The New York Stock Exchange notified Miller Energy Resources, Inc that Miller’s common stock would be suspended and the process to delist the company would begin at the close of markets today.
According to the notice, the oil company has failed to maintain an average market capitalization of $15 million or more for the past 30 days which prompted the actions by the exchange.
During Miller Energy’s earnings call this week it was noted that this action may be taken due to recent fiscal difficulties. the company would not be filing for bankruptcy.
The company will not be filing for bankruptcy according to Chief Financial Officer Carl Giesler.
He added Miller still has other assets which have not been included in the calculations…
Giesler: “Let’s pause here though to underscore that we deeply believe in our assets. We have a number of lower risk, high value and high growth drilling opportunities that we expect will keep us busy for years.”
Miller Energy, which owns Cook Inlet Energy, compounded their debt trouble with the unsuccessful well #3 drilled in the West Forelands. As a result, Miller’s debt now exceeds the value of its assets, at least on paper.
Miller released a statement today saying, “The Company expects to avail itself of its right to have this decision reviewed by the Board of Directors of the NYSE and believes there are many factors which the NYSE should consider before taking final action, including the advanced status of the Miller Energy’s capital repositioning efforts and the progress made towards realizing the value of and growth in the Company’s assets.
The Company intends to have trading in its stock resume on the OTC [Over the Counter] markets as early as tomorrow.
Neither the actions undertaken by the staff of the NYSE nor the transition to the OTC markets will affect Miller Energy’s business operations.”