Panhandle Oil & Gas: Investor Update 2009

1. NYSE: PHX August 9-13, 2009 IPAA OGIS Florida-February 17-18, 2009 2008 IPAA OGIS San Francisco, CA - October 6 2008

2. 2 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. The Oil and Gas Conference – Denver, CO - August 2009

3. Who isPanhandle Oil and Gas?NYSE: PHX The Oil and Gas Conference – Denver, CO - August 2009

4. Panhandle Oil and Gas Inc. 4 • 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 The Oil and Gas Conference – Denver, CO - August 2009

5. UNIQUE: Operational Strategy 5 • 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 The Oil and Gas Conference – Denver, CO - August 2009

6. Financial Highlights 6 The Oil and Gas Conference – Denver, CO - August 2009

7. Financial Highlights 7 The Oil and Gas Conference – Denver, CO - August 2009

8. Financial Highlights: Condensed Balance Sheet 8 The Oil and Gas Conference – Denver, CO - August 2009

9. PHX: 2009 Operating Strategies 9 • 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 The Oil and Gas Conference – Denver, CO - August 2009

10. PHX: 2009 Operating Strategies-continued 10 • $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 The Oil and Gas Conference – Denver, CO - August 2009

11. Trailing 12-Mo. Operating and G&A Expense 11 Peer Average: $2.44 $/Mcfe $1.62 PHX 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. The Oil and Gas Conference – Denver, CO - August 2009

12. 3-Year Finding and Development Cost 12 $/Mcfe Peer Average: $3.49 $2.50 PHX Source: EnerCom Incorporated. Peer set includes: BRY, CHK, CLR, CRK, DVN, FST, GDP, GMXR, HK, NFX, PETD, PLLL, PQ, PVA, PXP, RRC, SWN, XTO. The Oil and Gas Conference – Denver, CO - August 2009

13. Debt to Market Capitalization 13 Peer Average: 95% 9% PHX 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. The Oil and Gas Conference – Denver, CO - August 2009

14. Asset Intensity 14 Peer Average: 63% 47% PHX 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. The Oil and Gas Conference – Denver, CO - August 2009

15. Trailing 12-Mo. Capital Efficiency 15 Peer Average: 217% 201% PHX 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. The Oil and Gas Conference – Denver, CO - August 2009

16. Asset Pyramid • 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 The Oil and Gas Conference – Denver, CO - August 2009

17. Operations Overview The Oil and Gas Conference – Denver, CO - August 2009

18. Overview/Fiscal Year 2008 Operating Highlights 18 • 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 The Oil and Gas Conference – Denver, CO - August 2009

19. PHX: Mid-Year Proved Reserve Update 19 The Oil and Gas Conference – Denver, CO - August 2009

20. Panhandle Oil and Gas Mineral Holdings Significant Mineral Acreage Holdings Net Acres (Thousands) Leasehold The Oil and Gas Conference – Denver, CO - August 2009

21. Economic Impact of Participation with Mineral Interest Arkansas Fayetteville • 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) 19% Lower 42%Higher The Oil and Gas Conference – Denver, CO - August 2009

22. PHX Quarterly Production Profile 22 CAGR 28.4% The Oil and Gas Conference – Denver, CO - August 2009

23. PHX Areas of Focus 23 23 The Oil and Gas Conference – Denver, CO - August 2009

24. Western Oklahoma: Anadarko Basin 24 Anadarko Basin • Anadarko Basin (Cana) horizontal Woodford • Anadarko Basin (Colony) horizontal Granite Wash • Anadarko Basin (SE Leedey) horizontal Cleveland The Oil and Gas Conference – Denver, CO - August 2009

25. Anadarko Basin: Woodford Shale 25 • ~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 The Oil and Gas Conference – Denver, CO - August 2009

26. Anadarko Basin: Woodford Shale 26 The Oil and Gas Conference – Denver, CO - August 2009

27. Arkansas: Fayetteville Shale 27 • Daily net production ~ 2.9 Mmcf per day • PHX generates superior returns • Drilling on our minerals, we keep royalty • 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 • 138 royalty interest wells producing • ~ 2,200 probable/possible locations Fayetteville Shale The Oil and Gas Conference – Denver, CO - August 2009

28. Arkansas: Fayetteville Shale 28 The Oil and Gas Conference – Denver, CO - August 2009

29. Arkansas: Fayetteville Shale Reserves 29 *DeGolyer and MacNaughton, as of 9/30/08 based on 8 wells per section Operators: Southwestern Energy, Chesapeake, Petrohawk Net Reserves (Bcf) to PHX Proved 3.5 Probable 19.0 * Possible 39.0 * ~ 2,200 locations The Oil and Gas Conference – Denver, CO - August 2009

30. SE Oklahoma: Woodford Shale 30 • Daily net production ~ 8.4 Mmcf per day • PHX generates superior returns • Drilling on our minerals, we keep royalty • 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 • 24 royalty interest wells producing • ~ 1,200 probable/possible locations Woodford Shale The Oil and Gas Conference – Denver, CO - August 2009

31. SE Oklahoma: Woodford Shale 31 The Oil and Gas Conference – Denver, CO - August 2009

32. SE Oklahoma: Woodford Shale Reserves 32 Net Reserves (Bcf) to PHX Proved 15 Probable 67.0 * Possible 36.0 * ~ 1,200 locations * DeGolyer and MacNaughton, as of 9/30/08 based on 8 wells per section Operators: Newfield, Continental, Devon, BP, XTO The Oil and Gas Conference – Denver, CO - August 2009

33. The Panhandle Oil and Gas Advantage 33 • 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 The Oil and Gas Conference – Denver, CO - August 2009