Panhandle reports increase in reserves
Panhandle Oil and Gas Inc. reported Wednesday it grew its reserves in 2018, especially when it comes to oil and natural gas liquids.
Officials said the firm's estimated total proved reserves at Sept. 30 were up 3 percent to nearly 174 billion cubic feet of natural gas equivalent, compared to 167 billion equivalent cubic feet the previous year.
They also noted, however, that the percent of oil and natural gas liquids making up the total amount climbed by 13 percent, year over year.
"We strategically made a concerted effort to grow oil and natural gas liquids in 2018, as this was the focus of both our drilling and acquisition efforts, while ... eliminating marginal natural gas properties," Panhandle CEO Paul F. Blanchard said.
Blanchard said Panhandle plans to continue growing those oil and liquid reserves in the ongoing year and predicted that growth should accelerate along with production from wells it will be developing in the Eagle Ford Shale field, the STACK, SCOOP, Midland Basin and Bakken.
Officials said wellhead prices for the company on Sept. 30 were $2.56 per thousand cubic feet of natural gas, $62.86 per barrel of oil and $26.13 per barrel of Natural gas liquids.
They said the company's total estimated proved reserves as of Sept. 30, 2018 were approximately 69 percent natural gas, 21 percent oil and 10 percent natural gas liquids.
Blanchard said he expects the company's net cash flow will be about $204 million in 2018, versus $126 million the previous year due to "strong relative growth in oil and natural gas liquids, along with a higher oil price."