Miller Energy Resources, Inc. issued a financial update and disclosed additional details on its oil and gas exploration and development activities in the United States.
The company closed on a $100 million credit facility with a group of institutional investors. The two year facility is being funded by Guggenheim Corporate Funding, LLC, Citi and Bristol Investment Fund, Ltd.
Miller Energy Resources said that the credit facility has an initial base of $35 million and is secured by the company’s assets. The company said that the funds will be used to develop oil and gas assets in Alaska and for the construction of a drilling rig to facilitate those activities.
Miller Energy Resources has redeveloped the RU-1 well, located in the Cook Inlet area of Alaska. The company installed a new electric submersible pump and reported that the well is producing 350 gross barrels of oil per day.
Miller Energy Resources is planning on replacing the electric submersible pump on the RU-7 well and expects to be complete with this in June 2011. Both wells produce from the Osprey platform, and the company plans further redevelopment from this platform in 2011.
For more information on the company, go to www.millerenergyresources.com