<PAGE> 1
SCHEDULE 14A
(RULE 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14a INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE SECURITIES
EXCHANGE ACT OF 1934 (AMENDMENT NO. )
Filed by the Registrant [ ]
Filed by a Party other than the Registrant [ ]
Check the appropriate box:
<TABLE>
<S> <C>
[ ] Preliminary Proxy Statement [ ] Confidential, for Use of the Commission
Only (as permitted by Rule 14a-6(e)(2))
[ ] Definitive Proxy Statement
[X] Definitive Additional Materials
[ ] Soliciting Material Pursuant to Section 240.14a-11(c) or Section 240.14a-2.
</TABLE>
Panhandle Royalty Company
- --------------------------------------------------------------------------------
(Name of Registrant as Specified In Its Charter)
- --------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than Registrant)
Payment of Filing Fee (Check the appropriate box):
[X] No fee required.
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-12.
(1) Title of each class of securities to which transaction applies:
------------------------------------------------------------------------
(2) Aggregate number of securities to which transaction applies:
------------------------------------------------------------------------
(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the
filing fee is calculated and state how it was determined):
------------------------------------------------------------------------
(4) Proposed maximum aggregate value of transaction:
------------------------------------------------------------------------
(5) Total fee paid:
------------------------------------------------------------------------
[ ] Fee paid previously with preliminary materials.
[ ] Check box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number,
or the Form or Schedule and the date of its filing.
(1) Amount Previously Paid:
------------------------------------------------------------------------
(2) Form, Schedule or Registration Statement No.:
------------------------------------------------------------------------
(3) Filing Party:
------------------------------------------------------------------------
(4) Date Filed:
------------------------------------------------------------------------
<PAGE> 2
The following additional soliciting material is filed by Panhandle Royalty
Company ("Panhandle") pursuant to Rule 14a-6 under the Securities Exchange Act
of 1934, as amended. Such material consists of a series of slides presented to
shareholders of Panhandle at informational meetings relating the proposals to be
acted upon by the shareholders at a Special Meeting of Shareholders scheduled
for May 7, 1999 (the "Special Meeting") as described in Panhandle's Preliminary
Schedule 14A and Amendment No. 1 thereto previously filed with the Securities
and Exchange Commission.
SLIDE 1. DESCRIPTION OF IMAGE MATERIAL:
Map of United States with States highlighted in which Panhandle
owns minerals. This page contains a map of the United States
showing that the Company owns minerals and leases in the following
states: Alabama, Arkansas, Colorado, Idaho, Illinois, Indiana,
Kansas, Louisiana, Montana, Nebraska, North Dakota, New Mexico,
Oklahoma, Tennessee and Texas.
SLIDE 2. DESCRIPTION OF IMAGE MATERIAL:
ACRES OF MINERAL INTEREST
Alabama - 5
Arkansas - 5,890
Colorado - 8,176
Idaho - 30
Illinois - 1,018
Indiana - 27
Kansas - 620
Montana - 422
Nebraska - 439
North Dakota - 292
New Mexico - 53,324
Oklahoma - 85,280
Tennessee - 1,543
Texas - 22,775
TOTAL MINERAL ACREAGE
Owned (9/30/98)
179,841
TOTAL LEASEHOLD ACRES
(9/30/98)
6,033 (LA. OK. TX)
<PAGE> 3
SLIDE 3. DESCRIPTION OF IMAGE MATERIAL:
PANHANDLE ROYALTY COMPANY
FINANCIAL DATA SHEET SUMMARY
<TABLE>
<CAPTION>
FISCAL FISCAL FISCAL
1998 1993 1988
------------- ------------- -------------
<S> <C> <C> <C>
Revenue $ 5,440,182 $ 3,175,360 $ 2,608,573
Net Income $ 1,314,835 $ 722,083 $ 938,971
Income/Share $ 1.92 $ 1.06 $ 1.40
Cash Flow $ 3,458,521 $ 1,809,765 $ 1,323,031
G & A $ 1,099,636 $ 712,120 $ 486,191
Total Expenses $ 3,983,347 $ 2,432,277 $ 2,120,555
Capital Exp. (E&P) $ 3,395,945 $ 1,593,371 $ 658,641
Dividends $ 611,794 $ 286,356 $ 285,136
Total Assets $ 13,019,312 $ 6,858,531 $ 7,388,262
Shareholders Equity $ 10,804,243 $ 5,730,143 $ 5,656,891
Debt $ 0 $ 0 $ 0
Stock Price $ 26.25 $ 13.75 $ 11.00
(Fiscal Year End)
</TABLE>
SLIDE 4. DESCRIPTION OF IMAGE MATERIAL:
PANHANDLE ROYALTY COMPANY
OPERATING DATA SHEET SUMMARY
<TABLE>
<CAPTION>
Fiscal Fiscal Fiscal
1998 1993 1988
------------- ------------- -------------
<S> <C> <C> <C>
Net Oil Production (bbls) 103,989 43,502 12,936
Net Gas Production (MCF) 1,710,264 1,188,886 865,156
Proved Reserves
Oil (bbls) 777,087 227,342 165,601
Gas (MCF) 11,661,320 7,300,317 7,049,400
BOE Equivalent 2,720,620 1,449,062 1,340,501
Undiscounted Value (M$) $ 23,125 $ 15,426 $ 23,253
10% Discounted Value (M$) $ 15,398 $ 10,348 $ 15,464
GROSS WELLS COMPLETED 121 68
Unavailable 13 8
Gas 84 49
Dry 24 11
GROSS PRODUCING WELLS 1,462 885 647
NET MINERAL ACRES OWNED 179,841 121,928 2,958
Net Acres Leased 6,033 1,164 4,975
(From Others)
</TABLE>
<PAGE> 4
SLIDE 5: DESCRIPTION OF IMAGE MATERIAL:
TOTAL REVENUES TOTAL NET INCOME
<TABLE>
<CAPTION>
FISCAL YEAR REVENUES NET INCOME
<S> <C> <C>
1980 $ 1,505,793 $ 709,792
1981 $ 2,688,423 $ 1,181,000
1982 $ 4,399,829 $ 1,383,246
1983 $ 4,460,362 $ 1,463,661
1984 $ 4,177,358 $ 1,118,959
1985 $ 3,928,123 $ 1,184,568
1986 $ 3,135,395 $ 484,610
1987 $ 2,789,870 $ 508,314
1988 $ 2,608,573 $ 938,971
1989 $ 2,465,667 $ 402,590
1990 $ 2,830,321 $ 517,607
1991 $ 2,528,931 $ 312,014
1992 $ 2,620,869 $ 564,565
1993 $ 3,175,360 $ 722,083
1994 $ 3,889,663 $ 1,021,194
1995 $ 3,218,439 $ 574,029
1996 $ 6,016,168 $ 2,020,819
1997 $ 7,016,478 $ 2,298,842
1998 $ 5,440,182 $ 1,314,835
</TABLE>
<PAGE> 5
SLIDE 6: DESCRIPTION OF IMAGE MATERIAL:
TOTAL ASSETS AND SHAREHOLDERS EQUITY
<TABLE>
<CAPTION>
FISCAL YEAR ASSETS SHAREHOLDERS
<S> <C> <C>
1980 $ 1,889,643 $ 1,321,705
1981 $ 3,536,191 $ 2,170,427
1982 $ 7,938,235 $ 3,044,295
1983 $ 7,652,283 $ 3,945,226
1984 $ 6,949,360 $ 4,347,973
1985 $ 8,110,602 $ 4,389,514
1986 $ 7,010,055 $ 4,290,500
1987 $ 6,864,647 $ 4,554,679
1988 $ 7,388,262 $ 5,656,891
1989 $ 7,291,641 $ 5,657,107
1990 $ 7,256,468 $ 5,646,878
1991 $ 6,628,182 $ 5,347,238
1992 $ 6,550,751 $ 5,370,919
1993 $ 6,858,531 $ 5,730,143
1994 $ 7,463,282 $ 6,438,253
1995 $ 7,757,385 $ 6,634,876
1996 $ 10,526,745 $ 8,214,966
1997 $ 12,097,190 $ 10,032,213
1998 $ 13,019,312 $ 10,804,243
</TABLE>
<PAGE> 6
SLIDE 7: DESCRIPTION OF IMAGE MATERIAL:
STOCK PRICE AT SEPTEMBER 30
<TABLE>
<CAPTION>
YEAR PRICE
<S> <C>
1980 $ 4.20
1981 $ 12.00
1982 $ 12.00
1983 $ 16.00
1984 $ 14.00
1985 $ 15.00
1986 $ 12.00
1987 $ 11.00
1988 $ 10.50
1989 $ 10.50
1990 $ 12.00
1991 $ 11.50
1992 $ 11.00
1993 $ 13.00
1994 $ 15.50
1995 $ 17.00
1996 $ 21.00
1997 $ 29.75
1998 $ 26.25
</TABLE>
<PAGE> 7
SLIDE 8: DESCRIPTION OF IMAGE MATERIAL:
DIVIDENDS PAID PER SHARE
<TABLE>
<CAPTION>
YEAR DIVIDEND
<S> <C>
1980 $.35
1981 $.47
1982 $.72
1983 $.80
1984 $.80
1985 $.80
1986 $.80
1987 $.40
1988 $.43
1989 $.60
1990 $.80
1991 $.80
1992 $.70
1993 $.43
1994 $.53
1995 $.60
1996 $.63
1997 $.80
1998 $.90
</TABLE>
<PAGE> 8
SLIDE 9: DESCRIPTION OF IMAGE MATERIAL:
TOTAL GROSS PRODUCING WELLS
<TABLE>
<CAPTION>
YEAR WELLS
<S> <C>
1980 192
1981 231
1982 289
1983 357
1984 391
1985 478
1986 550
1987 597
1988 647
1989 671
1990 688
1991 713
1992 837
1993 885
1994 910
1995 952
1996 1,124
1997 1,356
1998 1,462
</TABLE>
<PAGE> 9
SLIDE 10: DESCRIPTION OF IMAGE MATERIAL:
NET GAS PRODUCTION/MCF
<TABLE>
<CAPTION>
YEAR MCF
<S> <C>
1980 342,050
1981 587,247
1982 859,388
1983 831,106
1984 865,156
1985 857,327
1986 890,932
1987 1,117,763
1988 1,074,386
1989 1,110,865
1990 1,176,116
1991 1,141,134
1992 1,267,289
1993 1,188,886
1994 1,339,545
1995 1,203,623
1996 1,551,147
1997 1,600,247
1998 1,710,264
</TABLE>
<PAGE> 10
SLIDE 11: DESCRIPTION OF IMAGE MATERIAL
NET OIL PRODUCTION/BBLS
<TABLE>
<CAPTION>
YEAR OIL
<S> <C>
1980 7,261
1981 10,805
1982 11,207
1983 10,024
1984 12,936
1985 25,301
1986 58,574
1987 43,565
1988 45,736
1989 34,541
1990 35,088
1991 28,875
1992 32,676
1993 43,502
1994 77,720
1995 82,676
1996 145,301
1997 147,734
1998 103,989
</TABLE>
<PAGE> 11
SLIDE 12: DESCRIPTION OF IMAGE MATERIAL:
TOTAL PROVED RESERVES
<TABLE>
<CAPTION>
YEAR OIL/BBLS GAS/MCF
<S> <C> <C>
1980 44,801 2,929,010
1981 66,343 4,587,700
1982 58,819 5,293,500
1983 69,626 6,986,900
1984 107,873 6,739,100
1985 208,407 7,273,500
1986 218,914 7,187,600
1987 190,215 7,047,600
1988 165,601 7,049,400
1989 120,000 6,467,700
1990 152,141 6,630,341
1991 138,103 6,165,791
1992 183,968 7,068,028
1993 227,342 7,300,317
1994 251,246 7,442,524
1995 464,916 9,189,113
1996 938,795 9,839,061
1997 903,808 11,267,102
1998 777,087 11,661,320
</TABLE>
<PAGE> 12
SLIDE 13: DESCRIPTION OF IMAGE MATERIAL:
ESTIMATED FUTURE NET CASH FLOWS FROM PROVED OIL & GAS RESERVES
<TABLE>
<CAPTION>
YEAR UNDISCOUNTED 10% DISCOUNTED
<S> <C> <C>
1980 $ 6,107,185 $ 4,296,015
1981 $17,568,811 $ 12,076,800
1982 $20,444,253 $ 14,532,901
1983 $24,432,200 $ 16,958,700
1984 $23,253,000 $ 15,464,000
1985 $22,677,500 $ 15,469,400
1986 $15,240,200 $ 10,241,800
1987 $11,200,700 $ 7,795,500
1988 $10,908,200 $ 7,667,700
1989 $10,168,110 $ 7,248,186
1990 $12,853,590 $ 9,264,154
1991 $10,029,400 $ 7,108,521
1992 $14,060,880 $ 9,570,843
1993 $15,425,940 $ 10,348,460
1994 $12,778,920 $ 8,690,835
1995 $17,497,815 $ 11,926,091
1996 $33,530,190 $ 23,155,524
1997 $36,374,530 $ 24,321,470
1998 $23,125,470 $ 15,398,209
</TABLE>
<PAGE> 13
SLIDE 14: DESCRIPTION OF IMAGE MATERIAL:
CAPITAL EXPENDITURES FOR OIL & GAS EXPLORATION & PRODUCTION
COSTS & PROPERTY ACQUISITION COSTS
<TABLE>
<CAPTION>
YEAR COST
<S> <C>
1980 $ 510,925
1981 $ 2,198,536
1982 $ 4,987,457
1983 $ 1,097,477
1984 $ 1,302,394
1985 $ 2,472,433
1986 $ 638,598
1987 $ 750,690
1988 $ 1,474,922
1989 $ 806,626
1990 $ 688,722
1991 $ 740,596
1992 $ 1,256,020
1993 $ 1,593,371
1994 $ 1,280,987
1995 $ 1,703,114
1996 $ 4,066,408
1997 $ 2,868,521
1998 $ 3,345,945
</TABLE>
SLIDE 15: DESCRIPTION OF IMAGE MATERIAL:
ESTIMATED RETURN ON INVESTMENT FOR WELLS COMPLETED IN THE YEAR
<TABLE>
<CAPTION>
YEAR RETURN
<S> <C>
1992 4.24%
1993 5.56%
1994 3.39%
1995 3.81%
1996 5.45%
1997 4.21%
1998 1.33%
</TABLE>
<PAGE> 14
SLIDE 16: DESCRIPTION OF IMAGE MATERIAL:
FINDING COSTS PER BARREL OF OIL FOR WELLS COMPLETED IN THE YEAR
<TABLE>
<CAPTION>
PRC
YEAR COST/BBL
<S> <C>
1992 $2.64
1993 $2.21
1994 $2.97
1995 $3.01
1996 $2.72
1997 $3.41
1998 $6.78
</TABLE>
<TABLE>
<CAPTION>
US
YEAR COST/BBL
<S> <C>
1992 $4.85
1993 $4.77
1994 $4.70
1995 $4.18
1996 $5.26
</TABLE>
<TABLE>
<CAPTION>
FOREIGN
YEAR COST/BBL
<S> <C>
1992 $6.55
1993 $5.80
1994 $4.88
1995 $4.85
1996 $3.88
</TABLE>
<PAGE> 15
<TABLE>
<CAPTION>
SLIDE 17: DESCRIPTION OF IMAGE MATERIAL:
AVERAGE PRODUCTION COSTS PER BARREL OF OIL EQUIVALENT
YEAR PRODUCTION COST/BBL
<S> <C>
1986 $2.65
1987 $1.65
1988 $1.64
1989 $1.53
1990 $1.73
1991 $1.98
1992 $1.96
1993 $2.18
1994 $2.46
1995 $2.62
1996 $2.46
1997 $2.54
1998 $2.47
</TABLE>
SLIDE 18: DESCRIPTION OF IMAGE MATERIAL:
REVENUE AND NET INCOME PER EMPLOYEE
<TABLE>
<CAPTION>
YEAR REVENUE NET INCOME
<S> <C> <C>
1980 $ 376,448 $ 177,448
1981 $ 537,685 $ 236,200
1982 $ 733,305 $ 230,541
1983 $ 743,394 $ 243,944
1984 $ 696,226 $ 186,493
1985 $ 491,015 $ 148,071
1986 $ 522,566 $ 80,768
1987 $ 464,978 $ 84,719
1988 $ 434,762 $ 156,495
1989 $ 410,945 $ 67,098
1990 $ 566,064 $ 103,521
1991 $ 421,489 $ 52,002
1992 $ 436,812 $ 94,094
1993 $ 453,623 $ 103,154
1994 $ 555,666 $ 145,885
1995 $ 459,777 $ 82,004
1996 $ 752,021 $ 252,602
1997 $ 877,060 $ 287,355
1998 $ 621,735 $ 150,267
</TABLE>
<PAGE> 16
SLIDE 19: DESCRIPTION OF IMAGE MATERIAL:
PANHANDLE ROYALTY COMPANY
SIGNIFICANT WELL ACTIVITY, 1998
Map of Oklahoma, Texas and New Mexico with areas of significant
drilling in fiscal 1998 highlighted.
SLIDE 20: DESCRIPTION OF IMAGE MATERIAL:
Map of the Potato Hills anomaly in Latimer County and Pushmataha
County in the State of Oklahoma showing various features of the
anomaly and the areas in which the company holds interest.
SLIDE 21: DESCRIPTION OF IMAGE MATERIAL:
Map of the South Britton Field in Oklahoma County, Oklahoma
showing the area of the Company?s interests and certain existing,
testing and proposed wells.
SLIDE 22: DESCRIPTION OF IMAGE MATERIAL:
Beginning Value of Stock The Amount of Capital Stock of the
Corporation shall be ONE-HUNDRED- THOUSAND DOLLARS and NO/100 and
shall be divided into TWO-THOUSAND shares of FIFTY DOLLARS each,
Dated this 17th day of December, A. D. 1926 at Range, in the
County of Texas, and States of Oklahoma.
SLIDE 23: DESCRIPTION OF IMAGE MATERIAL:
PANHANDLE ROYALTY COMPANY
(NASDAQ-PANRA)
is engaged in the acquisition, ownership, management and
development of its fee minerals. It actively participates in the
exploration, drilling, production and acquisition of hydrocarbons
on internally and externally generated prospects. Its stock is
traded on the NASDAQ small cap stock market under the symbol
PANRA. The company?s office is located in Oklahoma City while its
mineral holdings and production are situated in Oklahoma, New
Mexico, Texas, and twelve (12) other states.
<PAGE> 17
SLIDE 24: DESCRIPTION OF IMAGE MATERIAL:
1998 DIRECTORS
Michael A. Crawley
Sam J. Cerny
E. Chris Kauffman
H W Peace II
Ray H. Potts
Robert A. Reece
Jerry Smith
SLIDE 25: DESCRIPTION OF IMAGE MATERIAL:
1998 OFFICERS
Jerry Smith - Chairman of the Board
H W Peace II - President & Chief Executive Officer
Michael C. Coffman - Vice President, Chief Financial Officer,
Secretary and Treasurer
Wanda C. Tucker - Vice-President Land
SLIDE 26: DESCRIPTION OF IMAGE MATERIAL:
Panhandle Co-operative Royalty Company was organized and
incorporated on December 17, 1926 for the purpose of conducting a
mining business; including buying and selling lands, oil and gas
leases and royalties upon a co-operative plan.
<PAGE> 18
SLIDE 27: DESCRIPTION OF IMAGE MATERIAL:
SHARE VALUE
<TABLE>
<CAPTION>
Year Price Remarks
<S> <C> <C>
1926 $50.00 One share of stock was traded for 40 acres of Perpetual fee
minerals
1979 $30.00 Stock was split 50 for 1 and Company converted by
Shareholder vote from Coop to Public Company
1982 $14.00 Shareholders approved 10 for 1 stock split
7/1/98 $30.00 Due to stock splits one (1) original share equals 500 today
value has increased 300 fold to where
original $50 share is now worth $15,000 or
208%/year value growth over 72 years
2/1/99 $22.00
</TABLE>
SLIDE 28: DESCRIPTION OF IMAGE MATERIAL:
PANHANDLE ROYALTY COMPANY DIVIDENDS
Original 1 share owner in 1926 will now (1998) have received $7,273 in
Dividends for $50 Value Stock
This total Dividend averages $101.01/year for that original $50 share
Dividends have been paid for last 44 consecutive years Dividends have been paid
for 59 years of 72 years existence
1998 Dividend of 90 cents/share is equivalent of $450/share for an original
holder of 1 share in
1926 or 9 times that share's value
1998 Dividend is highest ever paid in one year to holders of an original share
<PAGE> 19
SLIDE 29: DESCRIPTION OF IMAGE MATERIAL:
PANHANDLE ROYALTY COMPANY
SIGNIFICANT ACQUISITIONS
Date of Acquisition: 2/1/85
From: Lucas Bros. (Asset)
Price: $525,000
Remarks: 440 ac. Minerals (OK, TX, MT, N. DAK, NEB.)
221 ac. Leasehold
62 wells
Date of Acquisition: 3/1/86
From: Texas-Wis. Royalty Co. (Asset)
Price: $50,000
Remarks: 1,666 ac. Minerals (TX & MT)
22 wells
Date of Acquisition: 12/1/86
From: Pure Royalty (Asset)
Price: $70,000
Remarks: 720 ac. Minerals (35 Co.'s in Oklahoma)
29 wells
Date of Acquisition: 3/31/88
From: New Mexico Royalty Co. (Merger)
Price: $534,500 (41,410 Sh. Stock Issued)
Remarks: 52,217 ac. Minerals (N. Mexico & Colorado)
17 wells
Date of Acquisition: 12/31/91
From: Brewer & Taylor (RI RR) (Asset)
Price: $125,000
Remarks: 4,225 ac. Minerals (E. N. Mexico & TX. Pan.)
51 wells
Date of Acquisition 5/1/92
From: Cottey College (Asset)
Price: $12,450
Remarks: 208 ac. Minerals (Stephens & Carter Co., Ok)
10 wells
<PAGE> 20
Date of Acquisition: 3/30/93
From: ORYX (Asset)
Price: $374,509
Remarks: 10.373 ac. Non prod. Min. (OK & Ark)
Date of Acquisition: 7/1/95
From: Petrocorp (Asset)
Price: $2,150,000
Remarks: 32,816 ac. Minerals (OK, TX and Nine other states)
202 wells
Date of Acquisition: 10/1/96
From: Mary Mays Trust
Price: $152,377
Remarks: 715 ac. Minerals (Garvin & McClain Co., OK)
134 wells
<PAGE> 21
SLIDE 30: DESCRIPTION OF IMAGE MATERIAL:
MINERALS & PRODUCTION EVALUATED BUT NOT PURCHASED
DATE: 5/91
Name: Hefner Trust
Value: $3,705,000
Remarks: 3,219 net acres 600 wells OK, TX, LA, IL, and NM
Offer: Sold at $4,000,000 L. E. Jones
DATE: 8/96
Name: New York Life
Value: $2,511,000
Remarks: 26,701 net acres 2,350 wells OK and TX
Offer: Offer not Competitive
DATE: 5/97
Name: Trio Petroleum
Price: $3,615,000
Remarks: 18,277 net acres 1,716 wells OK, Canada and twelve other states
Offer: Sold at $6,000,000 we were in the middle of 11 Bids
DATE: 9/97
Name: Plains Radio Petroleum
Price: $465,090 (For 1/4 int.)
Remarks: 9,302 net acres (1/4 interest) Chaves Co., NM
Offer: They decided to sell min, w/real estate cattle, etc.
DATE: 12/97
From: Warren Foundation
Price: $2,420,400 (For 1/2 int.)
Remarks: 36,302 net acres 546 wells OK and ten other states
Offer: Withdrawn
DATE: 7/98
From: Toreador Royalty
Price: $9 - 11 million
Remarks: 530,000 net acres 159 wells
Offer: Withdrawn by Toreador
<PAGE> 22
SLIDE 31: DESCRIPTION OF IMAGE MATERIAL:
PANHANDLE ROYALTY COMPANY
1988 NEW MEXICO OSAGE MERGER
Acquired Company with 52,217 net mineral acres for 1/2 stock and 1/2 cash
($550,000)
Participated in 14 wells with Working Interest (as of 1/1/99) ($1,081,971)
Operating Expense and Severance Tax ($583,154)
Total Costs (1/1/99) ($2,215,125)
Oil & Gas Revenue (as of 1/1/99) $9,442,319
Profit $7,227,194
Payout 5 1/2 years
Return on Initial Investment 13.14/1
All but about $10,000/year of Revenue is from Dagger Draw Field (14 Working
Interest and 21 Royalty Interest wells)
Dagger Draw has remaining undrilled (5 Working Interest and 10 Royalty Interest
locations)
SLIDE 32: DESCRIPTION OF IMAGE MATERIAL:
PANHANDLE ROYALTY COMPANY
ESTIMATED UNDERLYING CASH VALUE/SHARE 9/30/98)
<TABLE>
<S> <C>
Proved Oil and Gas Reserves (Unescalated) Maximum $ 23,125,470
Proved Oil and Gas Reserves (Discounted 10%) Minimum $ 15,398,209
179,841 Mineral acres @ $75/ac Maximum $ 13,488,075
179,841 Mineral acres @ $50/ac Minimum $ 8,992,050
TOTALS Maximum $ 36,612,545
Minimum $ 24,390,259
Price/share (679,764 Share Outstanding) Maximum $ 53.86
Minimum $ 35.88
Actual Trade Price (9/30/99) $ 26.25
</TABLE>
Note: From the above numbers the following may be deducted:
Future Income Tax
Any Debt
Drop in Oil and Gas Price
To the above numbers the following may be added:
Cash and CD'S
Furnitures & Fixtures
Pipeline and other Company's Stock
Increase in Oil and Gas Price
<PAGE> 23
SLIDE 33: DESCRIPTION OF IMAGE MATERIAL:
PANHANDLE ROYALTY COMPANY
ESTIMATED UNDERLYING CASH VALUE/SHARE (9/30/97)
<TABLE>
<S> <C>
Proved Oil & Gas Reserves (Unescalated) Maximum $ 36,374,530
Proved Oil & Gas Reserves (Discounted 10%) Minimum $ 24,321,470
175,596 Mineral acres @ $75/ac Maximum $ 13,169,700
175,596 Mineral acres @ $50/ac Minimum $ 8,779,800
TOTALS Maximum $ 49,544,230
Minimum $ 33,101,270
Price/share (677,627 Share Outstanding) Maximum $ 73.11
Minimum $ 48.85
Actual Trade Price (9/30/97) $ 29.75
</TABLE>
Note: From the above numbers the following may be deducted:
Future Income Tax
Any Debt (None)
Drop in Oil and Gas Prices
To the above numbers the following may be added:
Cash & CD'S
Furnitures & Fixtures
Pipeline and other Company's Stock
Increase in Oil & Gas Price
