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Miller looks to spur Tennessee selloff Company says it wants to divest Appalachian basin oil and gas assets to focus on its ‘crown jewels’ in Alaska; bids due by Sept. 24 Wesley Loy For Petroleum News
Miller Energy Resources Inc. is stepping up efforts to sell its assets in its home state of Tennessee.
In dealing away those properties, Miller aims to focus on its operations in Alaska, where the company produces most of its oil and gas.
Miller announced Aug. 28 it had retained an oil and gas marketing and advisory firm, PLS Inc. of Houston, to help divest Miller’s holdings in the southern Appalachian basin in Tennessee.
Miller said it would evaluate “all reasonable bids” submitted by a Sept. 24 deadline.
“We are one step closer to completing an important part of our strategic realignment,” said Scott Boruff, Miller’s chief executive. “While we continue to believe our assets in Tennessee provide significant upside for any potential buyer, the sale will allow us to focus our time and resources on our crown jewels in Alaska.”
Miller first revealed plans on June 24 to divest its Tennessee assets. The company said the move was part of a restructuring and cost reduction program.
“After interviewing several firms, the company selected PLS Inc. to help identify and solicit bids from potential buyers,” Miller said Aug. 28.
The Tennessee portfolio Based in Knoxville, Miller is a small, publicly traded company listed on the New York Stock Exchange.
The company has reported total net production of just over 3,000 barrels of oil equivalent per day.
In Alaska, the company operates through its Anchorage-based subsidiary, Cook Inlet Energy LLC. Producing properties include the Osprey offshore platform, the onshore West McArthur River oil field, and the North Fork natural gas field on the Kenai Peninsula.
The company is poised to expand to the North Slope once it wraps up a pending deal to acquire Savant Alaska LLC, operator of the Badami field.
Miller has a long history in Tennessee’s modest oil patch.
In its Aug. 28 press release, the company described its holdings in the Volunteer state.
“Miller Energy Resources operates about 44,800 gross acres in Scott, Morgan, Roane and Campbell counties. The majority of the acreage is held by production. Geologic objectives include the Fort Payne, Monteagle, Mississippian Lime and Chattanooga Shale formations. Miller has identified more than 25 horizontal drilling targets for the Mississippian Lime, as well as the Monteagle. Additionally, Miller currently owns and operates approximately 650 wells which currently produce approximately 57 bopd and 400 mcfd net and believes there to be tremendous value in implementing an ongoing workover and recompletion program.”
Raising capital Miller has worked aggressively to raise capital to push its Alaska program.
The company recently completed a public offering of preferred stock, raising gross proceeds of about $18.4 million. Miller said it would use the proceeds for “general corporate purposes.”
Miller management has plans to make presentations at some upcoming investor conferences, including the Imperial Capital Global Opportunities Conference on Sept. 18 at the Waldorf Astoria in New York City.
As for activity in the field, subsidiary Cook Inlet Energy on Aug. 22 obtained a state permit to drill the Olson Creek No. 2 exploratory well. Olson Creek is a natural gas prospect on the inlet’s west side.
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