Panhandle Oil and Gas Inc.

Panhandle Oil & Gas Inc. retained Meagher Energy Advisors to sell Delaware Basin minerals in Eddy and Lea counties, N.M.

Asset Highlights:

• Assets offer an attractive opportunity to acquire mineral interests in the most active and economic basin in the U.S.
• More than 200 horizontal rigs currently running in the Delaware Basin
• Operators currently testing equivalent spacing up to 32 wells per section
• Operators include: Concho, Mewbourne and Santo
• About 207 net mineral acres
  • 160 net acres in Lea County, leased at 1/4 royalty
    • One Wolfcamp well is waiting on completion, one active Wolfcamp permit
    • Additional development on Panhandle’s Lea County lands is expected to result in 12 new Wolfcamp and Bone Spring completions through 2019
    • EURs expected to average 456 MBO and 1.3 Bcf per well, assuming one-mile laterals
    • Cash flow poised to rapidly increase with substantial near-term development in Section 15-T25S-R34E
  • 47 net acres in Eddy County, leased at 1/4 royalty
    • Currently, six rigs are drilling around the Eddy County properties
    • Three producing wells (two horizontal and one vertical)
    • Active Wolfcamp development in adjacent sections with initial 30-day production rates of over 2,000 bbl/d of oil
    • Matador announces IP for first two Second Bone Spring wells 2,056 boe/d and 1,845 boe/d
    • Additional development on Panhandle’s Eddy County lands is expected to result in 32 new Wolfcamp and Bone Spring completions through 2019

Bids are due July 6. The transaction is expected to close Aug. 6 with an effective date of July 1.

For information visit meagheradvisors.com or contact Jacque Semple, project manager with Meagher, at 918-481-5900 ext. 221 or jsemple@meagheradvisors.com.