OKLAHOMA CITY, Nov. 8, 2017 /PRNewswire/ -- PANHANDLE OIL
AND GAS INC. (NYSE: PHX), "the Company," a non-operating
independent oil and natural gas company with reserves and
production primarily in the Mid-Continent region and the Eagle Ford
Shale, today announced estimated total proved reserve volumes for
the Company's fiscal year ended Sept. 30,
2017. Additional information on the Company can be found at
www.panhandleoilandgas.com.
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.
"Panhandle's total 3P (proved, probable and possible) reserves
decreased to 641.9 Bcfe at fiscal year-end 2017 from 670.1 at
fiscal year-end 2016. This reduction primarily resulted from lower
net revenue interest in a group of probable and possible locations
located in the STACK and SCOOP plays and extensions that was leased
out during 2017. In these leased areas, the interest was changed
from a working interest to a royalty interest based on the lease
terms. The Company chose to lease out the mineral acreage
associated with these locations because the value received in the
up-front cash bonuses and future royalty income was projected to
exceed the value of participating with a working interest."
Definition of Press Release Terms:
Mcf: thousand cubic feet of
natural gas
Bcfe: billion cubic feet of natural gas equivalent
Mcfe: thousand cubic feet of natural gas equivalent (Crude oil and
NGL are converted to a thousand cubic feet of natural gas
equivalent by using the ratio of one barrel to six Mcf of natural
gas.)
NGL: natural gas liquids
Proved Reserves –
SEC Flat Pricing
|
|
|
|
|
Proved Reserves SEC
Pricing
|
|
|
|
Sept. 30,
2017
|
|
|
Sept. 30,
2016
|
|
|
Proved Developed
Reserves:
|
|
|
|
|
|
|
|
|
Barrels of
NGL
|
|
1,768,425
|
|
|
|
1,095,256
|
|
|
Barrels of
Oil
|
|
2,201,528
|
|
|
|
1,980,519
|
|
|
Mcf of Gas
|
|
87,861,043
|
|
|
|
62,929,047
|
|
|
Mcfe
|
|
111,680,761
|
|
|
|
81,383,697
|
|
|
Proved Undeveloped
Reserves:
|
|
|
|
|
|
|
|
|
Barrels of
NGL
|
|
616,274
|
|
|
|
527,447
|
|
|
Barrels of
Oil
|
|
3,308,139
|
|
|
|
3,445,571
|
|
|
Mcf of Gas
|
|
33,334,077
|
|
|
|
18,796,551
|
|
|
Mcfe
|
|
56,880,555
|
|
|
|
42,634,659
|
|
|
Total Proved
Reserves:
|
|
|
|
|
|
|
|
|
Barrels of
NGL
|
|
2,384,699
|
|
|
|
1,622,703
|
|
|
Barrels of
Oil
|
|
5,509,667
|
|
|
|
5,426,090
|
|
|
Mcf of Gas
|
|
121,195,120
|
|
|
|
81,725,598
|
|
|
Mcfe
|
|
168,561,316
|
|
|
|
124,018,356
|
|
|
|
|
|
|
|
|
|
|
|
10% Discounted
Estimated Future
|
|
|
|
|
|
|
|
|
Net Cash Flows
(before income taxes):
|
|
|
|
|
|
|
|
|
Proved
Developed
|
$
|
112,276,166
|
|
|
$
|
55,586,606
|
|
|
Proved
Undeveloped
|
|
13,746,585
|
|
|
|
(7,696,741)
|
|
|
Total
|
$
|
126,022,751
|
|
|
$
|
47,889,865
|
|
|
SEC
Pricing
|
|
|
|
|
|
|
|
|
Oil/Barrel
|
$
|
46.31
|
|
|
$
|
36.77
|
|
|
Gas/Mcf
|
$
|
2.81
|
|
|
$
|
1.97
|
|
|
NGL/Barrel
|
$
|
17.55
|
|
|
$
|
12.22
|
|
|
TABLE
1
|
Proved Reserves –
Projected Future Pricing (1)
|
|
|
|
10% Discounted
Estimated Future
|
|
Proved
Reserves
|
|
|
Net Cash Flows
(before income taxes)
|
|
Sept. 30,
2017
|
|
|
Proved
Developed
|
|
$
|
146,699,256
|
|
|
Proved
Undeveloped
|
|
|
45,395,171
|
|
|
Total
|
|
$
|
192,094,427
|
|
|
(1) Projected
future pricing as of Sept. 30, 2017, basis adjusted to Company
wellhead price
|
|
TABLE
2
|
Probable and
Possible Reserves
|
DeGolyer and
MacNaughton prepared estimates of the Company's probable and
possible undeveloped reserves utilizing projected future pricing,
basis adjusted to Company wellhead price.
|
|
|
|
Estimated Net
Probable and Possible Reserves
|
|
|
Projected Future
Pricing (1)
|
|
|
|
Sept. 30,
2017
|
|
|
Probable
Reserves:
|
|
|
|
|
Barrels of
NGL
|
|
3,098,935
|
|
|
Barrels of
Oil
|
|
2,404,125
|
|
|
Mcf of Gas
|
|
235,537,959
|
|
|
Mcfe (1)
|
|
268,556,319
|
|
|
10% Discounted
Estimated Future
|
|
|
|
|
Net Cash Flows
(before income taxes)
|
$
|
134,864,081
|
|
|
|
|
|
|
|
Possible
Reserves:
|
|
|
|
|
Barrels of
NGL
|
|
2,012,497
|
|
|
Barrels of
Oil
|
|
736,889
|
|
|
Mcf of Gas
|
|
188,252,876
|
|
|
Mcfe (1)
|
|
204,749,192
|
|
|
10% Discounted
Estimated Future
|
|
|
|
|
Net Cash Flows
(before income taxes)
|
$
|
64,004,835
|
|
|
(1) Projected
Future Pricing as of Sept. 30, 2017, basis adjusted to Company
wellhead price
|
Forward-Looking Statements and Risk Factors
– This report includes "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements include current expectations or forecasts of future
events. They may include estimates of oil and gas reserves,
expected oil and gas production and future expenses, projections of
future oil and gas prices, planned capital expenditures for
drilling, leasehold acquisitions and seismic data, statements
concerning anticipated cash flow and liquidity and Panhandle's
strategy and other plans and objectives for future operations.
Although Panhandle believes the expectations reflected in these and
other forward-looking statements are reasonable, the Company can
give no assurance they will prove to be correct. They can be
affected by inaccurate assumptions or by known or unknown risks and
uncertainties. Factors that could cause actual results to differ
materially from expected results are described under "Risk Factors"
in Part 1, Item 1 of Panhandle's 2016 Form 10-K filed with the
Securities and Exchange Commission. These "Risk Factors" include
the worldwide economic recession's continuing negative effects on
the natural gas business; Panhandle's hedging activities may reduce
the realized prices received for natural gas sales; the volatility
of oil and gas prices; Panhandle's ability to compete effectively
against strong independent oil and gas companies and majors; the
availability of capital on an economic basis to fund reserve
replacement costs; Panhandle's ability to replace reserves and
sustain production; uncertainties inherent in estimating quantities
of oil and gas reserves and projecting future rates of production
and the amount and timing of development expenditures;
uncertainties in evaluating oil and gas reserves; unsuccessful
exploration and development drilling; decreases in the values of
Panhandle's oil and gas properties resulting in write-downs; the
negative impact lower oil and gas prices could have on the
Company's ability to borrow; drilling and operating risks; and
Panhandle's inability to control activities on its properties as
the Company is a non-operator.
Do not place undue reliance on these forward-looking statements,
which speak only as of the date of this release, and Panhandle
undertakes no obligation to update this information. Panhandle
urges you to carefully review and consider the disclosures made in
this presentation and Panhandle's filings with the Securities and
Exchange Commission that attempt to advise interested parties of
the risks and factors that may affect Panhandle's business.
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SOURCE PANHANDLE OIL AND GAS INC.