Miller Energy Resources Inc. (NYSE: MILL) announced Nov. 21 the close of the sale of its Tennessee assets to an undisclosed company.
Miller closed the sale on Nov. 20 of substantially all of its Tennessee oil and gas assets for about $3.3 million in cash.
The Knoxville, Tenn.-based company has also liquidated its remaining oil and gas inventory in that state, yielding roughly $0.6 million in net cash proceeds in addition to the purchase price.
Miller expects the sale of its Tennessee operations will reduce costs and increase the company's cash flow by about $800,000 per year.
"Tennessee is where our company got its start, and we think our buyer will have great success there," said Carl F. Giesler, Miller's CEO, in a statement. "At the same time, this sale was the right strategic move for us. It allows us to focus our efforts as well as the market's attention on our substantial Alaskan oil and gas resources and related infrastructure. We believe that concentrating on those assets will realize the greatest value for our shareholders."
In Alaska, the company has built interests in fields in the Cook Inlet and North Slope and acquired offshore and onshore processing and production facilities and a modern offshore energy platform.
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