August 31, 2005
Tulsa, Oklahoma . . . Unit Corporation (NYSE – UNT) announced
today that its wholly owned subsidiary, Unit Texas Drilling LLC, has
closed its acquisition of all the Texas drilling operations\ of Texas
Wyoming Drilling, Inc., a Texas-based privately-owned company, with
the exception of one rig which Unit will close on in mid-September.
The total purchase price of the acquisition, which includes seven drilling
rigs, was $32 million, $20 million to be paid in cash and $12 million
issued in stock, representing 246,053 shares. Of the total amount $13.3
million in cash and $12 million issued in stock was paid today. The
balance will be paid when Unit takes possession of the seventh rig.
Of the seven drilling rigs, six are currently operating under contract
and the seventh rig is completing refurbishment and is anticipated to
be operational by mid-September. The rigs are active in the Barnett
Shale area of North Texas. Six of the seven drilling rigs are mechanical,
with one being a diesel electric rig, and range from 400 to 1,700 horsepower.
At the close of today’s portion of the acquisition, Unit’s
rig fleet totaled 110 drilling rigs.
Unit Corporation is a Tulsa-based, publicly held
energy company engaged through its subsidiaries in oil and gas exploration,
production, contract drilling and natural gas gathering and processing.
Unit’s Common Stock is listed on the New York Stock Exchange under
the symbol UNT. For more information about Unit Corporation, visit its
website at http://www.unitcorp.com.
This news release contains forward-looking statements within the meaning
of the Securities Litigation Reform Act that involve risks and uncertainties,
including the risk this acquisition may not close, that the anticipated
impact on annual earnings may not be met, the intended operating location
of the recently acquired drilling rigs, development, operational, implementation
and opportunity risks, and other factors described from time to time
in the company’s publicly available SEC reports, which could cause
actual results to differ materially from those expected.
