KNOXVILLE, Tennessee – Miller Energy Resources, Inc. reported on Monday its results for the fourth quarter and fiscal year ended on April 30, 2012, with revenues for fiscal 2012 rising 55% to $35.4 million compared to $22.8 million in fiscal 2011.

Miller reported a net loss attributable to common stockholders of $19.5 million, or $0.48 per diluted share, in fiscal 2012 compared to a loss of $3.9 million, or $0.11 per diluted share, in fiscal 2011.

Fourth quarter revenues rose 38% to $8.9 million in fiscal 2012 compared to $6.4 million in the fourth quarter of fiscal 2011. Net loss attributable to common stockholders for the fourth quarter of fiscal 2012 was $8.4 million, or $0.20 per diluted share, compared to a loss of $1.4 million, or $0.05 per diluted share, in the fourth quarter of fiscal 2011. The 2011 results included a $6.9 million gain on acquisitions.

“Miller’s growth benefited from the success of new wells that we recompleted in Alaska during the past year,” stated Scott Boruff, CEO of Miller Energy Resources. “Our oil revenues increased 57% from the prior year and our Alaskan operations accounted for almost 96% of the total. We expect to accelerate our drilling activity in Alaska during fiscal 2013 with the addition of Rig 35 on the Osprey platform. The new rig is substantially complete and we expect to receive final certification in the near future. Rig 35 will be tasked initially with repairing, recompleting and redeveloping key wells on the Osprey platform.

“We believe our strategy to restore existing wells to production and further develop our Alaskan properties will be the key factor that drives Miller’s future revenues and profit growth. With the recent signing of a new $100 million credit facility, we are very positive about having the resources to pursue our capital development activities in fiscal 2013.”

Company and Financial Highlights

• Total revenues increased 55% to $35.4 million in fiscal 2012, compared to $22.8 million for fiscal 2011.



• Oil and natural gas revenues increased 54% to $32.5 million in fiscal 2012 compared to $21.1 million for fiscal 2011.



• Total net production (including fuel gas) increased 24% to 405,799 BOE in fiscal 2012 compared to 327,712 BOE for fiscal 2011.



• Average realized oil price increased 23% to $93.10 in fiscal 2012 compared to $75.75 for fiscal 2011.



• Closed new $100 million credit on June 29, 2012. The initial proceeds were used to pay off the prior credit facility in the amount of $26.2 million and redeem the outstanding Series A Cumulative Preferred Stock for $10.8 million.



• Renegotiated Alaskan crude oil sales contract with new index for pricing. The new index has historically averaged a higher sales price than the previous pricing agreement.



• Miller was awarded Susitna Basin Exploration License No. 5 on April 1, 2012. The award includes an exclusive ten-year license to explore for oil and natural gas on 45,764 acres adjacent to land the Company was previously awarded a license for in the Susitna Basin.



• Miller placed significant emphasis on rig construction and modification activities in fiscal 2012. Total capital spending rose 200% from 2011, primarily due to construction costs of Rig 35 and modification costs of Rig 34.



• Rig 35 is substantially completed on the Osprey platform and is awaiting final certification by the Alaska Oil and Gas Conservation Commission.



• The Company sold a generator $2.0 million from its Kustatan facility in May 2012, following our fiscal 2012 year end.



• Miller received $4.3 million in June 2012 from the termination of its commodity derivative contracts, which were settled against the NYMEX WTI Cushing Index, following our fiscal 2012 year end. At the same time, the Company entered into several new commodity derivative contracts for comparable volume which will be settled against the Brent Crude Oil Index.

Fourth Quarter Results

Total revenues for the fourth quarter ended April 30, 2012 increased 38% to $8.9 million, compared to $6.4 million for the same quarter in fiscal year 2011. The increase was attributable to new production from the Redoubt Shoals field and higher average realized sales prices.

Total operating costs and expenses increased 37% to $16.3 million for the fourth quarter ended April 30, 2012, compared with $11.8 million for the same quarter in fiscal year 2011, primarily reflecting the Company’s increased scale of operations in Alaska. A significant portion of this increase was attributable to increased general and administrative expenses for the quarter. General and administrative expenses increased $3.6 million due to increases in non-cash compensation, travel, and professional fees.

The Company recorded other expenses of $4.3 million for the fourth quarter ended April 30, 2012, compared to other income of $4.1 million for the same period in fiscal year 2011. The decrease resulted from a combination of a $6.9 million gain on acquisitions included during the fourth quarter of 2011 and a $1.3 million increase in our loss on derivatives compared to the same period in the prior year.

The Company recorded a net loss attributable to common stockholders of $8.4 million, or $0.20 per diluted share, for the fourth quarter ended April 30, 2012, compared to a loss of $1.4 million, or $0.05 per diluted share for the same period in fiscal year 2011. As previously noted, the fourth quarter 2011 results include a $6.9 million gain on acquisitions.

Fiscal Year Results

Total revenues for the fiscal year ended April 30, 2012 increased 55% to $35.4 million, compared to $22.8 million for fiscal 2011. The increase in revenues is a result of both new production from the Company’s Redoubt Shoals field and an increase in the average realized sales price. For the twelve months ended April 30, 2012, the Company produced and sold 371,843 BOE compared with 294,157 BOE in fiscal year 2011.

Oil revenues increased 57% to $31.9 million in fiscal 2012 and accounted for 98% of total oil and gas revenues. Prices received for crude oil in 2012 were 23% higher than 2011. The average realized oil price in 2012 was $93.10 per barrel compared with $75.75 per barrel in 2011. Natural gas average realized prices declined 27% to $3.47 per mcf in 2012 compared with $4.77 per mcf in 2011.

Total operating costs and expenses increased 62% to $60.5 million, compared to $37.4 million in fiscal year 2011. A significant portion of the increase was related to higher oil and gas operating costs, general and administrative expenses, and depreciation, depletion and amortization for the twelve months ended April 30, 2012. Oil and gas operating costs increased $5.2 million to $14.9 million primarily due to higher costs associated with returning the Osprey platform and Kustatan production facility to operational status. General and administrative expenses increased $15.2 million to $29.7 million due to increases in salaries, professional fees, travel, employee benefits, non-cash compensation, and other fees. Depreciation, depletion and amortization increased $2.3 million to $13.3 million due to the increase in production.

The Company recorded a net loss attributable to common stockholders of $19.5 million, or $0.48 per diluted share, compared with a loss of $3.9 million, or $0.11 per diluted share, for the same period in fiscal year 2011.