Miller Petroleum, an oil and gas exploration and production company, has signed a exploration and drilling agreement with a subsidiary of Atlas Energy Resources.
Under the agreement, Miller has assigned to Atlas a 100% working interest and 80% net revenue interest in its oil and gas leases comprising 27,620 acres in Koppers North and Koppers South in Campbell County, Tennessee; a 100% working interest in eight existing wells on the Koppers acreage, and a 100% working interest and 82.5% net revenue interest in oil and gas leases comprising of 1,952 acres adjacent to the Koppers acreage.
The agreement with Atlas also provides for Miller, at its option, to participate in up to 10 wells to be drilled on the assigned acreage at up to a 25% working interest. In addition, Miller and Atlas entered into a two-year drilling contract, with Miller acquiring two rigs to drill wells for Atlas in Tennessee.
Miller and Atlas have also entered into a natural gas transportation agreement; and a natural gas processing agreement pursuant to which Atlas will provide transportation and natural gas processing services to Miller and deliver back to Miller natural gas with a heating value of 1,100BTUs per cubic foot.
Deloy Miller, chairman and CEO of Miller, said: This is a momentous deal for Miller shareholders and a tremendous time to be in the oil and gas exploration and drilling business. We are very excited about the opportunity to partner with Atlas, which is one of the leading oil and gas exploration and drilling companies in the US.