Panoak Oil & Gas Corp.

Panoak Oil & Gas Corp. has retained Meagher Oil & Gas Properties Inc. to sell operated properties and leases in a coalbed-methane play in Oklahoma. The package includes 100% working interest (81.68% average net revenue interest) in more than 11,000 contiguous gross and net acres in Washington County. The assets include 108 operated wells with 90 producing, 16 shut in and two waiting on completion. More than 97% of net acreage is held by production. Panoak owns eight miles of pipeline and gathering system. Gross daily production is projected to be 2.2 million cubic feet equivalent per day in November. Monthly net cash flow for the period is projected to be $227,700. Net proved developed producing reserves are 4.47 billion cubic feet and 12,300 barrels of oil. Upside includes 68 proved undeveloped drilling locations targeting multiple coal intervals. Current field spacing can be infilled from 160 acres to 80. Net proved undeveloped reserves are 5.8 billion cubic feet. Proved nonproducing opportunities exist in most wellbores. The bid due date is Nov. 5. The effective date is Nov. 1. The closing date is Dec. 4. Contact Jacque Semple, 918-481-5900, ext. 221.