Miller Energy Resources, an oil and natural gas exploration, production and drilling company, has sucured a $5m loan from PlainsCapital Bank to expand operations in Alaska.
The company will utilize the proceeds from this financing to fund the initial phase of its winter development program in the Cook Inlet area of Alaska.
Miller CEO Scott Boruff said that this financing will allow the company to continue to boost its production in Alaska without any dilution of its stock or encumbering any of its assets.
"We have been committed to obtaining the lowest cost financing available, and this bridge loan allows us to stay on schedule to meet our 2011 operating and exploration goals while we complete documentation of the permanent credit facility," Boruff said.
The short term loan matures on 21 February 2011, at which time the company anticipates the permanent facility to be in place.
According to the company, the emphasis of the winter program is to target wells that were producing, but were shut-in by previous owners who lacked the equipment and funds to perform the necessary repairs.