Miller Energy Resources, Inc. announces that its wholly-owned subsidiary, Cook Inlet Energy, LLC (CIE) has entered into a definitive agreement to purchase the North Fork Unit and all affiliated assets from Armstrong Cook Inlet, LLC and the other working interest owners in the unit for $59.975 million in cash and $5.0 million in Miller's Series D Preferred Stock. The companies expect to close the transaction, subject to necessary governmental and regulatory approvals, in the first quarter of calendar 2014.
The sale will be effective as of closing and includes 6 natural gas wells, 15,464 acres, and production and processing equipment. The North Fork Unit and gas field is located on the southern Kenai Peninsula, east of the community of Anchor Point. The transaction will also include the acquisition of Anchor Point Energy, LLC ("AP Energy"), the owner and operator of 9 miles of twin 4 inch natural gas transmission pipelines and a multi-year natural gas sales contract. The acquisition of AP Energy will occur upon receipt of necessary regulatory approvals and is expected to occur after the closing on the North Fork Unit.