Miller Energy Resources announced that it has entered into a contract with Voorhees Equipment and Consulting, Inc. for the custom construction and purchase of a drilling rig to be used on Miller's Osprey offshore platform located in the Cook Inlet of Alaska. The contract sets a total purchase price of $17,927,770 for the rig. The addition of the rig will allow Miller to enhance its capabilities on the Osprey Platform, where Miller has had recent success. Earlier this week, Miller announced that it had reworked the RU-1 well and that it is producing 350 barrels of oil per day.
"A tremendous amount of work went into identifying a manufacturer and designing a custom rig for the Osprey Platform. Once in place, we will be able to initiate our aggressive offshore drilling program, as well as having the rig available for any routine maintenance or future repairs that are necessary," said Scott M. Boruff, Miller CEO. "We have already demonstrated the potential of the Osprey platform with the recent rework of RU-1 which continues to out produce expected rates. We expect this rig to allow us to return the platform to full functionality, which is key as we continue to add significant production in Alaska as part of our strategy to add long term value for our shareholders".
