Miller Energy Resources Inc., Knoxville, Tenn., has signed a nonbinding letter of intent to buy Alaskan operating assets of Buccaneer Energy for $40-50 million.
Buccaneer, based in Sydney, Aus., has been liquidating assets in a recapitalization program. It has onshore and offshore operations in Alaska’s Cook Inlet and along the US Gulf Coast.
Miller Energy said the acquisition from Buccaneer, if completed, would involve about 1.9 MMboe of proved oil and gas reserves and 1,700 boe/d of production. It has existing producing and processing assets in the Cook Inlet.