Unit Corp., Tulsa, Okla., (NYSE: UNT) reports its 2009 operations in its Granite Wash play assets in the Texas Panhandle and western Oklahoma.

During 2009, the company drilled and operated 13 vertical wells and one horizontal well in the Texas Panhandle. The vertical wells had an average working interest of 66% and estimated gross reserves of 1.8 billion cubic feet equivalent per well at an average gross completed well cost of $2.3 million. Unit has a 70% working interest in the horizontal well which averaged 4.2 million cubic feet of gas, 500 barrels of oil and 600 barrels of gas liquids per day, or 10.8 million cubic feet equivalent per day, during the initial 30-day flow period beginning in late December.

The well was drilled with a 4,000’ lateral that was fracture stimulated in 11 stages utilizing approximately 48,000 barrels of water and 1 million pounds of sand. Estimated ultimate gross reserves are 6- to 8 billion cubic feet equivalent at an approximate gross completed well cost of $3.8 million. We drilled our first horizontal Granite Wash well in late 2008 that had a 2,400-foot lateral and was fracture stimulated in six stages utilizing 16,000 barrels of water and 500,000 pounds of sand. The highest 30-day flow rate achieved from the well was 5.5 million cubic feet equivalent per day and the well is currently producing 1.8 million cubic feet equivalent per day.

For 2010, the company plans to participate in approximately nine gross (four net) vertical wells and 31 gross (14 net) horizontal wells at a total net cost to the company of approximately $70 million. The Segno Wilcox play, in Polk, Tyler and Hardin counties, Texas, continues to grow. During 2009, we completed eight wells with an average working interest of 86% at a 75% success rate. The average gross completed well cost was $2.7 million per well with estimated gross reserves of approximately 3 billion cubic equivalent per well.

The Wing #3 (100% working interest) was drilled in the fourth quarter and has been selling an average of 5.5 million cubic feet per day of natural gas and 125 barrels of oil per day, or 6.3 million cubic feet equivalent per day, during a 31 day period beginning in late December. We estimate reserves on this well between 15- to 20 billion cubic feet equivalent.

Unit expanded its Segno prospect area to the south by entering into a joint exploration agreement with an undisclosed third party for the use of a proprietary 3-D seismic survey covering approximately 151 square miles. For 2010, Unit plans to drill 23 gross (17.5 net) wells at an approximate net cost of $48 million.

In the Haynesville shale play of East Texas, Unit owns 16,204 gross acres and 11,302 net acres in Shelby County and 20,000 gross and 8,700 net acres in Harrison County. During 2010, the company plans to participate in five horizontal wells and two vertical wells at an approximate total net cost to the company of $31 million.

In the Marcellus shale play, Unit owns 197,000 gross and 49,500 net acres, mainly in Somerset County, Pennsylvania. During 2009, Unit participated in three vertical wells and two horizontal wells at a total net cost of $7.3 million. One horizontal well is in the early stages of flowing back after fracture stimulation and the second horizontal well is scheduled to be fracture stimulated in the second quarter of 2010.

Unit chief executive and president Larry Pinkston says, “We reduced our drilling activity substantially during the first half of the year while commodity prices were decreasing. During the second half of the year, this segment began to increase its drilling activity as the cost to drill wells became more economical. We recently announced our total proved reserves at Dec. 31, 2009 were 577 billion cubic feet equivalent of natural gas, a 1% increase over our 2008 total proved reserves.”

Unit has oil and gas operations in Oklahoma and Texas areas of the Anadarko and Arkoma Basins, the North Texas Barnett shale, the Texas and Louisiana Gulf Coast, East Texas and the Rockies region.