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Miller Energy Resources, Inc.(fka MILLQ)

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Last Post: 10/15/2016 6:24:13 PM - Followers: 56 - Board type: Free - Posts Today: 0


Share Related Items as of July 31, 2011
Market Cap. $174,930,000
Shares Out     39,000,000
Float     31,200,000
Share Related information provided by MorningStar, Inc.


Miller Energy Resources
is a high-growth oil and natural gas exploration, production and drilling company operating multiple projects in North America. Miller's focus is in the Cook Inlet area of Alaska and in the heart of Tennessee's Appalachian Basin.

Miller is one of the United States premier energy companies and is using its strategy of opportunistic growth combined with prudent development and management of existing assets to maximize value for its shareholders.


Cook Inlet Energy Acquisition

On December 10, 2009, Miller Petroleum, Inc. ("Miller" or the "Company") acquired 100% of the membership interests in Cook Inlet Energy, LLC ("CIE"), an Alaska limited liability company from the owners of this entity. This company was created to acquire the assets of from Pacific Energy Alaska Operating LLC and Pacific Energy Alaska Holdings, LLC ("PER") from the Chapter 11 U.S. bankruptcy filing. T he owners of membership interests in CIE were David M. Hall, Walter J. Wilcox, II and Troy Stafford (collectively the "Sellers"). As consideration for this company Miller issued the Sellers, who were unrelated third parties, stock warrants to purchase three million five hundred thousand (3,500,000) shares of Miller's common stock. The warrants were priced and vested as follows: Tranche 1 - 1,000,000 warrants with an exercise price of one cent ($0.01) immediately vested as of the date of closing; Tranche 2 - 1,500,000 warrants with an exercise price of one dollar ($1.00) vesting one year after closing; Tranche 3 - 1,000,000 warrants with an exercise price of two dollars ($2.00) vesting two years after closing. 350,000 of Tranche 1 warrants shall be delivered to an escrow account in the name of Miller and the sellers and is to be delivered to the sellers upon release of certain potential claims by a former financial advisor of CIE. As additional consideration, Miller agreed to place into escrow, within 90 days of closing $250,000 in cash, which is to be delivered to the sellers upon the release of certain potential claims by a former financial advisor of CIE. Miller shall also deliver to the Seller, reasonable and normal out of pocket expenses that the Sellers have incurred since December of 2008 through December 10, 2009.

As part of the acquisition, Miller agreed that CIE would be represented by a seat on the Board of Directors of Miller for a period of three years from December 11, 2009. The Director(s) representing CIE will be Mr. Hall or his designee(s). Should Mr. Hall become deceased, incapacitated or otherwise unavailable to act as director or appoint a designee, the Director(s) will become Mr. Wilcox or his designee(s). Should both Mr. Hall and Mr. Wilcox become deceased, incapacitated or otherwise unavailable to act as director or appoint a designee, the Director(s) will become Mr. Stafford or his designee(s).

The warrants were issued in a private transaction exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of the act. A copy of the form of warrants is filed as Exhibit 4.1 to this report. A copy of the Agreement for Sale of Membership Interest in Cook Inlet Energy, LLC is attached as Exhibit 4.2.

Pacific Energy Alaska Assets Acquisition

On December 10, 2009, Miller's wholly-owned subsidiary, Cook Inlet Energy, LLC acquired certain Alaskan oil and gas assets from Pacific Energy Alaska Operating LLC and Pacific Energy Alaska Holdings, LLC ("Pacific Energy") through a Chapter 11 U.S. Bankruptcy proceeding in Delaware. Miller acquired total reserves of over 13.2 million barrels of oil and 15.5 BCF of natural gas, including total proved reserves of 5.6 million barrels of oil and 3.7 BCF of natural gas as reported by the Pacific Energy in their most recent reserve report of January 1, 2009. The discounted net present value of the Alaska reserves that Miller acquired is over $327 million dollars, including $119 million dollars of proven reserves, $185 million of probable reserves and $23 million of possible reserves, as stated in its most recent reserve report as of January 1, 2009.

In addition, Miller acquired onshore and offshore production and processing facilities, an offshore energy platform, 602,000 net acres of land with thousands of acres of 3-D geologic seismic data, miscellaneous roads, pads and facilities all of which were built and installed over the last 5 years. The purchased assets includes the West McArthur River oil field, the West Foreland natural gas field, and the Redoubt unit with the Osprey offshore platform, all located along the west side of the Cook Inlet.

At closing, Miller paid Pacific Energy a purchase price of $2.25 million and provided $2.22 million for bonds, contract cure payments and other federal and State of Alaska requirements to operate the facilities. Miller will operate the facilities through its recently acquired wholly-owned subsidiary, Cook Inlet Energy, LLC, which has been approved by the State of Alaska as the long-term operator for the Alaskan oil and gas wells. A copy of the

Purchase and Sale Agreement by and between Cook Inlet Energy, LLC and Pacific Energy Alaska Operating LLC and Pacific Energy Alaska Holdings LLC is attached as Exhibit 4.3.

Convertible Secured Promissory Note

Also, in a related transaction, on December 3, 2009, Miller created a $3,000,000 six percent (6%) coupon  Convertible Secured Promissory Note program ("Note"). Accredited investors only may contribute to the debenture. Through December 10, 2009, Miller raised $2,885,000 through this program, which was contributed to the Alaskan asset transaction. Interest on the Notes is paid quarterly and the principal is due December 4, 2016. The Note contains a convertible feature which the Note holder has the right, but not the obligation, at the Holder's option, at any time prior to payment in full of the principal balance of this Note, to convert the unpaid principal amount of this Note, in whole or in part, into fully paid and nonassessable shares of Miller's Common Stock at the conversion price of $0.55 per share, a 10% discount to the closing price on December 4, 2009.

Purchasers of the Note shall receive 6% annualized interest which is payable quarterly, or at the pre-payment date, whichever occurs first. The first interest payment date shall be March 31, 2010. In the event that the principal amount of this Note and all accrued and unpaid interest is not paid in full when such amount becomes due and payable, the interest rate shall increase to twelve percent (12%) per annum and shall continue to accrue on the outstanding balance until such outstanding balance is paid.

The Company granted to the Note Holder a lien on, security interest in, and so pledges and assigns to them an interest in property, assets and rights including, but not limited to, all mineral rights and oil and gas assets of the Debtor, and all proceeds thereof in the 35,325 leased acres located in Morgan and Scott Counties on the Chattanooga Shale and the 173 natural gas and oil producing wells. A copy of the 6% Convertible Secured Promissory Note is attached as Exhibit 4.4.

#2569   Yes. It does sound quite pleasant. janice shell 10/15/16 06:24:13 PM
#2568   yes. It would be a shame not to blackcat 10/15/16 06:22:35 PM
#2567   Doesn't the article say it has 50 rooms? janice shell 10/15/16 06:19:52 PM
#2566   Well, with 8 bedrooms, it might work better blackcat 10/15/16 06:14:25 PM
#2565   I'm not so sure. Sounds as if janice shell 10/15/16 04:48:59 PM
#2564   well well. We could probably get it for blackcat 10/15/16 04:45:26 PM
#2563   Tara will be auctioned off on 26 October: janice shell 10/15/16 03:47:39 PM
#2562   That would be a start. Of course janice shell 04/20/16 04:04:00 PM
#2561   With his reputation in total tatters, I doubt blackcat 04/20/16 04:00:23 PM
#2560   That would be terrible. Maybe Scotty will janice shell 04/20/16 03:58:57 PM
#2559   One of them better get a job, then. blackcat 04/20/16 03:57:54 PM
#2558   I forget what she used to do. janice shell 04/20/16 03:56:14 PM
#2557   With no reserve, it is unlikely to fetch blackcat 04/20/16 03:54:27 PM
#2556   Sad that Julie will be leaving Tara so janice shell 04/20/16 03:51:31 PM
#2555   well, maybe we could find some CEO to blackcat 04/20/16 03:50:10 PM
#2554   Hey, let's each go in for $10. janice shell 04/20/16 03:43:53 PM
#2553   No reserve on Tara! Should we put in blackcat 04/20/16 03:41:57 PM
#2552   Looks as if Tara's going on the auction janice shell 04/20/16 03:36:15 PM
#2551   You'd think... janice shell 04/02/16 09:04:13 PM
#2550   The company will continue but as separate entities blackcat 04/02/16 08:59:36 PM
#2549 janice shell 04/02/16 08:53:05 PM
#2548   That sounds like a plan! janice shell 03/30/16 04:16:28 PM
#2547   What a train wreck this became. I hate blackcat 03/30/16 04:08:37 PM
#2546   Maybe he could show that he's been trying janice shell 03/30/16 04:01:57 PM
#2545   He can't. He'd have to sell it to blackcat 03/30/16 03:58:01 PM
#2544   Absolutely! But why not think big? janice shell 03/30/16 03:49:17 PM
#2543   LOL I'd say so. He could be more blackcat 03/30/16 03:44:35 PM
#2542   Yes, he needs to get Tara off his janice shell 03/30/16 03:41:30 PM
#2541   I'd imagine home to TN. He still got blackcat 03/30/16 03:39:33 PM
#2540   Yes. I wouldn't be surprised, either. janice shell 03/30/16 03:36:51 PM
#2539   Did he think he could talk his blackcat 03/30/16 03:33:53 PM
#2538   I think you're right. But I'm not janice shell 03/30/16 03:31:17 PM
#2537   I think you're right. But I'm not janice shell 03/30/16 03:31:17 PM
#2536   I haven't had a chance to read all blackcat 03/30/16 03:28:01 PM
#2535   There was a rash of filings yesterday. janice shell 03/30/16 03:16:10 PM
#2534   Ouch. A bigger bunch of screwups than janice shell 03/30/16 02:51:48 PM
#2533   ok thanks lesson learn, it cost me $165, Hei5enberg 03/30/16 10:35:25 AM
#2532   Yes, all common shares and all series of Renee 03/30/16 10:22:11 AM
#2531   hello that means that everyone who owned previous Hei5enberg 03/30/16 10:19:11 AM
#2530   MILLQ: bankruptcy PLAN effective. All shares cancelled. Renee 03/30/16 09:34:03 AM
#2529   Please check chart any break of .008 will blackcat 02/24/16 04:07:45 PM
#2528   Please do a little reading about this sorry janice shell 02/23/16 08:34:52 PM
#2527   Please check chart any break of .008 will kaylex13 02/23/16 08:33:57 PM
#2526   And would there be any particular reason that janice shell 02/23/16 04:46:23 PM
#2525   Breakout in AM kaylex13 02/23/16 04:45:42 PM
#2524   Just pathetic... janice shell 02/02/16 10:29:40 PM
#2523   How funny! They probably can't afford even that, anymore. blackcat 02/02/16 10:27:30 PM
#2522   No more MILL website… janice shell 02/02/16 10:23:10 PM
#2521   Evidently. But that kind would be easier janice shell 01/29/16 12:40:32 AM
#2520   Apparently hat "boxes" have changed. blackcat 01/29/16 12:12:59 AM