Miller Energy Resources (NYSE: MILL) Unlocking Alaska August 2014 / EnerCom Conference
Executive Summary Company Highlights Alaska Assets Miller Resources, Inc. Highlights (1) Stock Ticker (NYSE) MILL Common Stock Price 4.78 Market Capitalization 221.3 million Total Capitalization 535.9 million Ryder Scott Total…
Miller Energy Value Proposition State-Of-the-Art Large Undeveloped Infrastructure Oil Potential Favorable Alaska Tax Near-term Value & Commodity Price Catalysts Environment 4
Four Distinct Fields in Alaska Cook Inlet, AK North Slope, AK Redoubt West McArthur River (WMRU) North Fork Badami (Savant)(1) Current net production of Current net production of Current net production of Net production of 600…
Favorable Alaskan Tax Policy and Pricing Cook Inlet Tax Credits Tax Credit Receipts 35.0 Tax credits substantially reduce risks 30.0 associated with exploration and production 28.0 These credits allow 20% to 65% of 21.8…
Increasing Capital Availability at a Decreasing Cost Decreasing Cost of Capital Guggenheim: 1st Lien Apollo: 1st Lien Apollo / HighBridge 2nd Apollo / HighBridge 75mm Lien 2nd Lien: 11.75% 175mm 175mm 30.00% KeyBank, CIT, Mutual…
Pro Forma Capitalization Table (in 000s) Pro Forma Revolving Credit Facility 4/30/2014(1) Revolving Credit Facility ( L+300 - L+400 ) 36,000.0 250 million facility Second Lien Term Loan ( 11.75% ) 175,000.0 60 million initial…
Proven Acquisition & Development Success Production Growth (Net BOE/D) 4,000 3,070 3,000 436% Increase 2,000 899 1,000 573 0 2012 2013 2014 34.0 million 37.9 million 139.3 million Estimate 160 million net capital invested in…
Proved Developed Reserve PV-10 & Volume Proved Developed PV-10 (mm) Proved Developed Volume (mmboe) 300.0 7.0 271 265 6.4 6.1 250.0 6.0 5.0 mmboe 200.0 million 4.0 150.0 108 3.0 100.0 2.0 1.6 50.0 1.0 0.0…
Total Reserves Total 3P Reserves Total 1P Reserves PV-10: 829.2mm, 32.2 MBOE PV-10: 447.6mm, 11.7 MBOE 198mm 3P 176mm 448mm PUD 1P 271mm 184mm PD 2P 3P total reserves do not include credit for RU-12 and other step out…
Large Reserve Base & Strong Asset Coverage ( in millions) 1,200.0 1,034.2 Significant asset 1,000.0 coverage above 198.0 P3 corporate capitalization 800.0 183.6 498.3 P2 600.0 536MM current EV 447.6 221.3 at…
Redoubt Shoal Hemlock Structure Highlights Step out drilling commenced with RU-9 and we expect to have drilled into four new fault blocks by end of 2015 Positive DST tests in North & South Osprey Step Outs in 1960s Platform…
Redoubt Shoal Hemlock Structure Highlights RU-9 drilled logged and cased to TD and now included as PUD, about to complete and bring online RU-9 in the Southern Step out of the Redoubt Shoal structure Large four way structure…
Redoubt Unit Production History 16
Redoubt Shoal Hemlock Structure Initial Steep decline as a result of well not yet reaching radial flow Well has nearly reached radial flow, decline rates flat, good pressure support 17
West McArthur River Unit Highlights 13.3 MMBbls recovered from WMRU to date Greater than 20% primary recovery based on estimated oil in place Positive initial results from WMRU-2B with indications of additional primary recovery…
North Fork Unit Includes six (6) natural gas wells, production and processing equipment and 15,464 acres Multi-year firm natural gas sales contract with ENSTAR (Alaska Utility) currently at 7.03/mcf Expected to add 20MM in annual…
North Slope Savant Acquisition Badami Binding agreement to acquire Savant Alaska, LLC subject to due diligence and regulatory approval, for 9.0 MM Savant to become wholly-owned subsidiary of MILL MILL to indirectly own 67.5% working…
Alaska Drilling Rig Status Rig Terms Size/Type Location Status Future Plans Mgmt. Est. Value Rig-34 Company 750Hp, land Nikiski Stacked Possibly use to drill Susitna 5 million Owned based, 6,000' well depth Rig-35 Company 2,000Hp,…
Drilling Inventory FY 2015 Outlook Cook Inlet, AK North Slope, AK Redoubt West McArthur River (WMRU) North Fork Badami (Savant) RU 9: South Step Out WF 3 Multiple PUD locations 2 potential fracs RU 12: Northern Fault Block WMRU-8…
Miller Energy Value Proposition Step out drilling program with potential to significantly increase 1P reserves 4 distinct, world-class producing fields (Redoubt, WMRU, North Fork, Badami Large Undeveloped Oil Plays (acquisition…
Contact Information Miller Energy Resources, Inc. 9721 Cogdill Road, Suite 302 Knoxville, TN 37932-3425 Phone: 865-223-6575 infomillerenergyresources.com www.millerenergyresources.com Investor Relations MZ Group - North…
Appendix: Management Biographies Deloy Miller - Mr. Miller, our founder, has been Chairman of the Board of Directors since December 1996, and was CEO from 1967 to August 2008, and COO from August 2008 to July 2013. Since then, Mr. Miller…
Appendix: Hedging Hedging Summary Over 90% of current net oil production hedged Charge for novation of hedges to KeyBanc reduced price by 0.30/bbl The North Fork Unit has the vast majority of its gas production effectively hedged…
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