Miller Energy Resources, Inc. has signed a binding agreement to acquire Savant Alaska, LLC (Savant), subject to due diligence and regulatory approval, for $9.0 million in cash. Savant would become a wholly-owned subsidiary of Miller. Through Savant, Miller would own a 67.5% working interest in the Badami Unit, with ASRC Exploration, LLC (AELLC) remaining as a 32.5% working interest partner.
Miller would also obtain a 100% working interest in nearby exploration leases. These assets would bring approximately 1,100 BOPD gross and 600 BOPD net of current production and ownership of midstream assets located in the Alaska North Slope with a design capacity of 38,500 BOPD and 25 miles of pipeline. We estimate the acquisition will add approximately $6 million of PDP PV-10 (based on internal assessments by Savant) with significant additional drilling opportunities. In addition to the assets, Miller is pleased to welcome the Savant team, which will be supported by the Company's Anchorage office.