Panhandle Oil and Gas Inc. Announces Fiscal Year End 2017 Reserves Update

OKLAHOMA CITY, Nov. 8, 2017

Proved Reserves

Panhandle's estimated total proved reserves at Sept. 30, 2017, increased 36% to 168.6 Bcfe from 124.0 Bcfe reported for Sept. 30, 2016, based on SEC mandated pricing. SEC prices at the wellhead at Sept. 30, 2017, were $2.81 per Mcf of natural gas, $46.31 per barrel of oil and $17.55 per barrel of NGL as compared to Sept. 30, 2016, SEC wellhead prices of $1.97 per Mcf of natural gas, $36.77 per barrel of oil and $12.22 per barrel of NGL. Panhandle's total estimated proved reserves are approximately 72% natural gas, 20% oil and 8% NGL. Sept. 30, 2017 and 2016, proved reserves were calculated by DeGolyer and MacNaughton, an independent petroleum engineering consulting firm.

At Sept. 30, 2017, approximately 66% of total proved reserves, or 111.7 Bcfe, are categorized as proved developed as compared to 66%, or 81.4 Bcfe, at Sept. 30, 2016. Proved undeveloped reserves, or PUD, comprised 34% of total proved reserves, or 56.9 Bcfe, at Sept. 30, 2017, as compared to 34%, or 42.6 Bcfe, at Sept. 30, 2016.

Management Comments

Paul F. Blanchard, Panhandle's President and CEO, said: "The Company's total proved reserves increased 36% to 168.6 Bcfe at fiscal year-end 2017, as compared to fiscal year-end 2016. This reserve growth is primarily attributable to successful drilling programs in the southeastern Oklahoma (Arkoma Basin) Woodford, the STACK Cana Woodford in western Oklahoma and the Eagle Ford Shale in South Texas, as well as improved SEC prices at fiscal year-end 2017 versus fiscal year-end 2016.

"Proved developed reserves increased 37% to 111.7 Bcfe at year-end 2017 from 81.4 Bcfe the prior year. This increase was principally driven by the aforementioned 2017 drilling activity.  PUD reserves remained at 34% of total proved reserves.