Unit Corporation (NYSE: UNT) announced today that its wholly owned
subsidiary, Unit Petroleum Company (“Unit Petroleum”), has entered into
two separate agreements to sell certain non-core oil and natural gas
assets for $268.0 million, subject to customary pre-closing and
post-closing adjustments. Unit Petroleum has entered into an agreement
with QEP Energy, a wholly owned subsidiary of QEP Resources, Inc. (NYSE:
QEP), to sell its interest in certain of its Bakken properties as part
of a transaction that QEP recently announced it is acquiring in North
Dakota’s Williston Basin. In the other transaction, Unit Petroleum has
entered into an agreement with an unaffiliated buyer to sell certain oil
and natural gas assets located in Brazos and Madison counties of Texas,
including Buda and Woodbine production and associated acreage.
The effective date for both transactions is July 1, 2012, and both are
anticipated to close in September 2012. Second quarter 2012 average
production for the combined properties being sold was approximately
1,200 net barrels of oil equivalent per day.
“We are pleased to announce these strategic divestitures for Unit,”
commented Larry D. Pinkston, Unit’s President and Chief Executive
Officer. “This is an important step that will create additional
liquidity for future acquisitions and development in our core areas.
These transactions are part of non-core divestitures that Unit has been
pursuing.”
Unit Corporation is a Tulsa-based, publicly held energy company engaged
through its subsidiaries in oil and natural 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 private Securities Litigation Reform Act. All statements, other
than statements of historical facts, included in this release that
address activities, events or developments that the Company expects or
anticipates will or may occur in the future are forward-looking
statements. A number of risks and uncertainties could cause actual
results to differ materially from these statements, including the
possibility that the ultimate quantity and value of the estimated oil
and natural gas reserves associated with the divestiture actually differ
from those contained in this release, the estimates used in the
valuation of the divestiture, including prices used in calculating
reserve values, may vary significantly from actual results, the current
productive capabilities of the oil and natural gas wells included in the
divestiture varies from that disclosed, and that the divestiture
described in this release may not close. In addition, forward-looking
statements also include the prospective capabilities of the reserves
associated with the Company’s inventory of future drilling sites,
anticipated oil and natural gas prices, the number of wells to be
drilled by the Company’s oil and natural gas segment, development,
operational, implementation and opportunity risks, possibility of future
growth opportunities, and other factors described from time to time in
the Company’s publicly available SEC reports. The Company assumes no
obligation to update publicly such forward-looking statements, whether
as a result of new information, future events or otherwise.
Unit Corporation
David T. Merrill, 918-493-7700
Chief
Financial Officer & Treasurer
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