Unit Sells Bakken Assets

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
228MM
Description

Sale of 4,756 net acres in the Bakken for net proceeds of $228 million.

Unit Petroleum Co., a wholly-owned subsidiary of Unit Corp. (NYSE: UNT), has closed on its agreement to sell 4,756 net acres in the Bakken to a subsidiary of QEP Resources Inc. (NYSE: QEP). Net proceeds at closing were $228 million.

As of the effective date of July 1, 2012, the estimated proved reserves of the divested properties were 5.7 million barrels of oil equivalent (BOE), while the second quarter average daily production for these properties was 1,044 BOE per day. The properties total 4,756 net acres, representing approximately 35% of Unit Petroleum’s total acreage in the Bakken play.

“This is a strategic divestiture of certain of our non-core properties,” commented Larry D. Pinkston, Unit’s president and chief executive. “The proceeds from this sale of properties will be applied against bank debt, enhancing our overall liquidity for future growth opportunities.”

QEP’s purchase of the Williston Basin assets is one of several announced by QEP Resources in August which collectively increase its holdings in the region to 118,000 net acres.

Unit Corp. is an upstream oil and gas company based in Tulsa, Okla. QEP Resources Inc. is an upstream oil and gas company based in Denver, Colo.