Miller Energy Resources Obtains North Slope Pricing for its Alaska Oil
Miller Energy Resources (NYSE: MILL) announced today that its wholly-owned subsidiary, Cook Inlet Energy, LLC, has executed a new contract for the sale of its Alaska oil, which resulted in a substantial increase in the purchase price.
The previous contract priced the oil based on the NYMEX Settlement prices for West Texas Intermediate (WTI), less certain transportation, quality, and other deductions. The new contract provides for pricing based on West Coast Alaskan North Slope (ANS) crude oil, so long as the ANS price exceeds the WTI price by at least $2.285. Similar deductions are in place for transportation, quality, and other costs. Currently, ANS is trading approximately $15 above WTI.
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