Panhandle Oil and Gas Inc. (Panhandle) is engaged in the acquisition, management and development of oil and natural gas properties, including wells located on its mineral and leasehold acreage. Panhandle’s mineral and leasehold properties are located primarily in Arkansas, Kansas, Oklahoma, New Mexico and Texas, with properties also located in seven other states. Majority of its oil and natural gas production is from wells located in Oklahoma. Approximately over 80% of Panhandle’s revenues are derived from the production and sale of oil and natural gas. Exploration and development of its oil and natural gas properties are conducted in association with operating oil and natural gas companies, primarily independent companies. It does not operate any of its oil and natural gas properties, but has been an active working interest participant for many years in wells drilled on its mineral properties and on third-party drilling prospects.