enercom og denver co 08-10-09

7/28/2019 Enercom OG Denver CO 08-10-09

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IPAA OGIS Florida-February 17-18, 2009

1

2008 IPAA OGIS San Francisco, CA - October 6 2008

NYSE: PHX

August 9-13, 2009


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The Oil and Gas Conference Denver, CO - August 2009

22

Forward-Looking Statements and Risk Factors This report includes forward-lookingstatements 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 orforecasts of future events. They may include estimates of oil and gas reserves, expected oil andgas production and future expenses, projections of future oil and gas prices, planned capitalexpenditures for drilling, leasehold acquisitions and seismic data, statements concerninganticipated cash flow and liquidity and Panhandles strategy and other plans and objectives forfuture operations. Although Panhandle believes the expectations reflected in these and otherforward-looking statements are reasonable, we 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 Panhandles 2008 Form 10-K filed with the Securities andExchange Commission. These Risk Factors includes the volatility of oil and gas prices;Panhandles ability to compete effectively against strong independent oil and gas companies andmajors; the availability of capital on an economic basis to fund reserve replacement costs;Panhandles ability to replace reserves and sustain production; uncertainties inherent in estimatingquantities of oil and gas reserves and projecting future rates of production and the amount andtiming of development expenditures; uncertainties in evaluating oil and gas reserves; unsuccessfulexploration and development drilling; declines in the values of our oil and gas properties resultingin write-downs; the negative impact lower oil and gas prices could have on our ability to borrow;

and drilling and operating risks.

Do not place undue reliance on these forward-looking statements, which speak only as of the dateof this release, and Panhandle undertakes no obligation to update this information. Panhandleurges you to carefully review and consider the disclosures made in this presentation andPanhandles filings with the Securities and Exchange Commission that attempt to advise interestedparties of the risks and factors that may affect Panhandles business.


3/34


Who is

Panhandle Oil and Gas?NYSE: PHX

3


4/34


44Panhandle Oil and Gas Inc.

Non-operating independent oil and gas companywith current drilling projects in the Woodford Shale,Fayetteville Shale and Western Oklahoma

Market Capitalization - $210 million

52-week range - $13.15 - $39.98

8.3 million shares outstanding

Insider ownership 13.8%

Unique and Evolving company


5/34


55UNIQUE: Operational Strategy

Use ownership of 254,600 mineral acres as base,

legacy assets

Use mineral acreage ownership to participate with a workinginterest in the drilling of a significant numberof wells

Working interest in 1,350 wells

Royalty interest in 3,300 wells

As a non-operator, Panhandle participates in drilling withoperating companies, principally large independents.

Majority of drilling is on perpetually owned fee mineral

acreage, drilling on owned fee mineral acres maximizes rate ofreturn, royalty on our acres is paid to Panhandle

Approximately 75% of oil and gas sales revenue is fromworking interests in wells


6/34


66

Fiscal Year Ended

September 30,

Revenue & Earnings 2008 2007

Revenue $69,119,121 $39,128,911

Net income $21,555,769 $6,343,464

Earnings per share $2.54 $.75

Net cash provided by operating

activities $39,924,719 $28,106,500

Capital expenditures $38,747,749 $27,785,431

Mcfe produced (33% increase) 7,722,450 5,791,407

Average Mcfe sales price $8.94 $6.47

Financial Highlights


7/34The Oil and Gas Conference Denver, CO - August 2009

77

Six Months Ended

March 31,

Revenue & Earnings 2009 2008

Revenue $20,193,717 $26,451,025

Net income (loss) ($1,819,885) $6,311,588

Earnings per share ($.22) $.74

Net cash provided by operating

activities $24,911,686 $16,357,801

Capital expenditures $30,271,588 $16,095,211

Mcfe produced (37% increase) 4,875,423 3,558,963

Average Mcfe sales price $3.91 $7.91

Financial Highlights



88

March 31, 2009

Current assets $10,330,752

Property and equipment 203,613,769

Less accumulated DD&A (101,670,052)

Net property and equipment 101,943,717

Other 1,043,800

Total assets $113,318,269

Current liabilities $5,462,860

Long-term debt 15,810,247

Deferred income taxes 24,531,750

Asset retirement obligation 1,660,512

Long-term derivative contracts 282,540

Shareholders equity 65,570,360

Total liabilities and equity $113,318,269

Financial Highlights: Condensed Balance Sheet



99PHX: 2009 Operating Strategies

Maintain operational and financial flexibility

Prudently manage capital expenditures and credit facilitydrawdowns

Continue and expand participation in unconventional plays

Continue to exploit legacy assets, leveraging mineralsownership

Maintain ability and commitment to prudently maximize

current and future drilling and development opportunities

Potentially divest of a limited number of properties innon-core areas or groups of marginal properties



1010PHX: 2009 Operating Strategies-continued

$50 million credit facility with Oklahoma banks, maturityOctober, 2011

Outstanding balance on credit facility at July 30, 2009,$11.1 million

$35 million borrowing base, as of May 2009

Would increase borrowing base, if needed

Natural Gas Swaps (all swaps tied to specific Oklahomapipeline price)

Continually evaluating hedge position

Period Volume/Month Average Pipeline Price

2009 300,000 mmbtu $3.775

2010 300,000 mmbtu $5.30


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11Trailing 12-Mo. Operating and G&A Expense

Peer Average: $2.44

PHX

$1.62$/Mcfe

Note: Trailing twelve month for periods ending 3/31/09.Source: EnerCom Incorporated.

Peer set includes: BRY, CHK, CLR, CRK, DVN, FST, GDP, GMXR, HK, NFX, PETD, PLLL, PQ, PVA, PXP, RRC, SWN, XTO.The Oil and Gas Conference Denver, CO - August 2009


12/34

123-Year Finding and Development Cost

Peer Average: $3.49

PHX

$2.50

$/Mcfe

Source: EnerCom Incorporated.



13/34

13Debt to Market Capitalization

Peer Average: 95%

PHX

9%

Note: As of 7/17/09.Source: EnerCom Incorporated.



14/34


15/34

15Trailing 12-Mo. Capital Efficiency

Peer Average: 217%

PHX

201%

Note: Trailing twelve month for periods ending 3/31/09.Source: EnerCom Incorporated.



16/34

Asset Pyramid


16

Fee

Mineral

Acreage

Resource/Shale Play

Probable andPossibleReserves

Proved Reserves

Perpetually owned 198,000 open acres,56,000 producing or leased acres

Reserves on fee mineral acres, Fayettevilleand Woodford Shales

Over 4,000 total wells, 88% natural gas

Low ratio ofPUD to total proved reserves


17/34


Operations Overview 17


18/34


1818Overview/Fiscal Year 2008 Operating Highlights

Total U.S. mineral ownership of ~ 255,000 acres

Significant ownership in the Western Oklahoma Anadarko Basin,Arkansas Fayetteville and the Southeastern Oklahoma Woodford

2008 proved reserves increased 29% to 54.1 Bcfe

Reserve replacement 257%

Growth through the drillbit

2008 finding cost - $2.64/Mcfe 89% natural gas

76% proved developed producing

2008 annual production increased 33% to 21.2 Mmcfe per day

Q3 2009 production increased to 29.1 Mmcfe per day

Superior investment economics Large inventory of undrilled locations in premier established and

developing resource plays

Participation with minerals as a working interest owner


19/34


1919PHX: Mid-Year Proved Reserve Update

Proved Reserves March 31,

2009

September 30,

2008

SEC Pricing (1)

Proved reserve volumes 53.1 Bcfe 54.1 Bcfe

Estimated future net cash flows,

10% discounted present value(before income taxes, millions of dollars) $61.9 $119.9

Normalized Pricing (2)

Proved reserve volumes 62.4 Bcfe 54.8 Bcfe

Estimated future net cash flows,

10% discounted present value(before income taxes, millions of dollars) $156.3 $133.5

1. SEC Pricing September 30, 2008 - $4.52/Mcf & $97.74/Bbl, flatSEC Pricing March 31, 2009 - $2.45/Mcf & $46.93/Bbl, flat

2. Normalized Pricing - $6.00/Mcf & 45.00/Bbl, flat


20/34

Panhandle Oil and Gas Mineral Holdings


Leasehold

20

Significant Mineral Acreage Holdings

NeA

T

0

20

40

60

80

100

120

OK NM TX ND AR

E i I t f P ti i ti ith


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Economic Impact of Participation withMineral Interest


21

Assumptions:

PHX ownership -1% W.I., 1% NRI

Typical ownership 1% W.I., 0.8125% NRI

Gross well cost - $2,900,000

Wellhead gas price 7/31/09 NYMEX Strip,adjusted for basis ($6.19/Mcf wellheadaverage over life of well)

Arkansas Fayetteville

$1.78

$1.45

24%

34%

0

5

10

15

20

25

30

35

40

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

Typical W.I. Owner PHX Typical W.I. Owner PHX

Finding Cost, $/Mcfe Rate of Return, % (BTAX)

42%Higher19% Lower


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2222PHX Quarterly Production Profile

0

5

10

15

20

25

30

35

12

.31

.05

3.31

.06

6.30

.06

9.30

.06

12

.31

.06

3.31

.07

6.30

.07

9.30

.07

12

.31

.07

3.31

.08

6.30

.08

9.30

.08

12

.31

.08

3.31

.09

6.30

.09

Mmcfeperda

y


23/34

2323PHX Areas of Focus



24/34


2424Western Oklahoma: Anadarko Basin

Anadarko Basin (Cana) horizontal Woodford

Anadarko Basin (Colony) horizontal Granite Wash

Anadarko Basin (SE Leedey) horizontal Cleveland

Anadarko

Basin


25/34


2525Anadarko Basin: Woodford Shale

~30 horizontal wells on productionin the play (as of April, 2009)

10,000 13,000 depth

~ 3,000 Mcfd typical initial month production rate

PHX generates superior returns

Drilling on our minerals, we keep royalty

4.3% average NRI in 42 sections (1,365 net acres)

9 working interest wells approved (as of 7/10/09)4 producers, 1 drilling, 1 testing, 3 scheduled

2 royalty interest wells producing

~ 330 undeveloped locations (based on 8 wells per section)

Anadarko

Basin


26/34

BLAINE

CANADIAN

CADDO

KINGFISHER

LEGEND

PHX Acreage

Reserve Study Area

Gas Producer

Drilling Well

Well Spot

LEGEND

PHX Acreage

Reserve Study Area

Gas Producer

Drilling Well

Well Spot

FEET

0 23,146

PETRA 7/28/2009 2:05:16 PM


2626Anadarko Basin: Woodford Shale


27/34

Daily net production ~ 2.9 Mmcf per day



2% average N.R.I. in 284 sections (8,000 net acres)

85 working interest wells approved (as of 7/10/09)

62 producers, 1 drilling, 2 testing, 20 scheduled

W. I.


28/34

Johnson

Pope

Conway

Cleburne

White

Van Buren

FaulknerLEGENDPHX Acreage

Gas Producer

Drilling Well

Well Spot

LEGEND

PHX Acreage

Gas Producer

Drilling Well

Well Spot FEET

0 54,752

PETRA 7/28/2009 3:10:40 PM


2828Arkansas: Fayetteville Shale


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2929

Net Reserves (Bcf) to PHXProved 3.5

Probable 19.0 *

Possible 39.0 *

~ 2,200 locations

Arkansas: Fayetteville Shale Reserves

* DeGolyer and MacNaughton, as of 9/30/08

based on 8 wells per section

Operators:

Southwestern Energy, Chesapeake, Petrohawk


30/34


3030SE Oklahoma: Woodford Shale

Daily net production ~ 8.4 Mmcf per day



10,000 acres in active counties(Coal, Hughes, Pittsburgh & Atoka)

3.9% average N.R.I. in 185 sections (6,200 net acres)

130 working interest wells approved (as of7/10/09)

109 producers, 2 drilling, 12 testing, 7 scheduled

W.I.


31/34


3131SE Oklahoma: Woodford Shale

PR AT HE R1 H-7

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MAC K CA RR 8-1 H

CA RV ER 11 -1 H

RH E A1 H-2 9

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ZE AK 1 H-3 3

S H IR LE Y1 -1 5H

T UC K ER 2-2 6 H

K IMB E RL Y1 -1 1H

MCWH ORT ER 1-3 H

C YP ER T1 -3 H

B UR TON 4H -1 7

GA TOR 13 -1 H

LS 3H -1 2L S4 H -1 2

T IP TON 2H -3 0POE 3 H-2 9

T IP TON 3 H-3 0

P RU IT T2 -3 2H

K EN T1 -6 H

SIL V A2 1-3 H

S IL VA 21 -2 H

VA UGH N8 -2 0 H

H AT RID GE 1-2 3 H

S IL V A2 2-1 H

L OFT IS A E 7H -1 5L OF TIS A E 8 H-1 5

HE LE N1 -3 0H

BU RT ON5 H-1 7

N UN N 1H -1

PA RK ER 2 -1 H

H UL L1 -1 1H

HIGH T OWER 1-9 H

MC DON A LD 1-3 4 H

OR R1 -1 1H

MC WIL LIA MS 4H -2 3MC WIL LIA MS 5H -2 3MCWIL L IA MS 3H -2 3

EL MS4 H-4EL MS2 H-4

CIT Y OF A TOK A9 -1 H

ID A 6-1 2

MA YA LL 2-2 0 H

SP RA GUE 2-1 5 H

CIT Y OF A TOK A4 -1 H

MOONE Y3 H -1 9

A BB OTT 5H -3 1AB BOT T4 H -3 1

E LL EF SON 9-2 H

C AN TR EL L1 -3 1 H

C HU RN ER 2-7

HA TR ID GE 2-1 0 H

HA T RID GE 1-1 5 H

MAY AL L 1-2 0 H

PR IC E2 -2 2H

MEL V IN 2H -2 0

P AR SON S1 -9 H

D OUGL AS 1-2 3 H

BL AC K3 -1 7H

H AR DE N3 -2 0H

WAGE MAN 1-1 1 H

D OWNE N1 -2 4H

MAY AL L3 -2 0 H

FR EE LA N D1 H-1 8

MA RV IN 3 -1 4

D UN CA N SH ORE S2 -1

S PR AGU E1 -1 0H

B OYD 1-3 4 H

HA RD EN 1-2 0 H

HA RD EN 1-2 0 H

WAL TE R2 -3 H

PA CE 2-1 0 H

WOL OH ON3 -1 9H

HA RD EN 2-2 0 H

WOL OHON 2-1 9 H

F OST ER 4H -1F OST ER 2H -1

F OS TE R3 H-1 RE BE CC A1 -1 H

H IL SE WEC K RA NC H 1-3 0 H

SH ER MAN E LL IS 6H -2 2S HE RMA N E LL IS 7H -2 2SH ER MA N EL LIS 5 H-2 2

R ED B IR D1 -3 1H

S HE RMA N EL LIS 8 H-2 2

JOH NS ON ES TA TE 8 -2 1H

OR R2 -1 1H

C RA N DE LL 14 -1 H

P OWEL L-F E DE R AL 4-2 H

S PA RT AN 11 -1 H

ST EP HA NIE 1 H -3 6

HE DGE C OCK 2H -3 1HE DGE COC K2 H-3 1

PE RR Y 2H -1 2

WIL S ON2 H-3 2WIL SON 3H -3 2 W IL SON 5 H-3 2WIL SON 4H -3 2

PE RR Y5 H-1 2

B UE 1-5 H

MCC LU RE 1-1 6 H

AD AMS 4H -4 AD AMS 5H -4 AD AMS 6 H-4

C AT TL E4 H-2 1

C AT T LE 3H -2 1

C AT TL E5 H-2 1CA TT LE 2H -2 1

HOL LOWA Y 2-1 6 H

AR LA N4 -1 5 H

SE XT ON 1-9 H

C UN NIN GH A M1-3 0 H

RE D B IR D2 -3 1H

A DA MS3 H-1 8

POWE LL -F ED ER AL 4 -3 H

IS B EL L5 -1 H

A DA MS4 H-1 8A DA MS5 H-1 8

WIL S ON2 -5 H

WIL LIA MS R A NC H1 H-1 7

FOR IS 1H -1 6

C AR R ES T AT E1 2-2 H

NE WBE RR Y1 H-1 2

B IA 1H -1 8

DOWN EN 1H -2 5

WA CC AW1 -1 5H

P ER RY 3H -1 2P ER R Y4 H-1 2

SP RA GUE 3-1 5 H

H AL L2 -3 4H X

N IC HOL S1 -2 1H

B AT T LE S1 H-2 5 C OLT ON 1-2 7

C OAL GAT E LA KE 2-2

ED DIN GS 2H -1 4ED DIN GS 3H -1 4

E DD IN GS4 H-1 4

E DD IN GS5 H-1 4

B EC CA 1-1 7 H

R EE D1 -2 1H

HA LL 4 -3 4H

FR AZ IE R1 -2 2

LE WIS 1H -3 1

R EE D2 -2 1H

BOGGS 1-1 2 H

AR LA N2 -1 5H

WA LT ER 2-5 H

AR LA N3 -1 5H

HOL L OWAY 1-1 6 HHOL LOWA Y3 -1 6H

WIL LIA M1 -3 4H

HA RD EN 4-2 0 H

RE ED ER 1-2 6 H

H UD SON 1-9 H

WHIT L OW1-2 6 H

T YS ON 1-1 6 H

MC CL UR E1 -1 7H

HON EY WEL L2 2-1 H

R ONA LD 1-1 0 H

PA LE MOON 1 -3 1H

Z EB RA 30 -1 H

T U RP IN 1-2 6 H

A BN EY 1-2 6 H

C AT TL E7 H-8

S HA KL EE 2-3 0 HS HA KL EE 3-3 0 H

C AT TL E8 H- 8 C A TT LE 6H -8

R ES H8 -1 H

C AR OL1 -1 8H

PE RR Y1 0 -1 H

R ED BIR D 1-1 H

POWE LL F ED ER AL 4-4 H

C HIA F 1 -2 9H

B EL L TOM ME MORIA L WE 1-3 5 H

CH U RC HIL L 1-2 6 H

GIB SON 1-3 0 H

F UGIT T 10 -1 H

WA GEMA N2 -1 4 H

R AMON A1 -6 H

A DA MS3 H-1 8 AD AMS 5 H-1 8AD AMS 4H -1 8

F AL CON F AR MS1 -2 0 H

WIL LA E LY 1-3 3 H

TH OMAN 1-3 1

FR EN CH 1 -6 H

A ND ER SON 1 -3 3

MAY ER D EL L1 H-3 3

BON N IE 1H -2 4

D OWNE N1 -2 6H

MOWD Y1 -2 7H

MOR GA N1 -6 H

HA LL 5-3 4 H

D OU BL E 5 RA NC H1 -6 H

P HIL L IP S 1-1 6 H

E U GEN E1 -2 H

JE N NIF E R1 -1 6H

B LE VIN S 1-1 H

J AS ON1 -2 0H

L UN A3 -1 8 H

P OE4 H-2 9

POE 5H -2 9POE 6H -2 9

P OE7 H -2 9

F OST E R5 H-1 FOS T ER 7H -1

FOS TE R6 H-1FOS TE R8 H-1

L UN A4 -1 8H

LU NA 2 -1 8H

MC CL UN G8-1 5 H

B RE NT 1-2 3 H

A LE XA ND ER 12 -1 H

HIL S EWE CK R AN CH 1-3 1 H

B ROWN E 1-2 3 H

S OONE R2 3-1 H

WOOD 1-2 2 H

DOU BL E 5 RA N CH 2-1 1 H

A YE RS 2-7 H

S UN DOWN R A NC H1 -1 8H

C HU BL EE 12 -1 H

WIT H ER SP OON1 H-1 9

P OWEL L1 H-2 6

WAN DA 1-2 8 H

D OUB LE 5 R AN CH WE S T1 -1 2H

J IMMY 1 -6 H

WIL L IA MS1 -7 H

SH ER RY 1-1 3 H

H IC KOR Y HIL L S1 -2 1H

AY ER S1 -7 H

L EOP A RD 24 -1 H

S UMME R S2 -3 3H

PR AT T4 -1 7 H

PR AT T3 -1 7H

PR AT T2 -1 7H

OL E N1 H-1

S UMME R S1 -4 H

E DD IN GS1 -2 9H

ST OVE R2 3 2H

D UN N1 -1 9 H

J OE Y1 -1 H

MA RT IN 1H -3 5

WIGGI N S2 -1 0

WIL S ON4 -1 4HWIL SON 3-1 4 H

COR ON AD O2-2 2 H

POE 1-3 2 HD & L C A TT LE 1-3 2 H

CA SE Y1 H-3

PA SQU AL I2 -3 0 H

WA RD 1-3 5

RE ED 2-1 6 H

NIC H OLS 2-1 6 H

R EE D1 -1 6H

LA UR A1 H-5

P AS QUA LI5 -3 0 H

PA RK ER 1 -3 2H

COS TE LL O1H -3 0

WA LL AB EE 25 -1 H

GL EE SE 1-2 8 H

POWE LL 1 -5 H

H IL SE WE CK R AN CH 1-9 H

WAL KU P1 H-3 3

A LIC E H AY HU RS T1 -2

PA SQU A LI7 -3 0 H

WEL CH 1-1 7

BU LL MOU NT AIN 1 H-1 1

L LN 1-2 6 H

K IN G1 -2 4H

LIGON 2 -8 H

WAL LA CE 6 H-9

R OSA 1H -5

T OML IN SON 1H -2 3

BE Y1 H -1 2

P AS QUA LI3 -3 0 H

PA SQU AL I4 -3 0H

C AT T LE D & L 1-2 4 H

C A RR IS 1-1 4 H1 1

IGOU 1 -2 9H

P AR KE R2 -7 H

P AS QUA LI8 -3 0 H

MOWD Y2 -2 1H

PA SQU AL I6 -3 0H

BIL L Y4 -5

DON 1H -1 3

GU IN N2 -5 HD OUB LE 5 R A NC H1 -5 H G U IN N3 -5 H

H AMP TON R ODN EY 3 -5

COA L1 H-1 6

J AC KS ON1 -8 H

C OAL 2 H-1 6S HA RON 2H -1 5

MOR GAN 1-7 H

WOODR U FF 1-3 6

ME L AN IE 1-1 4 H

A SH MORE 1-2 4 H

WHIT E 1 -3 4H

EMMA L OU 1-3 2 H

EC HE LL E1 -1 5 H

LW-J T R A NC H1 -8 H

ST IP E 1-1 6 H

SH UL LE R1 -2 3H

COB RA 1 2-1 H

KIN G2 -2 4 HCA TT LE D & L 2-2 4 H

CA RR 1-1 H

WOB BE GONG8 -1 H

ST EIN S IC K1 -1 4H

R EE DE R2 -1 4H

GE CK O2 2-1 H

IGOU 1-1 4 H

P AR R OT1 8-1 H

S COT TY 5-5

MEL V IN 3H -2 0ME LV IN 4H -2 0ME LV IN 5 H-2 0ME LV IN 6H -2 0

L ES LI1 -2 4 H

DOU BL E 5 RA NC H1 -7 H

WHIT B Y 1-1 5

S U MMER S8 H-2 7S UMME RS 7H -2 7

S UMME RS 9H -2 7SU MMER S1 0H -2 7S UMME R S1 1H -2 7

H OLT 1-3 3 H

HOL DE R 1-3 3 H

HA MPT ON GER AL D2 -5

R EE DE R1 -1 4H

PA ND A5 -1 H

MCK A Y4 -1 H

P AS QUA LI8 -3 0 H

CH EY EN NE 2-1

SU MMER S 3-3 3 H

MEL VIN 7 H-2 0

LIZ A RD 19 -1 H

BA KE R1 -3 3 H

TIP T ON 1-3 3 H

BE LL ET TIN I3 -3 2

J ORD A N1 -2 4H

ROWE LL 1-1 H

MOR RIS 2 H-1 9

WE SL EY A DA MS1 -3 6H

DOU BL E 5 R AN CH 7-3 1 H

B ONN IE 2 H-2 4

DOU BL E 5 R AN CH 5-3 1 HD OUB LE 5 R A NC H8 -3 1H

D OUB LE 5 R A NC H6 -3 1HDOU B LE 5 R AN CH 3-3 1 H

WOMBA T1 -1 H

LIGON 2 -8 H

T HOMA S1 H-7 W

D OUB LE 5 R AN CH 4-3 1 H

C OA LGA TE L AK E4 -2

COA LGA T E LA KE 6-2

BA TT LE S3 H-2 5

P AC E1 -8 H

A BN E Y1 -2 5H

P EA RS ON2 -2 5H

KIN G2 -2 5 H

HR 1-3 1 H

BOOZ ER 1-2 0 H

HOWA RD 1-1 9 H

LEGEND

PHX Acreage

Reserve Study Area

Gas Producer

Drilling Well

Well Spot

LEGEND

PHX Acreage

Reserve Study Area

Gas Producer

Drilling Well

Well Spot

FEET

0 35,773

PETRA 7/29/2009 2:27:57 PM


32/34


3232

* DeGolyer and MacNaughton, as of 9/30/08

based on 8 wells per section

Operators:

Newfield, Continental, Devon, BP, XTO

SE Oklahoma: Woodford Shale Reserves

Net Reserves (Bcf) to PHXProved 15

Probable 67.0 *

Possible 36.0 *

~ 1,200 locations


33/34


3333The Panhandle Oil and Gas Advantage

Strong financial metrics < 10% debt to market capitalization

Broadly diversified perpetual mineral holdings

Total US mineral ownership of ~ 255,000 acres

Large drilling inventory in multiple resource plays

Over 3,000 locations identified

Substantial advantage in capital efficiency due to mineralownership

Participate with mineral interest as a working interest owner or;

Retain a significant royalty ownership in properties with noadditional capital investment


34/34

enercom og denver co 08-10-09

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