Miller Energy Updates on Operations in Alaska, Tennessee; Shares Down 1%
Miller Energy Resources ( MILL ) is down 1.0% after issuing an operational update on its projects in Alaska and in Tennessee.
MILL reports that the Miller Rig 35 completed the workover of the RU-3 gas well on December 14, 2012. The company then commenced swabbing operations to remove wellbore fluid in order to prepare for well testing. During the workover MILL discovered multiple unreported fish left in the hole by a previous operator. The project is on track to be completed under budget.
Swabbing operations have been recovering fluid at a slower rate than MILL had hoped, so the company will move forward with a nitrogen coil cleanout starting this weekend to accelerate the process. Well testing will commence as soon as sufficient liquids have been removed from the wellbore.
After this occurs, the company plans to move Rig-35 to the RU-4 well for a gas workover. RU-4 previously tested at a rate of 1.4 MMcf/d from the Tyonek gas sands. The move to the RU-4 well should be completed in the first week of January 2013, after which the workover will immediately commence. The workover procedure is expected to take 10 to 12 days.
MILL is trading at $3.98 in a 52-week range of $2.59 - $5.59. Shares have increased 42% in the last 12 months.
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