Miller Energy Announces Preliminary Agreement With Second Lien Lenders and Files for Reorganization Under Chapter 11 of the U.S. Bankruptcy Code

HOUSTON, TX--(Marketwired - October 01, 2015) - Miller Energy Resources, Inc. (OTC PINK: MILL) ("Miller Energy" or the "Company") announced today that it and certain of its subsidiaries have filed voluntary petitions for reorganization (the "Chapter 11 Cases") under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Alaska ("Bankruptcy Court"). Miller Energy has agreed upon a term sheet with Apollo Investment Corp. and certain affiliates of Highbridge Capital Strategies (together, the "Second Lien Lenders") for a comprehensive financial restructuring that would substantially reduce the Company's indebtedness, provide a long-term solution for its balance sheet, enable the Company to operate with minimal disruption and loss of productivity, and protect and preserve its going-concern value for all stakeholders.

The Chapter 11 Cases were filed pursuant to a term sheet setting forth a proposed plan of reorganization ("Plan Term Sheet") and a debtor-in-possession loan facility (the "DIP Facility") of up to $20 million (together the Plan Term Sheet and the DIP Facility term sheet are referred to as the "Pre-Negotiated Bankruptcy Plan" among the Company and the Second Lien Lenders). The Pre-Negotiated Bankruptcy Plan requires that the Second Lien Lenders support and provide funding for a proposed plan of reorganization of the Company and its subsidiaries on terms and conditions substantially similar to those set forth in the Plan Term Sheet.

Miller Energy and its subsidiaries will continue to manage their properties and operate their businesses in the ordinary course throughout the Chapter 11 process while the Company seeks confirmation of the Pre-Negotiated Bankruptcy Plan under the jurisdiction of the Bankruptcy Court.

To oversee the bankruptcy process and seek out any additional opportunities outside the Pre-Negotiated Bankruptcy Plan to maximize the value of the Company and its assets, Miller's Board of Directors has established a restructuring committee (the "Restructuring Committee") consisting of four members with equal voting power. The four members are the Company's three independent directors -- Mr. Haag Sherman, Mr. Bob Gower and Mr. Gerald Hannahs -- and Miller's Chief Executive Officer, Mr. Carl Giesler.