Panhandle Oil and Gas acquires North Dakota, Oklahoma properties

By Patrick C. Miller | August 27, 2018

Panhandle Oil and Gas Inc. of Oklahoma City reports that it has completed $9 million purchase of mineral acreage and producing oil and gas properties in North Dakota.

Located primarily in the Bakken and Three Forks shale plays, eight of the 20 previously uncompleted wells acquired by Panhandle are now producing. The company also purchased an additional 77 acres for $790,000 located in the core of Oklahoma’s STACK/Cana play in Blaine County. Closing is expected before Sept. 1.

According to Panhandle, the new Oklahoma acreage is located in a prolific area of the STACK Meramec formation where recent wells have peak 30-day production rates of approximately 15 to 25 million cubic feet per day. Other parts of the acreage are in the core of the largely undeveloped Cana Woodford play. There’s a single horizontal Woodford producing well in one of the units.

Paul Blanchard, Panhandle president and CEO, said, the transactions are the result of the company carrying out the mineral strategy it outlined last month. The goal is to maximize long-term shareholder value by optimizing Panhandle’s allocation of capital and minimizing risks, he said.

"This strategy will be the framework from which all of Panhandle's capital allocation decisions are made,” he said. “Panhandle's primary goal is to use its existing assets and financial flexibility to maximize value creation on a per share basis over the long term while minimizing risks."

Panhandle Oil and Gas engages in the acquisition, management and development of non-operated oil and gas properties on its mineral and leasehold acreage. Its principal properties are located in Oklahoma, Arkansas, Texas, New Mexico and North Dakota.