Dutton Associates Announces Investment Opinion: Panhandle Royalty Strong Buy Rating Maintained in Update by Dutton Associates.

EL DORADO HILLS, Calif. -- Dutton Associates issues its updated initial coverage of Panhandle Royalty (AMEX:PHX) maintaining a Strong Buy rating and an adjusted 12-month price target of $33.00. The 16-page report by Dutton senior analyst Les Childress is available at www.jmdutton.com, and from First Call, Bloomberg (JMDA), Zacks, Reuters, and other leading financial portals.

Panhandle's structure as a mineral and royalty interest oil and gas company, and the "spread" of its holdings throughout Oklahoma (a state with distinct cost and operating advantages for the smaller oil and gas companies) make it more profitable on a margin basis than the average independent U.S. oil and gas E&P. Panhandle's primary strength is the size and makeup of its minerals acquired over many years. Gross acres total 1.7 million acres of mineral interests and approximately 19,000 additional acres of leases, which when distilled means Panhandle has an interest in 5,022 producing oil and gas wells, of which 1,150 are working interest wells. Currently the Company has 77 wells waiting completion and 79 more that are in the process of drilling. If Panhandle Royalty Company had a market cap of $9.8 billion or even $980 million instead of $109 million, market participants would hail it as a "must have" core holding given its structure, stability, longevity and financial performance. We believe it should be a core holding for any investor with a need for exposure to natural resources generally and oil and gas specifically.

About Dutton Associates

Dutton Associates is one of the largest independent investment research firms in the U.S. Its 27 analysts, primarily CFAs, have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 95 enrolled companies, and its institutional-quality research, estimates, and ratings are carried in all the major databases serving institutions and online investors.

The cost of enrollment in our one-year continuing research program is US $33,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $46,000 from the Company for 8 Research Reports with coverage commencing on 7/25/2002. We do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.