Miller Energy Resources, Inc. issued an update to shareholders and the investment community regarding the company’s oil and gas exploration and development program in the United States.
Miller Energy Resources is involved with a two well offshore workover program at the Redoubt Shoals Field in the Cook Inlet of Alaska. The company is attempting to stimulate additional production at these wells through the replacement of pumping equipment and well bore optimization techniques.
Miller Energy Resources said that the workover of the RU-7 well was recently completed and the well was producing at an initial rate of 250 barrels of oil per day. This was more than twice the level of production predicted by the company prior to the workover.
The RU-7 well is the second well in the workover program. Miller Energy Resources reported the successful workover of the RU-1 well in June 2011. This well produced at an initial rate of 350 barrels of oil per day.
Miller Energy Resources has contracted to purchase a drilling rig to be placed on the Osprey offshore platform at Cook Inlet. The rig costs $17.9 million and will be used to conduct future offshore drilling opportunities in the area.
For more information on the company, go to www.millerenergyresources.com