Oklahoma City-based Panhandle Oil and Gas Inc. reported a third quarter net loss of $787,000, or a loss of 5 cents per share, on Monday, according to a company press release.
The oil and gas company reported a net loss of $729,000, or a loss of 4 cents per share, for the same quarter a year ago.
Panhandle posted total revenue of $9.86 million in the third quarter, down 16 percent from a year ago.
“We have been able to fund our operations, continue to pay a dividend and reduce debt $15.8 million this fiscal year,” said Michael Coffman, Chief Executive Officer. “Additional monetization of certain assets continues, and we will analyze and exploit appropriate opportunities that fit with our operating strategies.”
Quarterly oil production fell 19 percent to 88,732 barrels, while natural gas production dropped 12 percent compared to a year ago. The oil and gas company had nearly $805,000 in capital expenditures, most of which occurred in Oklahoma’s STACK and SCOOP areas.
Third quarter leasing activity included 792 acres in the STACK play, yielding nearly $2.9 million, and 706 acres in the SCOOP play, yielding almost $1.3 million.
“Leasing activity during the (third) quarter resulted in proceeds of $4.3 million,” said Paul Blanchard, Senior Vice President and Chief Operating Officer. “We sold a non-strategic group of assets for $3.9 million. The operator of our Cochran County, Texas, mineral block has scheduled drilling on our acreage to begin in the fourth quarter of 2016. A well on our Eagle Ford acreage was completed with improved completion techniques, which has yielded a significant increase in early production as compared to previous wells.”
Panhandle is also participating in eight wells in the southeastern Oklahoma Woodford Shale in Coal County. The wells will be operated by another company with successful operations in the field. Panhandle will have a 20% working interest and an average net revenue interest of 27.4% in the wells. The wells are projected to commence drilling in mid-August 2016 and to begin producing late in 2016 or early 2017.