2010-07-21-2010-07-21-2010-07-21

Acquired 45,000 net acres & 11 producing wells, adding to Marmaton oil position to more than 56,000 undeveloped net acres.

Unit Petroleum Corp., an E&P segment of Tulsa, Okla.-based Unit Corp. (NYSE: UNT), has acquired certain oil and gas properties in Oklahoma from an undisclosed, privately held company for approximately $75 million, adding to its existing position in the Marmaton horizontal oil play to more than 56,000 undeveloped net acres.

The assets comprise approximately 45,000 net acres, with 11 producing oil wells, primarily in Beaver County. Proved developed producing (PDP) net reserves are approximately 900,000 barrels of oil equivalent, consisting of 600,000 barrels of oil, 200,000 barrels of natural gas liquids (NGLs), and 700 million cubic feet of gas. Net production in April averaged approximately 850 barrels of oil and 1 million cubic feet per day.

Upside includes approximately 300 potential well locations, with expected average reserves of 120,000 barrels of oil equivalent per well. The company anticipates operating up to three drilling rigs in the play.

Unit president and chief executive Larry Pinkston says, "This acquisition complements the presence that we already have in the Anadarko Basin, one of our core areas of operations. Projected average completed well costs for wells in this play are approximately $2 million."