Miller Energy Resources Completes RU-3 Gas Well

RU-3 Gas Well Flowing

Miller Energy Resources, Inc. (Miller) (NYSE: MILL) announced that its Alaskan subsidiary, Cook Inlet Energy (CIE), has successfully brought a new gas well, RU-3, into production. CIE completed the RU-3 gas workover on Osprey Platform with Miller's Rig-35. After a successful well test on February 16, the gas well was immediately put into production. This new source of natural gas, together with gas produced from CIE's RU-4 well which was previously brought online, further eliminates the need to purchase costly fuel gas from third parties. RU-3 showed an initial post-workover shut-in pressure of 2,135 PSI. The subsequent four-point flow test culminated in a peak flow rate of 3.7 million cubic feet of gas per day (MMscf/d) at a 25/64ths inch choke setting.

The RU-3 work-over consisted of re-completing the well to access a behind pipe gas accumulation in the Lower Tyonek gas sands at a measured depth of approximately 14,800'. RU-3 encountered an average of 20' of net gas pay across an estimated 150-acre reservoir with an estimated minimum of 1.2 BCF of remaining recoverable reserves. The zone produced a total of 452 MMscf between May and December of 2003. At that time, the well went off production due to mechanical problems and had subsequently been plugged back to a shallower zone for an attempted completion. CIE successfully completed a complex fishing job to remove materials and equipment left in the wellbore from this previous completion attempt in order to reopen the deeper proven reservoir and reestablish production.