Miller Petroleum Inc., which does business as Miller Energy Resources, continued its 2009 oil and gas asset grab on Tuesday, announcing that it has entered into an agreement to purchase the south-central Alaska assets of Cook Inlet Energy LLC for $875,000.
The company said the deal includes $115 million in oil and natural gas reserves, 600,000 lease acres with potential additional reserves based upon $8.5 million in completed 3D seismic geology and numerous production facilities valued at almost $200 million. The deal is scheduled to close on Nov. 4.
“This is the third and largest major acquisition of my short tenure at Miller,” said CEO Scott M. Boruff. “It increases our reserves by 30-fold and significantly strengthens our balance sheet for less than one million dollars.”
In a $250,000 stock deal in June, Miller Energy acquired East Tennessee Consultants, Inc. and related company East Tennessee Consultants II LLC, which included 377 natural gas and oil wells and approximately 5,000 leased acres located on Tennessee’s Chattanooga Shale. Also in June the company completed the acquisition of certain assets from Ky-Tenn Oil Inc., which includes approximately 35,325 leased acres located on the Chattanooga Shale and 173 producing natural gas and oil wells. Miller Energy said the two deals make the company the largest owner-operator of oil and natural gas wells in Tennessee.
“Our institutional partners have given us the green light for further acquisitions,” Boruff added. “This is one of many substantial opportunities that we anticipate closing in the coming months.” Boruff added that the company plans in 2010 to turn its focus on “many of the international opportunities” that are currently under evaluation.
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