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Gold/Mining/Energy : ARAKIS: HIGH RISK OIL PLAY (AKSEF) -- Ignore unavailable to you. Want to Upgrade?

To: Robert Meany who wrote (7607)	1/12/1998 10:53:00 AM
From: regine	Read Replies (1) \| Respond to of 9164

TO ALL Monday January 12, 7:33 am Eastern Time Company Press Release Miller Petroleum Inc. Acquires Assets of AKS Energy Inc. With Total Net Reserves of $4,591,501 HUNTSVILLE, Tenn.--(BUSINESS WIRE)--Jan. 12, 1998--Miller Petroleum Inc. (OTCBB:MILL - news; ''Miller'') announced Monday the recent acquisition of 100% of the assets of AKS Energy Inc. (''AKS''), a wholly owned subsidiary of Arakis Energy Corp. [Nasdaq:AKSEF - news] of Calgary, Canada. The total purchase price was $2,308,207, of which $1,731,155 was for reserves. A recent study shows the net total proved reserves for AKS, as of Jan. 1, 1997, were 5,769 MMCF gas and 55,153 Bbls. oil for a NPV10 of $4,591,501. This would represent an acquisition cost for Miller of $0.28/MCFe, compared with an industry average of $0.60 to $0.85/MCFe. The report was completed by Wright & Company Inc., a professional petroleum engineering firm of Brentwood, Tenn., which has no interest in either AKS or Miller and performed their services for AKS at their standard rates. Assets, acquired through the AKS purchase include over 40,000 acres of leaseholds in the Counties of Leslie, Bell, Knox, Harlan and Clay, Ky. and Campbell County, Tenn., with 23 wells producing a net 500 MCFD and 12 BOPD. Miller's plans for the AKS properties for the next four months include additional drilling and stimulation work and pipeline installation. Also included in the agreement are an Ingersoll-Rand RD 10 drilling rig, four service rigs, support equipment and supplies, and a shop on 30 acres of land near Corbin, Ky. Miller plans to utilize the equipment in its current operations, however it anticipates selling of the shop and 30 acres of land. Deloy Miller, CEO, stated, ''We expect a very good year as a result of the AKS acquisition and the aggressive drilling program we have initiated. As we strive for continued growth, the company is actively negotiating the purchase of three additional strategic oil and gas properties for the coming year.'' Miller Petroleum Inc. is a Huntsville-based, publicly owned oil and gas exploration, development and production firm. Originally founded in 1967 by CEO Deloy Miller as Miller Drilling, a drilling and well completion contractor, the company owns the rights to develop oil and natural gas on approximately 50,000 acres in the Appalachian Basin. Contact: Continental Capital & Equity Corp. Juan Ferreira, 407/875-1110 or Miller Petroleum Inc. Lawrence LaRue, 423/663-9457 More Quotes and News: Arakis Energy Corp (Nasdaq:AKSEF - news) Miller Petroleum Inc (OTC BB:MILL - news)