Miller Energy Resources To Acquire Savant Alaska For $9 Mln In Cash- Quick Facts

(RTTNews) - Miller Energy Resources, Inc. (MILL), an oil and natural gas exploration and production company, Wednesday said that it has signed a binding agreement to acquire Savant Alaska, LLC for $9.0 million in cash, subject to due diligence and regulatory approval.

The deal is expected to close by August, following regulatory approval with a May 1 effective date.

Following the deal, Savant would become a wholly-owned subsidiary of Miller, which would own a 67.5 percent working interest in the Badami Unit on North Slope, Alaska. ASRC Exploration, LLC will remain as a 32.5 percent working interest partner.

Badami Unit has seven State of Alaska leases consisting of 17,200 gross acres in the Alaska North Slope and eight wells currently producing 1,100 BOPD gross, 600 BOPD net to Savant

Miller would also obtain a 100 percent working interest in nearby exploration leases. The company expects these assets to bring approximately 1,100 BOPD gross and 600 BOPD net of current production and ownership of midstream assets located in the Alaska North Slope.

The company's initial plans are to drill two sidetrack wells at an estimated cost of approximately $15 million per well.

Miller's CEO Scott Boruff said, "The acquisition of Savant will significantly expand Miller Energy's Alaskan asset ownership, complementing our existing Cook Inlet operations and providing us with additional wellbore diversification."