Miller Energy Resources recently acquired Alaskan oil and gas operations are producing over 300 barrels of oil equivalent a day (BOED) and expects to reach a rate of 1,100 BOED within eight weeks.
"When we acquired Alaskan oil and gas assets, with a PV-10 discounted value of $325 million, from Pacific Energy Resources ("Pacific Energy") through a Chapter 11 U.S. Bankruptcy proceeding in Delaware, in December 2009, we believed we would soon be producing 280 BOED, and we have now exceeded that goal.
"We felt we would be producing 800 barrels of oil within three months and 1,100 barrels of oil equivalent a day by the end of the year," said Scott Boruff, Miller CEO. "We are now on track to reach the 1,000 barrels of oil a day, well before our original time table, and we are ahead of our original scheduled and planned well re-work and development program underway."
All present oil and gas production is from the firm's West McArthur River Unit's wells and West Foreland wells. The reserves put back into production are part of the total reserves acquired in December of 2009 from Pacific Energy of 15.8 million barrels of oil equivalents (proven, probable and possible) with a PV-10 discounted value of over $325 million.
Additional gas production is being produced from wells operated by Aurora, in which Miller owns a 30% working interest in two.
In addition to the reserves acquired, Miller also acquired onshore and offshore production and processing facilities, an offshore energy platform, over 600,000 net acres of land with thousands of acres of 2D and 3D geologic seismic data, miscellaneous roads, pads and facilities all of which originally cost of more than $300 million to build and install over the decade. Miller operates the facilities through its 100% owned subsidiary, Cook Inlet Energy, LLC ("Cook").
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