LONDON, Ky., June 26, 2014 (GLOBE NEWSWIRE) -- 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.
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) 864-3161Source:Puissant Industries, Inc.