Miller Petroleum closed on a $6 million equity investment from an unnamed third party. The funds will be used for capital expenditures related to a recent acquisition by the company.
In December 2009, Miller Petroleum purchased the oil and gas operations of Pacific Energy Resources, a company that was in Chapter 11 bankruptcy proceedings. The company did not disclose a price.
Pacific Energy Resources had proved reserves of 5.6 million barrels of oil and 3.7 billion cubic feet (bcf) of natural gas located in Alaska. The discounted net present value of the reserves as calculated under SEC regulations is $325 million.
“We are already ahead of schedule producing oil in Alaska and this equity investment provides us the funding necessary to meet our production goals of over 1,100 barrels per day of oil by the fourth quarter of 2010 which should generate more than $30 million annually in gross revenue,” said Scott M. Boruff, the CEO of Miller Petroleum.
Miller Petroleum also received production facilities, an offshore platform and 600,000 net acres for future exploration in the acquisition. This was the second recent purchase for Miller Petroleum.
In early 2009, the company purchased Tennessee Consultants, Inc. The company’s assets included 377 wells, and 5,000 net acres under lease that are prospective for the Chattanooga Shale.