Puissant Industries Inc. Announces Proved Oil and Natural Gas Reserves at December 31, 2013
PR-Inside.com: 2014-03-19 14:04:20
London, Kentucky (FSCwire) - Puissant Industries, Inc. (OTCQB: PSSSPuissantâ or the “Company (Corporate Website: psss.co), an independent energy company currently focused on the natural gas and liquids rich portion of the Devonian shale play in Eastern Kentucky, today announced that based on an independent engineering report its proven natural gas and oil reserves at December 31, 2013 were 15.950 billion cubic feet (Bcf) of natural gas, .197 million barrels of oil, and .327 million barrels of natural gas liquids (NGL) or 3.182 million barrels of oil equivalent (BOE)(1Bbl = 6 Mcf basis).
The present value, discounted at 10%, of the estimated future net cash flows before income taxes (PV-10) of the Company’s total proved reserves at December 31, 2013 was $29.227 million. The PV-10 was determined using the 12-month unweighted average of the first-day-of-the- month oil, natural gas and NGL prices for 2013 of $96.94 per barrel of oil $3.671 per million British thermal units (MMbtu) and $36.68 per barrel of NGL respectively adjusted for quality, energy content, and other expenses.
This engineering report represents an increase of 20% in BOE from the 2.650 million BOE in the last engineering report at December 31, 2012. These proved reserve additions equate to replacing 1736% of the Company’s full year 2013 production. The PV-10 of $29.227 million was an increase of 61.62% from last year’s report of $18.084 million.
PV-10 is a non-GAAP financial measure and generally differs from Standardized Measure, the most directly comparable GAAP financial measure, because it does not include the effects of income taxes on future net revenues. PV-10 is not an estimate of the fair market values of the properties. Puissant and others in the industry use PV-10 as a measure to compare the relative size and value of proved reserves held by companies and the potential return on investment related to the companies properties without regard to specific tax characteristics of such entities.
About Puissant Industries, Inc.
Puissant Industries, Inc. is engaged in oil and gas exploration and development activities in fractured shale formations located in Eastern Kentucky. Puissant’s business strategy is to grow its reserves, production and cash flow on a cost-efficient basis. The key elements of this business strategy include:
• Developing and exploiting Puissant’s existing properties with a multi-year drilling program in the Appalachian Basin Devonian Shale;
• Maintain long-life reserve base by focusing on acreage acquisition and development activities on resources that target long-life gas and oil reserves; and
• Use a disciplined financial approach to be financially strong, yet flexible, through the prudent management of our balance sheet and active management of commodity price volatility.
Mark E. Holbrook, President
This press release contains forward-looking statements. The words or phrases "would be," "will allow," "intends to," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," or similar expressions are intended to identify "forward-looking statements." Actual results could differ materially from those projected in the Company’s business plan and the information presented above. The information contained in this press release should not be construed as an indication in any way whatsoever of future production levels, the future value of the Company’s common stock, the Company’s future financial value or its present or future financial condition. You should be aware that the SEC does not accept the above stated values to be included as assets on the Company’s balance sheet. The Company's filings may be accessed at the SEC's Edgar system at www.sec.gov. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company cautions readers not to place reliance on such statements. Unless otherwise required by applicable law, we do not undertake, and we specifically disclaim any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement.
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Source: Puissant Industries Inc. (OTCQB:PSSS)
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