Miller Energy Resources (MILL) is an oil and gas exploration and production company primarily focused on the Cook Inlet area of Alaska. On 12/10/2009, MILL acquired Cook Inlet Energy, consisting of the former Alaskan assets of Pacific Energy Resources, in a competitive bankruptcy auction, paying less than $5 million. Immediately after, MILL wrote the value of the assets up to $480 million, booking a pre-tax gain on the acquisition of $460 million.This unusual transaction and the dubious background of Miller's management and financial partners has been covered in articles from The Street Sweeper, and I would recommend you read them for additional background information, however I believe a brief history of these assets is useful. The Cook Inlet assets that Miller currently owns were originally acquired and developed by Forcenergy in the late 90s. Forcenergy went bankrupt and eventually merged with Forrest Oil Corp in 2000. Forest then sold the Alaskan assets of Forcenergy to Pacific Energy in 2007, and Pacific Energy went bankrupt in early 2009, finally selling a group of their Alaska assets to Miller Energy.This article will take a closer look at the flawed assumptions MILL and their investors are using to derive the company's reserve value, as well as the shaky financial footing the company is currently on, both of which should concern current and potential investors in MILL, especially if history repeats itself.