Puissant Industries Inc. Announces Proved Oil And Natural Gas Reserves At December 31, 2012
LONDON, Ky., May 21, 2013 (GLOBE NEWSWIRE) — Puissant Industries, Inc. (OTCBB:PSSS) (“Puissant” or the “Company“), 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, 2012 were 14.843 billion cubic feet (Bcf) of natural gas and .177 million barrels of oil, or 2.650 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, 2012 was $18.084 million. The December 31, 2012 PV-10 was determined using the 12-month unweighted average of the first-day-of-the- month oil and natural gas prices for 2012 of $94.71 per barrel of oil and $2.752 per million British thermal units (MMbtu), respectively adjusted for quality, energy content, and other expenses.
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.
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 the future value of the Company’s common stock, the Company’s future financial value or its financial condition. A summary of the engineering report upon which the above values are based, is contained in the Company’s Form 10-K for the period ending December 31, 2012. 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.
CONTACT: Mark E. Holbrook Mark@psss.co