Panhandle Oil and Gas Inc. announced an operations update. The operator began drilling the first well on 43.6-square-mile acreage block (2,440 net Panhandle acres) in Andrews and Winker Counties, Texas, in mid-December 2015. This block is located on the Central Basin Platform of the Permian Basin and has several potential productive horizons.

This initial well is designed to penetrate and collect data from all of the prospective horizons. Panhandle will receive a proportionately reduced 25% royalty from all production on the property.