Miller Energy Resources has signed a letter of intent to acquire privately-owned Ky-Tenn Oil, Inc. which owns and operates some 180 oil and gas wells on 30,000 acres of Tennessee oil and gas leases.

"This is the first of several acquisitions we are considering," said Scott Boruff, Miller CEO. "The Ky-Tenn Oil, Inc. (KTO) oil and gas operations are located in Fentress, Morgan and Scott Counties, in Tennessee, very near our own operations.

"This cash and stock acquisition will provide us with an excellent base for building an even stronger lease position and operating team to capitalize on the growing Chattanooga Shale gas play in Tennessee."

"KTO has a strong management team and field staff that has agreed to remain and grow with Miller as we continue building the company," Boruff added.

Earlier this month, Miller Energy Resources also announced a $25.5 million drilling program consisting of up to 16 horizontal wells and 14 vertical wells to test three reservoir targets.

Tags: Miller Energy Resources