Panhandle Oil and Gas Inc. Announces 10% Increase of Proved Reserves to 59.6 Bcfe and an Update to Probable and Possible Reserves

Panhandle Oil and Gas Inc. Announces 10% Increase of Proved Reserves to 59.6
Bcfe and an Update to Probable and Possible Reserves

OKLAHOMA CITY, Nov. 9 /PRNewswire-FirstCall/ -- Panhandle Oil and Gas Inc.
(NYSE: PHX, "the Company"), a growing independent oil and natural gas company
with reserves and production in the Southeastern Oklahoma Woodford Shale, the
Arkansas Fayetteville Shale, the Anadarko Basin (Cana) Woodford Shale and
western Oklahoma, today announced estimated total proved reserve volumes for
the Company's fiscal year ended September 30, 2009.

Total Proved Reserves Increase 10%
Panhandle's estimated total proved reserves at September 30, 2009 increased
10% to 59.6 Bcfe from 54.1 Bcfe reported on September 30, 2008, based on SEC
mandated pricing in effect on September 30, 2009 of $2.86 per Mcf for natural
gas and $66.96 per barrel for oil. Panhandle delivered this growth in reserve
volumes despite the challenges of lower gas prices used to calculate reserves,
which dropped from $4.51 per Mcf at September 30, 2008 to $2.86 per Mcf this
year. Since 2005, Panhandle's total proved reserves have grown 91% from 31.2
Bcfe to 59.6 Bcfe, at a compound annual growth rate of 17.5%, principally
through reserves added from drilling in the Southeastern Oklahoma Woodford
Shale and the Arkansas Fayetteville Shale. Panhandle's total estimated proved
reserves are 91% natural gas.

Because Panhandle's fiscal year-end is September 30, 2009, the use of the
SEC's Modernization of Oil and Gas Reporting Rules cannot be adopted by the
Company until its September 30, 2010 year-end.

Approximately 9.2 Bcfe of the 2009 total proved reserves, or 15%, are
categorized as Proved Undeveloped (PUD). A substantial number of PUD
locations are not included in the September 30, 2009 Reserve Report as the use
of the $2.86 per Mcf price caused many of the Company's PUD locations to
calculate uneconomic, and as such, could not be included as reserves in the
Report.

The Proved Reserves Chart below delineates and compares SEC pricing reserves
with the Company's in-house normalized pricing reserves. The normalized price
case allows comparison of year to year reserves at a constant price. Using
the normalized pricing case Proved Reserves increased 34% year over year to
73.3 Mcfe at September 30, 2009 and include 17.7 Bcfe of PUD reserves,
representing 24% of total reserves.

Proved Reserves
---------------
In-House Normalized
SEC Pricing Pricing (2)
September 30, September 30, September 30, September 30,
2009 2008 2009 2008 (1)
---- ---- ---- --------

Proved Developed
Reserves:
Barrels of Oil 882,987 895,426 852,766 800,124
Mcf of Gas 45,036,460 35,970,442 50,484,900 37,036,924
------------ ------------ ------------ ------------
Mcfe (1) 50,334,382 41,342,998 55,601,496 41,837,668
Proved Undeveloped
Reserves:
Barrels of Oil 37,886 94,532 56,147 93,806
Mcf of Gas 8,991,350 12,180,226 17,389,127 12,373,039
------------ ------------ ------------ ------------
Mcfe (1) 9,218,666 12,747,418 17,726,009 12,935,875
Total Proved Reserves:
Barrels of Oil 920,873 989,958 908,913 893,930
Mcf of Gas 54,027,810 48,150,668 67,874,027 49,409,963
------------ ------------ ------------ ------------
Mcfe (1) 59,553,048 54,090,416 73,327,505 54,773,543
============ ============ ============ ============
10% Discounted
Estimated Future
Net Cash Flows
(before federal
income taxes)
Proved Developed $74,756,140 $104,840,854 $141,840,030 $111,248,070
Proved Undeveloped 6,800,080 15,068,040 29,060,100 22,244,110
------------ ------------ ------------ ------------
Total $81,556,220 $119,908,894 $170,900,130 $133,492,180
============ ============ ============ ============
Pricing At Date Shown
Oil/Barrels
(constant) $66.96 $97.74 $45.00 $45.00
Gas/Mcf (constant) $2.86 $4.51 $6.00 $6.00

(1) Crude oil converted to a thousand cubic feet of natural gas
equivalent by using the ratio of one barrel of crude oil to six Mcf
of natural gas.
(2) Pricing used by Company for year to year comparisons of reserves.

Mcf, thousand cubic feet of natural gas
Bcfe, billion cubic feet of natural gas equivalent
Mcfe, thousand cubic feet of natural gas equivalent

Probable and Possible Reserves
The Company has calculated probable and possible undeveloped reserves for
certain interests owned in the two Woodford Shale plays in Oklahoma, the
Fayetteville Shale in Arkansas and the Colony Granite Wash play in western
Oklahoma. Estimates of reserves were prepared in accordance with the
definitions and guidance used by the Society Of Petroleum Engineers for
estimating probable and possible reserves.

Estimated Net Probable And Possible Reserves
--------------------------------------------
Anadarko
Southeastern Arkansas Basin
Oklahoma Fayette- (Cana) Colony
Woodford ville Woodford Granite
Shale Shale Shale Wash Other Total
----- ----- ----- ---- ----- -----
Probable, Bcfe 55.6 16.7 12.5 1.7 0.9 87.4
Possible, Bcfe 58.6 48.4 34.8 5.5 0.6 147.9
------- ------- ------- ------- ------- -------
Total, Bcfe 114.2 65.1 47.3 7.2 1.5 235.3
======= ======= ======= ======= ======= =======
Average Reserves
per Undeveloped
Location, Bcfe 2.3 1.8 3.4 2.5
======= ======= ======= =======

Management Comments
Michael C. Coffman, Panhandle's President and CEO said: "Fiscal 2009 increases
in reserves and production are the continuing result of Panhandle's commitment
to a more aggressive operating strategy of taking larger total interests in
wells drilled on our mineral acreage to maximize the value of the underlying
hydrocarbon assets for our shareholders. Our drilling program over the last
three plus years continues to build on the Company's reserve base and
production volumes. The majority of this increased capital expenditure level
has been financed from cash flow with only a minor increase in debt and no
issuances of Company equity securities. We are committed to continuing these
strategies to build our reserve base and production volumes in fiscal 2010 and
beyond. We currently expect our capital expenditure level for 2010 to be
reduced as compared to 2009 assuming natural gas prices remain under downward
pressure; however, our experienced management team and the proven operators
with efficient operations in world class plays are capable of deploying
additional capital to accelerate growth should natural gas prices escalate."

Paul F. Blanchard, Panhandle's Vice-President and COO added: "We continue to
see new resource plays develop in areas in which the Company owns its 250,000
plus acres of perpetual minerals. These new resource plays continue to
provide Panhandle with additional probable and possible reserves. In total,
the Company now has over 3,400 probable and possible drilling locations in
these resource plays. The emergence of the Anadarko Basin (Cana) Woodford
Shale and the Colony Granite Wash plays in Western Oklahoma added 54.5 Bcf of
probable and possible reserves to the Company's base in fiscal 2009. With the
rapid development of additional resource plays over the last several years we
expect the emergence of additional plays and/or the expansion of existing
plays to develop on the Company's substantial mineral acreage holdings."

Panhandle Oil and Gas Inc. (NYSE-PHX) is engaged in the exploration for and
production of natural gas and oil. Additional information on the Company can
be found at www.panhandleoilandgas.com.

Forward-Looking Statements and Risk Factors -This report includes
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Forward-looking statements include current expectations or forecasts of
future events. They may include estimates of oil and gas reserves, expected
oil and gas production and future expenses, projections of future oil and gas
prices, planned capital expenditures for drilling, leasehold acquisitions and
seismic data, statements concerning anticipated cash flow and liquidity and
Panhandle's strategy and other plans and objectives for future operations.
Although Panhandle believes the expectations reflected in these and other
forward-looking statements are reasonable, we can give no assurance they will
prove to be correct. They can be affected by inaccurate assumptions or by
known or unknown risks and uncertainties. Factors that could cause actual
results to differ materially from expected results are described under "Risk
Factors" in Part 1, Item 1 of Panhandle's 2008 Form 10-K filed with the
Securities and Exchange Commission. These "Risk Factors" include the
volatility of oil and gas prices; Panhandle's ability to compete effectively
against strong independent oil and gas companies and majors; the availability
of capital on an economic basis to fund reserve replacement costs; Panhandle's
ability to replace reserves and sustain production; uncertainties inherent in
estimating quantities of oil and gas reserves and projecting future rates of
production and the amount and timing of development expenditures;
uncertainties in evaluating oil and gas reserves; unsuccessful exploration and
development drilling; declines in the values of our oil and gas properties
resulting in write-downs; the negative impact lower oil and gas prices could
have on our ability to borrow; and drilling and operating risks.

Do not place undue reliance on these forward-looking statements, which speak
only as of the date of this release, and Panhandle undertakes no obligation to
update this information. Panhandle urges you to carefully review and consider
the disclosures made in this presentation and Panhandle's filings with the
Securities and Exchange Commission that attempt to advise interested parties
of the risks and factors that may affect Panhandle's business.

SOURCE Panhandle Oil and Gas Inc.

Michael C. Coffman, +1-405-948-1560, for Panhandle Oil and Gas Inc.