Miller Energy Closes Deal on East Tennessee Consultants, Shale Acreage
Miller Energy Resources has completed the acquisition of 100% of the stock of East Tennessee Consultants, Inc. and related company East Tennessee Consultants II, LLC (collectively "ETC")which includes 377 natural gas and oil wells and approximately 5,000 leased acres located on Tennessee's prolific Chattanooga Shale. As consideration, Miller Energy Resources issued the three principals of ETC an aggregate of 1 million shares of common stock valued at $250,000. These principals will continue with ETC for a minimum of three years after the acquisition so as to provide continuity in its operations.
Miller CEO Scott M. Boruff commented that, "This is an exciting time at Miller Energy Resources. With our second acquisition this month we have again doubled our oil and natural gas production while continuing to bolster our Chattanooga Shale lease acreage holdings."
Earlier this year, Miller Energy Resources announced a $20 million acquisition, re-completion, drilling and development program that will be utilized to enhance and develop the assets and operations of ETC, as well as recently acquired KY-Tenn Oil, Inc.(KTO).
Boruff added, "This adds to Miller's large lease position in the middle of Tennessee's prolific Chattanooga Shale. Initial analysis has indicated that the acreage could yield over 125 new well locations. Our plan for folding the operations of ETC and KTO into Miller are ahead of schedule and we can now shift our focus to the many other acquisitions that are presently under evaluation."
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