Oklahoma City-based, Panhandle Oil and Gas Inc. (NYSE: PHX) is an oil and natural gas mineral and leasehold acreage-focused capital allocator seeking the highest per share returns while maintaining a conservative net leverage ratio to ensure prosperity in all business and mineral commodity price cycles. The Company's capital allocation tools include: (i) acquisition of mineral acreage, in the cores of resource plays, with substantial undeveloped opportunities; (ii) divestiture of minerals with limited optionality and mineral rights when the amount negotiated exceeds our projected total value and (iii) aggressive leasing of our mineral holdings.
Panhandle Oil and Gas Inc. owns approximately 258,600 acres of perpetual mineral rights and 19,000 acres of leasehold rights in 10 states with a concentration in Oklahoma, Arkansas, Texas, New Mexico and North Dakota. Currently active areas include the SCOOP, STACK and Arkoma Woodford plays in Oklahoma, the Eagle Ford Shale in Texas, the Permian Basin in New Mexico and Texas and the Bakken in North Dakota. As of September 30, 2018, there are 6,079 gross producing oil and gas wells on our mineral and leasehold acreage that generate revenue for the Company. We own a working interest in 1,764 wells, many of which also have a royalty interest, and we own a royalty interest only in an additional 4,315 wells. Production in the 4th quarter of fiscal year 2018 averaged 22,698 Mcf per day, 903 Bo per day and 640 BNGL per day. Seventy-two percent of the Company’s oil and gas revenue is generated from working interest and twenty-eight percent is from royalty interest. The Company's proved reserves at September 30, 2018, were 173.6 Bcfe, with 69% being natural gas, 21% oil and 10% natural gas liquids. The Company's total proved, probable and possible reserves at September 30, 2018, were 636.4 Bcfe. Panhandle does not operate any of its oil and gas properties. Development of the Company's oil and gas properties is conducted in association with operating oil and gas companies, primarily large independent companies.