Michigan

Michigan Operations

ANTRIM SHALE:

Miller Energy has been producing oil & natural gas in Michigan since the early 1950′s. Beginning in 1989, Miller Energy began producing natural gas from the Antrim Shale formation. To date Miller Energy has drilled more than 900 Antrim Shale gas wells in the northern Michigan Basin.

The Antrim Shale is a major source of shale gas, and produces natural gas along a swath of land across the northern part of the state. Most natural gas production is in Antrim, Crawford, Montmorency, Oscoda and Otsego counties.

Although the Antrim Shale has produced gas since the 1940s, the play was not active until the late 1980s. During the 1990s, the Antrim became the most actively drilled shale gas play in the US, with thousands of wells drilled. In more recent years, the use of directional drilling has allowed operators to produce the gas more efficiently and effectively.

To date, the shale has produced more than 2.5 TCF from more than 9,000 wells. In 2007, the Antrim gas field produced 136 billion cubic feet of gas, making it the 13th-largest source of natural gas in the United States.

TRENTON BLACK RIVER EXPLORATORY PROJECT:

Miller Energy is actively exploring the Trenton Black River formation in Southeast Michigan. MEC participated in drilling a discovery well in 2011. Since then the Company has completed 25  successful wells, establishing a success rate of 76%, and has a good inventory of additional locations. The Company continues to look for new projects to explore.

Production from the Trenton-Black River Formation was first established in the Michigan Basin in 1920.  Subsequent discoveries were small and sporadic until the giant Albion Scipio Field was discovered in 1957.  The discovery of this field, at one time the largest onshore oil field east of the Mississippi, set off an active exploration effort in southern Michigan with both major oil companies and independents participating in the action.

The advent of 3-D seismic technology and horizontal drilling has opened a new era of Trenton Black River exploration in the Basin, yielding several new significant discoveries in the process of radically improving success rates.   These new tools have allowed operators to enhance production, increase recoveries, and add new reserves at impressive rates.  Miller Energy continues to participate at the forefront of the Trenton Black River development, engaging in new 3-D seismic acquisition programs, pursuing exploratory drilling projects and continued successful development of established reserves.