Source: Miller Petroleum
Miller Petroleum (Nasdaq:MILL) reported that a $5 million line of credit was made available to us by PlainsCapital Bank in anticipation of larger, permanent facility. The line of credit bears an interest rate of 6% but may vary if the Prime Rate exceeds 5%. This loan is short term and matures on February 21, 2011, at which time we anticipate the permanent facility to be in place.
The proceeds from this financing will be utilized to fund the initial phase of Miller's winter development program in the Cook Inlet area of Alaska. The emphasis of the winter program is to target wells that were producing, but were shut-in by previous owners who lacked the equipment and funds to perform the necessary repairs. A key component of the initial phase of Miller's winter development program will be to return the Osprey Platform to production.
"This financing will allow us to continue to boost our production in Alaska without any dilution of our stock or encumbering any of our assets. We have been committed to obtaining the lowest cost financing available, and this bridge loan allows us to stay on schedule to meet our 2011 operating and exploration goals while we complete documentation of the permanent credit facility," said Scott M. Boruff, Miller CEO. "Miller has achieved tremendous growth over the last year. We are well positioned to continue our development by targeting additional low hanging fruit that has the highest probability of successfully adding production with high returns on invested capital. Our team in Alaska, led by David Hall, has already initiated the rework of additional wells and I look forward to bringing additional production on line as we continue to create value for our shareholders."
Miller Energy Resources is a high growth oil and natural gas exploration, production and drilling company operating in multiple exploration and production basins in North America. Miller's focus is in Cook Inlet, Alaska and in the heart of Tennessee's prolific and hydrocarbon-rich Appalachian Basin including the Chattanooga Shale.