Miller Energy Resources Inc. (NYSE: MILL) announced Dec. 12 a substantial increase in the value of its reserves located in the Cook Inlet area of Alaska based on a report issued by Ryder Scott Co. (RSC), an independent petroleum reserves engineering consulting firm.
The majority of the increase to the existing asset base is attributable to the success of the Sword-1 well, with recoverable reserves of 898 thousand barrels (bbl) and a PV-10 value of $63.4 million, RU-2A, with recoverable reserves of 1.5 million bbl and a PV-10 value of $78 million, RU-1A with recoverable reserves of 1 million bbl and a PV-10 value of $52 million, and RU-5A, with recoverable reserves of 516 thousand bbl and a PV-10 value of $25.1 million.
"We started our process with Ryder Scott in order to facilitate our financing objectives. Given lender focus on proved developed reserves, we expect this report will greatly enhance our ability to access cheaper capital," Scott M. Boruff, Miller's CEO, said in the release. "Moreover, the increase in proved developed reserves attributed by Ryder Scott validates our team's ability to execute on our development and acquisition strategy. As we move forward with our planned drilling schedule, we believe this rate of growth will continue in the second half of our fiscal year. While certainly exciting, it is just an early indication of the considerable potential yet to be unlocked at Miller Energy."
Miller Energy Resources Inc. is an independent energy company engaged in the exploration, development, and operation of oil and gas wells in Tennessee and Alaska. The company is headquartered in Knoxville, Tenn.