Unit Petroleum Company is a wholly owned subsidiary of Unit Corporation. Unit Petroleum was created in 1979 with an initial reserve base of 2 Bcfe. At December 31, 2007, Unit owns 514.6 Bcfe of reserves, primarily in the Anadarko and Arkoma Basins, and operates or owns an interest in more than 7,400 wells. For the last 24 years, Unit Petroleum has replaced at least 150% of its production, steadily growing its reserve base. Unit's reserves are 82% natural gas and 78% proved developed. The Company's strategy is to drill low-risk field extension or development wells on internally generated prospects. Unit has an inventory of more than 1,200 drilling locations representing 687 Bcfe of unrisked reserves. As with its drilling rig fleet, Unit focuses on natural gas projects, which it believes provide the greatest opportunity for stable growth.