Miller Energy to Buy Savant Alaska - Analyst Blog

By Zacks Equity Research,

Shutterstock photo

Upstream energy company Miller Energy Resources Inc. ( MILL ) has entered into a binding deal to buy Savant Alaska LLC. After the purchase, Savant Alaska will become the fully owned affiliate of Miller Energy. Miller Energy is expected to pay roughly $9.0 million cash for the acquisition. The deal is pending regulatory approvals and is slated for an Aug 2014 closure.  
Through the acquisition, Miller Energy will get roughly 67.5% operating interest in the Badami oil field, situated at the North Slope of Alaska. The rest 32.5% is owned by ASRC Exploration LLC. Through 67.5% ownership, Miller Energy will be able to operate roughly 17,200 gross acres in the oil field with eight operating wells which are presently producing gross 1,100 barrels of oil every day.

Moreover, the acquisition entails the drilling of two wells - B1-14 and B1-28 with an estimated 2 million barrels of recoverable oil reserve -planned in the Badami oil field. Each well would involve about $15.0 million in Miller Energy's capital expenditure.

Knoxville, TN based Miller Energy mainly involves in the exploration, production and drilling of oil and natural gas resources. The company currently retains a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.

Meanwhile, one can look at better-ranked players in the oil and gas exploration and production industry like Athlon Energy Inc. ( ATHL ), Callon Petroleum Company ( CPE ) and Encana Corporation ( ECA ). All the stocks sport a Zacks Rank #1 (Strong Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ATHLON ENERGY (ATHL): Free Stock Analysis Report

CALLON PETE-DEL (CPE): Free Stock Analysis Report

ENCANA CORP (ECA): Free Stock Analysis Report

MILLER ENERGY (MILL): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: ATHL , CPE , ECA , MILL

More from


Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by