Panhandle Oil and Gas Inc. Reports Closing of Purchase of Eagle Ford Shale and Expansion of Bank Credit Facility

Panhandle Oil & Gas LogoOKLAHOMA CITY, June 18, 2014 – /PRNewswire/PANHANDLE OIL AND GAS INC. (PHX) today reported that on June 17, 2014, it closed on the acquisition of certain Eagle Ford assets. The transaction was first announced in a May 15, 2014, press release reporting the signing of an intent to purchase the assets. The purchase price was $80,400,000. This acquisition was funded by utilizing the Company’s bank credit facility. The assets were acquired from private sellers and currently include a 16% non-operated working interest in an 11,100 gross leasehold acres (1,775 net acres) block that is largely contiguous and entirely held by production, 63 producing wells (57 Eagle Ford, 5 Pearsall, and 1 Buda), 1 well being drilled and 109 undeveloped Eagle Ford locations. Three wells are in the completion phase. This property is currently being developed with a one drilling rig program by the operator, privately held Cheyenne Petroleum Company, a well-financed Oklahoma City company, which has a highly qualified technical team in place to develop this asset efficiently. Production from the acquired assets, net to Panhandle’s interest for May 2014, averaged approximately 825 boe per day (80% oil). There were 5 new wells, which began production in May and were on line for a partial month. In addition, the Company reported that on June 17, 2014, it increased its bank credit facility to $200 million with a current borrowing base set at $130 million. The terms and conditions of the credit facility remain materially unchanged, and the facility matures on November 30, 2018. Panhandle Oil and Gas Inc. (PHX) is engaged in the exploration for and production of natural gas and oil. Additional information on the Company can be found at www.panhandleoilandgas.com.

 

Media Contact:
Panhandle Oil and Gas Inc.
Oklahoma City, Oklahoma 73112
Tel: (405) 948-1560
Fax: (405) 948-2038 or (405) 948-1063
Email: Contact Us
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