Puissant Industries, Inc. Announces Acquisition of Additional Proved Oil and Natural Gas Reserves
June 26 2014 - 7:01AM
Puissant Industries, Inc. (OTCBB:PSSS) (the "Company"), an
independent energy company currently focused on the natural gas and
liquids rich portion of the Devonian shale play in Eastern
Kentucky, announced today that its acquisition of additional proven
natural gas and oil reserves reports 1.180 billion cubic feet (Bcf)
of natural gas and .111 million barrels of oil, representing a
total increase of .3081 million barrels of oil equivalent (BOE)
(1Bbl – 6 Mcf basis), based on an independent engineering report as
of March 1, 2014, The Company's BOE at March 1, 2014 represents a
9.6% increase from the December 31, 2013 engineering report. The
NPV @ 10% increased from $29.227 million at December 31, 2013 to
$38.052 million, which represents a 30.2% increase
Mark Holbrook, the Company's Chief Executive Officer commented
that: "We are pleased with our additional provided
reserves. We will continue our strategy of obtaining
additional reserves through acquisitions and further supporting our
expansion by investing our oil and gas production into drilling
activities, knew wells and facilities…in so doing, we will grow
both organically and through acquisitions."
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. The key elements of the Company's business
strategy includes:
- 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;
- 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.
Notes Regarding the Independent Reserve
Report
1) The present value discounted at 10% of the estimated future
net cash flows before income taxes (PV-10) of the acquired proved
reserves at March 1, 2014 was $8.825 million. The March 1,
2014 PV-10 was determined using the 12-month un-weighted average of
the first day of the month and natural gas prices at $98.46 per
barrel of oil and 3.97 per million British thermal units (MMbtu),
respectively adjusted for quality, energy content and other
expenses.
2) 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.
Participants in the natural gas and oil industry, including the
Company, 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 company's properties without regard to
specific tax characteristics of such entities.
Disclaimer
Statements made in this press release that express the Company
or management's intentions, plans, beliefs, expectations or
predictions of future events, are forward-looking statements. The
words "believe," "expect," "intend," "estimate," "anticipate,"
"will" and similar expressions are intended to further identify
such forward-looking statements, although not all forward-looking
statements contain these identifying words. Those statements are
based on many assumptions and are subject to many known and unknown
risks, uncertainties and other factors that could cause the
Company's actual activities, results or performance to differ
materially from those anticipated or projected in such
forward-looking statements. For a discussion of these risks, see
the Company's Form S-1, which may be reviewed at www.sec.gov. In
addition, you should review the Company's periodic reports also
that are available at www.sec.gov. The Company cannot guarantee
future financial results, levels of activity, performance or
achievements and investors should not place undue reliance on the
Company's forward-looking statements. No information contained in
this press release should be construed as any indication whatsoever
of the Company's future revenues, future results of operations or
future stock price. The forward-looking
statements contained herein represent the judgment of the Company
as of the date of this press release, and the Company expressly
disclaims any intent, obligation or undertaking to update or revise
such forward-looking statements to reflect any change in the
Company's expectations with regard thereto or any change in events,
conditions or circumstances on which any such statements are
based.
CONTACT: For Puissant Industries, Inc.:
Mark Holbrook, Chief Executive Officer
(606) 864-3161
Puissant Industries (CE) (USOTC:PSSS)
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