Panhandle Oil and Gas reported that it has entered into a definitive agreement to acquire certain mineral acreage and producing oil and gas properties from a private seller for total consideration of $9,000,000 cash. The acquisition will be funded utilising the company’s bank credit facility, which was reaffirmed on July 2, 2018, at $80 million with approximately $40 million in current availability. The company has paid down approximately $12 million of debt since the beginning of fiscal 2018.

Paul Blanchard, President and CEO, said: “This acquisition is consistent with our stated intent to re-enter the acquisition market in a measured way, focusing on relatively small mineral transactions. In fact, the company also closed last month on a $940,000 acquisition of 54 net mineral acres and producing oil and gas properties in the SCOOP play in Grady and Stephens Counties, Okla., with undeveloped locations identified in both the Woodford and Springer Shales. These acquisitions are perfect examples of the Company’s focused mineral strategy which is outlined below.”

Acquisition Overview
–  3,126 net mineral acres in the core of the Bakken/Three Forks Play in Williams, McKenzie, Dunn and Divide
Counties, N.D
–  Royalty interest in 94 Bakken and Three Forks producing wells with current net production of 53 Boe per
day
– Royalty interest in 20 Bakken and Three Forks drilled uncompleted wells
– Royalty interest in 194 Bakken and Three Forks undeveloped locations at current spacing
– Primary operators include Continental Resources, Crescent Point, Hess, Oasis, Statoil and Whiting
– Production and reserves are approximately 66% oil, 17% NGL and 17% gas
– Meaningful opportunity for improved well performance from enhanced completion designs
– 802 net mineral acres in Atoka, Beckham and Creek Counties, Okla
– 389 net mineral acres in Crockett, Gaines, Grayson, Reeves and Ward Counties, Texas
– 200 net mineral acres in Wyoming and Colorado