SUMMARY OF OPERATIONS
Puissant’s operations encompass approximately 10,000 acres in Eastern Kentucky of oil and gas properties covering six productive geological formations, including the Big Lime, Waverly, Devonian Shale, Corniferous, Stones River and Knox with formations at depths from 850 feet to nearly 3500 feet. Puissant’s exploration, development and production activities involve low risk development with stable oil and gas production. This acreage is positioned at the west end of one of the largest Devonian Shale gas fields in the country.
At least seventy-five percent (75%) of Puissant’s acreage is being held by production or optioned with a multi-year inventory of low-risk, liquids-rich development opportunities to grow production and reserves. Puissant’s focus is to pursue Organic drilling activity that provides the opportunity for repeatable success and meaningful production growth, both on grassroots oil and gas plays and on development of previously acquired properties. The Company is currently producing from oil and gas fields it owns and operates with a primary focus on the redevelopment of proven producing oil and gas properties.
Puissant has access to approximately 2.650 million barrels of oil equivalent (BOE) (1 Bbl = 6 Miff basis) of proved reserves as of December 31, 2012. The Net Present Value at December 31, 2012, discounted at 10% of the estimated future net cash flow before income taxes (PV-10) of our total proved reserves, is $18.084 million.