2008 IPAA OGIS San Francisco, CA - October 6 2008

IPAA OGIS Florida-February 17-18, 2009

1

2008 IPAA OGIS San Francisco, CA - October 6 2008

NYSE: PHX

August 9-13, 2009

The Oil and Gas Conference – Denver, CO - August 2009The Oil and Gas Conference – Denver, CO - August 2009

22

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” includes 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.


Who isPanhandle Oil and Gas?

NYSE: PHX

3


44Panhandle Oil and Gas Inc.

Non-operating independent oil and gas company with current drilling projects in the Woodford Shale, Fayetteville Shale and Western Oklahoma

Market Capitalization - $210 million

52-week range - $13.15 - $39.98

8.3 million shares outstanding

Insider ownership – 13.8%

Unique and Evolving company


55UNIQUE: Operational Strategy

Use ownership of 254,600 mineral acres as base, “legacy assets”

Use mineral acreage ownership to participate with a working interest in the drilling of a significant numberof wells Working interest in 1,350 wells Royalty interest in 3,300 wells

As a non-operator, Panhandle participates in drilling with operating companies, principally large independents.

Majority of drilling is on perpetually owned fee mineral acreage, drilling on owned fee mineral acres maximizes rate of return, royalty on our acres is paid to Panhandle

Approximately 75% of oil and gas sales revenue is from working interests in wells


66

Fiscal Year Ended

September 30,

Revenue & Earnings 2008

2007

Revenue $69,119,121 $39,128,911

Net income $21,555,769 $6,343,464

Earnings per share $2.54 $.75

Net cash provided by operating activities $39,924,719 $28,106,500

Capital expenditures $38,747,749 $27,785,431

Mcfe produced (33% increase) 7,722,450 5,791,407

Average Mcfe sales price $8.94 $6.47

Financial Highlights


77

Six Months Ended

March 31,

Revenue & Earnings 2009 2008

Revenue $20,193,717 $26,451,025

Net income (loss) ($1,819,885) $6,311,588

Earnings per share ($.22) $.74

Net cash provided by operating activities $24,911,686 $16,357,801

Capital expenditures $30,271,588 $16,095,211

Mcfe produced (37% increase) 4,875,423 3,558,963

Average Mcfe sales price $3.91 $7.91

Financial Highlights


88

March 31, 2009

Current assets $10,330,752

Property and equipment 203,613,769

Less accumulated DD&A (101,670,052)

Net property and equipment 101,943,717

Other 1,043,800

Total assets $113,318,269

Current liabilities $5,462,860

Long-term debt 15,810,247

Deferred income taxes 24,531,750

Asset retirement obligation 1,660,512

Long-term derivative contracts 282,540

Shareholders equity 65,570,360

Total liabilities and equity $113,318,269

Financial Highlights: Condensed Balance Sheet


99PHX: 2009 Operating Strategies

Maintain operational and financial flexibility

Prudently manage capital expenditures and credit facility drawdowns

Continue and expand participation in unconventional plays

Continue to exploit legacy assets, leveraging minerals ownership

Maintain ability and commitment to prudently maximize current and future drilling and development opportunities

Potentially divest of a limited number of properties in non-core areas or groups of marginal properties


1010PHX: 2009 Operating Strategies-continued

$50 million credit facility with Oklahoma banks, maturity October, 2011

Outstanding balance on credit facility at July 30, 2009, $11.1 million

$35 million borrowing base, as of May 2009 Would increase borrowing base, if needed

Natural Gas Swaps (all swaps tied to specific Oklahoma pipeline price)

Continually evaluating hedge position

Period Volume/Month Average Pipeline Price

2009 300,000 mmbtu $3.775

2010 300,000 mmbtu $5.30

11Trailing 12-Mo. Operating and G&A Expense

Peer Average: $2.44P

HX

$1.62$

/Mcf

e

Note: Trailing twelve month for periods ending 3/31/09.Source: EnerCom Incorporated. Peer set includes: BRY, CHK, CLR, CRK, DVN, FST, GDP, GMXR, HK, NFX, PETD, PLLL, PQ, PVA, PXP, RRC, SWN, XTO.


123-Year Finding and Development Cost

Peer Average: $3.49

PH

X

$2.50

$/M

cfe

Source: EnerCom Incorporated. Peer set includes: BRY, CHK, CLR, CRK, DVN, FST, GDP, GMXR, HK, NFX, PETD, PLLL, PQ, PVA, PXP, RRC, SWN, XTO.


13Debt to Market Capitalization

Peer Average: 95%

PH

X

9%

Note: As of 7/17/09.Source: EnerCom Incorporated. Peer set includes: BRY, CHK, CLR, CRK, DVN, FST, GDP, GMXR, HK, NFX, PETD, PLLL, PQ, PVA, PXP, RRC, SWN, XTO.


14Asset Intensity

Peer Average: 63%

PH

X

47%

Note: As of 3/31/09.Source: EnerCom Incorporated. Peer set includes: BRY, CHK, CLR, CRK, DVN, FST, GDP, GMXR, HK, NFX, PETD, PLLL, PQ, PVA, PXP, RRC, SWN, XTO.


15Trailing 12-Mo. Capital Efficiency

Peer Average: 217%

PH

X

201%

Note: Trailing twelve month for periods ending 3/31/09.Source: EnerCom Incorporated. Peer set includes: BRY, CHK, CLR, CRK, DVN, FST, GDP, GMXR, HK, NFX, PETD, PLLL, PQ, PVA, PXP, RRC, SWN, XTO.


Asset Pyramid


16

Perpetually owned 198,000 open acres, 56,000 producing or leased acres

Reserves on fee mineral acres, Fayetteville and Woodford Shale’s

Over 4,000 total wells, 88% natural gas

Low ratio of PUD to total proved reserves


Operations Overview 17

The Oil and Gas The Oil and Gas ConferenceConference – Denver, CO - August 2009 – Denver, CO - August 2009

1818Overview/Fiscal Year 2008 Operating Highlights

Total U.S. mineral ownership of ~ 255,000 acres Significant ownership in the Western Oklahoma Anadarko Basin,

Arkansas Fayetteville and the Southeastern Oklahoma Woodford

2008 proved reserves increased 29% to 54.1 Bcfe Reserve replacement 257% Growth through the drillbit 2008 finding cost - $2.64/Mcfe 89% natural gas 76% proved developed producing

2008 annual production increased 33% to 21.2 Mmcfe per day Q3 2009 production increased to 29.1 Mmcfe per day

Superior investment economics Large inventory of undrilled locations in premier established and

developing resource plays Participation with minerals as a working interest owner


1919PHX: Mid-Year Proved Reserve Update

Proved Reserves March 31,

2009September

30,2008

SEC Pricing (1)

Proved reserve volumes 53.1 Bcfe 54.1 Bcfe

Estimated future net cash flows, 10% discounted present value (before income taxes, millions of dollars)

$61.9 $119.9

Normalized Pricing (2)

Proved reserve volumes 62.4 Bcfe 54.8 Bcfe

Estimated future net cash flows,10% discounted present value (before income taxes, millions of dollars)

$156.3 $133.5

1. SEC Pricing September 30, 2008 - $4.52/Mcf & $97.74/Bbl, flatSEC Pricing March 31, 2009 - $2.45/Mcf & $46.93/Bbl, flat

2. Normalized Pricing - $6.00/Mcf & 45.00/Bbl, flat

Panhandle Oil and Gas Mineral Holdings


LeaseholdLeasehold

20

Significant Mineral Acreage Holdings

Net

Acre

s (

Th

ou

san

ds)

0

20

40

60

80

100

120

OK NM TX ND AR

Economic Impact of Participation with Mineral Interest


21

Assumptions:• PHX ownership -1% W.I., 1% NRI

• Typical ownership – 1% W.I., 0.8125% NRI

• Gross well cost - $2,900,000

•Wellhead gas price – 7/31/09 NYMEX Strip, adjusted for basis ($6.19/Mcf wellhead average over life of well)

Arkansas Fayetteville

$1.78

$1.45

24%

34%

0

5

10

15

20

25

30

35

40

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

Typical W.I. Owner PHX Typical W.I. Owner PHX

Finding Cost, $/Mcfe Rate of Return, % (BTAX)

42% Higher

19% Lower


2222PHX Quarterly Production Profile

0

5

10

15

20

25

30

35

Mm

cfe

per

day

CAGR 28.4%

2323PHX Areas of Focus



2424Western Oklahoma: Anadarko Basin

Anadarko Basin (Cana) horizontal Woodford

Anadarko Basin (Colony) horizontal Granite Wash

Anadarko Basin (SE Leedey) horizontal Cleveland

Anadarko Basin


2525Anadarko Basin: Woodford Shale

~30 horizontal wells on production in the play (as of April, 2009)

10,000’ – 13,000’ depth

~ 3,000 Mcfd typical initial month production rate

PHX generates superior returns Drilling on our minerals, we keep royalty

4.3% average NRI in 42 sections (1,365 net acres)

9 working interest wells approved (as of 7/10/09) 4 producers, 1 drilling, 1 testing, 3 scheduled

2 royalty interest wells producing

~ 330 undeveloped locations (based on 8 wells per section)

Anadarko Basin


2626Anadarko Basin: Woodford Shale

Daily net production ~ 2.9 Mmcf per day


2% average N.R.I. in 284 sections (8,000 net acres)

85 working interest wells approved (as of 7/10/09) 62 producers, 1 drilling, 2 testing, 20 scheduled W. I. <1% to 8%, average 4.3% in these wells N.R.I. <1% to 8%, average 5.1% in these wells


~ 2,200 probable/possible locations


2727Arkansas: Fayetteville Shale

Fayetteville Shale


2828Arkansas: Fayetteville Shale


2929

Net Reserves (Bcf) to PHX

Proved 3.5

Probable 19.0 * Possible39.0 * ~ 2,200 locations

Arkansas: Fayetteville Shale Reserves

* DeGolyer and MacNaughton, as of 9/30/08 based on 8 wells per section

Operators: Southwestern Energy, Chesapeake, Petrohawk


3030SE Oklahoma: Woodford Shale

Daily net production ~ 8.4 Mmcf per day


10,000 acres in active counties (Coal, Hughes, Pittsburgh & Atoka)

3.9% average N.R.I. in 185 sections (6,200 net acres)

130 working interest wells approved (as of 7/10/09) 109 producers, 2 drilling, 12 testing, 7 scheduled W.I. <1% to 42%, average 6.9% in these wells N.R.I. <1% to 38%, average 6.9% in these wells


~ 1,200 probable/possible locations

Woodford Shale


3131SE Oklahoma: Woodford Shale


3232

* DeGolyer and MacNaughton, as of 9/30/08

based on 8 wells per section

Operators:

Newfield, Continental, Devon, BP, XTO

SE Oklahoma: Woodford Shale Reserves

Net Reserves (Bcf) to PHX

Proved 15Probable 67.0 * Possible36.0 * ~ 1,200 locations


3333

The Panhandle Oil and Gas Advantage

Strong financial metrics < 10% debt to market capitalization

Broadly diversified perpetual mineral holdings Total US mineral ownership of ~ 255,000 acres

Large drilling inventory in multiple resource plays Over 3,000 locations identified

Substantial advantage in capital efficiency due to mineral ownership Participate with mineral interest as a working interest

owner or;

Retain a significant royalty ownership in properties with no additional capital investment

2008 IPAA OGIS San Francisco, CA - October 6 2008

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