The majority of Panhandle Oil and Gas Inc.’s revenues are derived from the production and sale of oil and natural gas. The Company’s oil and gas holdings, including its mineral acreage and its interests in producing wells, both working interests and royalty interests, are centered in Oklahoma. Panhandle does not operate any of its oil and gas properties. Exploration on and development of the Company’s oil and gas properties are conducted in association with operating oil and gas companies, primarily large independent companies. The Company has been an active working interest participant for many years in wells drilled on the Company’s mineral acreage and in third party drilling prospects. A large percentage of the Company’s drilling participations continue to be on properties in which the Company owns mineral acreage, and in many cases, already owns an interest in a producing well in the unit. This “increased density” drilling has accounted for a significant part of the successful oil and gas wells completed during recent years and has added significant reserves for the Company. The Company is very active in gas resource projects on its mineral acreage in southeast Oklahoma and Arkansas. Activity in these projects is expected to substantially increase in fiscal 2008.
PRINCIPAL AREAS OF OPERATION
Arkansas
Oklahoma
Texas
Corporate Headquarters
Oklahoma City, Oklahoma