-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CYf13MrZ3zC+t8Xf5H60kV1b0bqKLtsU6rBlJjKYgoLfUXKnM2d9bCtbj41vaUmw 9ZhN+w0EqO5Vn2Ms7ds8tg== 0000950134-99-002183.txt : 19990331 0000950134-99-002183.hdr.sgml : 19990331 ACCESSION NUMBER: 0000950134-99-002183 CONFORMED SUBMISSION TYPE: DEFA14A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19990330 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PANHANDLE ROYALTY CO CENTRAL INDEX KEY: 0000315131 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 731055775 STATE OF INCORPORATION: OK FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: DEFA14A SEC ACT: SEC FILE NUMBER: 000-09116 FILM NUMBER: 99577011 BUSINESS ADDRESS: STREET 1: 5400 NW GRAND BLVD STREET 2: GRAND CENTRE STE 210 CITY: OKLAHOMA CITY STATE: OK ZIP: 73112 BUSINESS PHONE: 4059481560 DEFA14A 1 DEFINITIVE ADDITIONAL MATERIAL 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: [ ] 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.
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: ------------------------------------------------------------------------ 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) 3 SLIDE 3. DESCRIPTION OF IMAGE MATERIAL: PANHANDLE ROYALTY COMPANY FINANCIAL DATA SHEET SUMMARY
FISCAL FISCAL FISCAL 1998 1993 1988 ------------- ------------- ------------- 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)
SLIDE 4. DESCRIPTION OF IMAGE MATERIAL: PANHANDLE ROYALTY COMPANY OPERATING DATA SHEET SUMMARY
Fiscal Fiscal Fiscal 1998 1993 1988 ------------- ------------- ------------- 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)
4 SLIDE 5: DESCRIPTION OF IMAGE MATERIAL: TOTAL REVENUES TOTAL NET INCOME
FISCAL YEAR REVENUES NET INCOME 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
5 SLIDE 6: DESCRIPTION OF IMAGE MATERIAL: TOTAL ASSETS AND SHAREHOLDERS EQUITY
FISCAL YEAR ASSETS SHAREHOLDERS 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
6 SLIDE 7: DESCRIPTION OF IMAGE MATERIAL: STOCK PRICE AT SEPTEMBER 30
YEAR PRICE 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
7 SLIDE 8: DESCRIPTION OF IMAGE MATERIAL: DIVIDENDS PAID PER SHARE
YEAR DIVIDEND 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
8 SLIDE 9: DESCRIPTION OF IMAGE MATERIAL: TOTAL GROSS PRODUCING WELLS
YEAR WELLS 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
9 SLIDE 10: DESCRIPTION OF IMAGE MATERIAL: NET GAS PRODUCTION/MCF
YEAR MCF 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
10 SLIDE 11: DESCRIPTION OF IMAGE MATERIAL NET OIL PRODUCTION/BBLS
YEAR OIL 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
11 SLIDE 12: DESCRIPTION OF IMAGE MATERIAL: TOTAL PROVED RESERVES
YEAR OIL/BBLS GAS/MCF 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
12 SLIDE 13: DESCRIPTION OF IMAGE MATERIAL: ESTIMATED FUTURE NET CASH FLOWS FROM PROVED OIL & GAS RESERVES
YEAR UNDISCOUNTED 10% DISCOUNTED 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
13 SLIDE 14: DESCRIPTION OF IMAGE MATERIAL: CAPITAL EXPENDITURES FOR OIL & GAS EXPLORATION & PRODUCTION COSTS & PROPERTY ACQUISITION COSTS
YEAR COST 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
SLIDE 15: DESCRIPTION OF IMAGE MATERIAL: ESTIMATED RETURN ON INVESTMENT FOR WELLS COMPLETED IN THE YEAR
YEAR RETURN 1992 4.24% 1993 5.56% 1994 3.39% 1995 3.81% 1996 5.45% 1997 4.21% 1998 1.33%
14 SLIDE 16: DESCRIPTION OF IMAGE MATERIAL: FINDING COSTS PER BARREL OF OIL FOR WELLS COMPLETED IN THE YEAR
PRC YEAR COST/BBL 1992 $2.64 1993 $2.21 1994 $2.97 1995 $3.01 1996 $2.72 1997 $3.41 1998 $6.78
US YEAR COST/BBL 1992 $4.85 1993 $4.77 1994 $4.70 1995 $4.18 1996 $5.26
FOREIGN YEAR COST/BBL 1992 $6.55 1993 $5.80 1994 $4.88 1995 $4.85 1996 $3.88
15
SLIDE 17: DESCRIPTION OF IMAGE MATERIAL: AVERAGE PRODUCTION COSTS PER BARREL OF OIL EQUIVALENT YEAR PRODUCTION COST/BBL 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
SLIDE 18: DESCRIPTION OF IMAGE MATERIAL: REVENUE AND NET INCOME PER EMPLOYEE
YEAR REVENUE NET INCOME 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
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. 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. 18 SLIDE 27: DESCRIPTION OF IMAGE MATERIAL: SHARE VALUE
Year Price Remarks 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
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 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 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 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 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) 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
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 23 SLIDE 33: DESCRIPTION OF IMAGE MATERIAL: PANHANDLE ROYALTY COMPANY ESTIMATED UNDERLYING CASH VALUE/SHARE (9/30/97) 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
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 -----END PRIVACY-ENHANCED MESSAGE-----