Miller Energy Completes Sale Of Tennessee Assets - Quick Facts

(RTTNews) - Miller Energy Resources, Inc. (MILL) has closed the sale of its Tennessee assets as well as issued an update on its RU-9 well.

Yesterday, Miller concluded the prior-announced sale of substantially all of its Tennessee oil and gas assets for about $3.3 million cash. The company has also liquidated its remaining oil and gas inventory in that State, yielding nearly $0.6 million in net cash proceeds further to the purchase price. The sale of its Tennessee operations are expected to reduce costs and improve the company's cash flow by about $0.8 million a year.

In addition, the firm announced that its RU-9 well entered production. Prior to experiencing a recent electrical failure, oil production from the well had ramped to approximately 100 Bopd with a continued increasing oil cut. The Company is evaluating the optimal way to return the well to production.

The overall production of the company is now approximately 4.2 Boepd net. Miller is awaiting final regulatory approvals for its acquisition of Savant Alaska, LLC. Following the closure, the firm expects this acquisition to immediately add around 600 Bopd net production to Miller.