources (“Miller”) (NYSE: MILL) released an update today on its operations both in Alaska and in Tennessee. Alaska Rework Update We are pleased to report that Miller Rig 35 completed the workover of the RU-3 gas well on December 14, 2012. We then commenced swabbing operations to remove wellbore fluid in order to prepare for well testing. During the workover we discovered multiple unreported fish left in the hole by a previous operator. We were able to successfully remove the obstructions, but this caused the workover to take longer than expected. The well has now been completed and the wellhead installed. The project is on track to be completed under budget. Swabbing operations have been recovering fluid at a slower rate than we had hoped, so we have decided to move forward with a nitrogen coil cleanout starting this weekend to accelerate the process. Well testing will commence as soon as sufficient liquids have been removed from the wellbore. After this occurs, we plan to move Rig-35 to the RU-4 well for a gas workover. RU-4 previously tested at a rate of 1.4 MMcf/d from the Tyonek gas sands. The move to the RU-4 well should be completed in the first week of January 2013, after which the workover will immediately commence. The workover procedure is expected to take 10 to 12 days. After completing work on RU-4, Rig-35 will immediately begin moving either to RU-2 to drill a sidetrack or to RU-7 to replace the failed electrical submersible pump (ESP) in that well. The Company is balancing a short rig move followed by a longer time on the RU-2 well against a longer rig move which will have a shorter time on the RU-7 well. We plan on taking advantage of the down time during one of the rig moves to add additional perforations into our RU-D1 disposal well. The additional perforations should enhance the injectivity of that wellbore, which will support both drilling and operations by allowing us to dispose of wastes more rapidly and at a lower cost. The perforation of RU-D1 will be managed such that it will not delay our drilling schedule.
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.