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Exhibit 99.2
Miller Exploration Company Announces New Senior Credit Facility with Bank One
and Amendment of the terms of its indebtedness withVeritas DGC Land, Inc.
HOUSTON, Texas--(PR Newswire)-July 21, 2000-Miller Exploration Company
(Nasdaq:MEXP) (the "Company" or "MEXP") announces new senior credit facility and
amendment of the terms of its indebtedness with Veritas DGC Land, Inc.
BANK ONE CREDIT FACILITY
On July 19, 2000, Miller Exploration closed on a new senior credit facility with
Bank One, Texas NA, which replaced its existing credit facility with Bank of
Montreal. The new credit facility has a 30-month term and a current borrowing
base of $11.5 million. The interest rate has been reduced from prime plus 3
1/2% to either prime plus 2% or LIBOR plus 4% at the Company's option. The
Company will continue its de-leveraging efforts and will make monthly principal
payments of $500,000 until the next borrowing base re-determination which is
scheduled for January 1, 2001. The Company's debt balance has been reduced from
$37 million to $11.5 million over the past year and a half.
VERITAS AMENDMENT
On July 19, 2000, Miller Exploration also entered into an agreement to amend the
$4.7 million Note, Warrant and Registration Rights Agreements with Veritas DGC
Land, Inc. Under this Amendment the term of the note has been extended 36
months and the interest rate reduced significantly from 18% to 9 3/4%. In
connection with the extension and material reduction in the interest rate, MEXP
upon consummation of the amendment, made a $500,000 payment of principal and
will pay another $500,000 by December 31, 2000.
Miller Exploration Company President Kelly Miller said, " We are looking forward
to the new relationship with the senior lender Bank One, Texas NA. Bank One is
recognized as a premier energy bank and at this early stage, the Company has
already experienced their professionalism and responsiveness during the closing
process. With the combined result of the previously announced successful
capital formation efforts with Guardian Energy Management, Eagle Investments,
Inc. and ECCO Investments, LLC and the lower level of debt and reduced interest
rates, the Company will be able to retain higher working interests in its core
area of the Mississippi Salt Basin and further develop its 3-D prospects in the
Mississippi Salt Basin. These events have also created the flexibility to
pursue outside ventures and other strategic opportunities."
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OTHER
The Company intends to release 2/nd/ quarter earnings after the market closes on
Monday,
August 14/th/.
MEXP is an independent oil and gas exploration and production company with
established exploration efforts concentrated primarily in the Mississippi Salt
Basin. MEXP emphasizes the use of 3-D seismic data analysis and imaging, as
well as other emerging technologies, to explore for and develop oil and natural
gas in its core exploration areas. MEXP is the successor to the independent oil
and natural gas exploration and production business first established in
Michigan by members of the Miller family in 1925. The Company's common shares
trade on the NASDAQ under the symbol MEXP.
Except for the historical data herein, the matters discussed in this press
release are opinions, forward looking statements, assumptions, and estimates
that are subject to a wide range of risks and uncertainties, and there is no
assurance that the Company's goals, estimates and expectations will be realized.
Any number of important factors could cause actual results to differ materially
from those in the forward looking statements, including but not limited to the
volatility of oil and gas prices and changes in oil and gas drilling and
acquisition programs, operating risks, production rates, reserve replacement,
reserve estimates, the effect of our hedging activities, the actions of our
customers and competitors, government regulations, changes in general economic
conditions, and the state of domestic capital markets and uncertainties more
fully described in the Company's Annual Report on Form 10-K for the year ended
December 31, 1999 as filed with the Securities and Exchange Commission.
CONTACT: Miller Exploration Company Kelly E. Miller, President & CEO
P.O. Box 348 [email protected]
Traverse City, MI 49685-0348 www.mexp.com
Phone: (231) 941-0004 Deanna Cannon, V.Pres. of Finance
Fax: (231) 941-8312 [email protected]
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