news UNIT CORPORATION
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1000 Kensington Tower, 7130 South Lewis Avenue, Tulsa, Oklahoma 74136
Telephone 918 493-7700, Fax 918 493-7714
Contact: Larry D. Pinkston
President, Treasurer
and Chief Financial Officer
(918) 493-7700
For Immediate Release...
November 21, 2003
UNIT CORPORATION ANNOUNCES AGREEMENT
TO PURCHASE SERVICE DRILLING COMPANY
Tulsa, Oklahoma . . . Unit Corporation (NYSE - UNT) announced today that it
has signed an agreement to acquire Serdrilco Incorporated and its subsidiary,
Service Drilling Southwest LLC, a U.S. land drilling company located in Borger,
Texas, for $35,000,000 in cash and an earn-out provision allowing the sellers to
obtain one-half of the cash flow in excess of $10 million for each of the next
three years. The acquisition includes 12 mechanical rigs, a 12-truck moving
fleet, along with inventory and other equipment. The transaction is expected to
close on or about December 8, 2003.
Serdrilco, a private, Tulsa-based drilling company, has been operating in
the Anadarko Basin in the Texas Panhandle for more than 50 years. All 12 of the
rigs are currently under contract. The rigs range from 650 horsepower to 1,000
horsepower with depth capacities rated from 6,500 feet to 18,000 feet. In
addition to the rigs, Unit will acquire a fleet of 12 trucks that enable the
efficient movement of rigs to new drilling locations and a district office and
equipment yard in and near Borger, Texas.
John G. Nikkel, Chairman and Chief Executive Officer of Unit Corporation
said, "These assets complement our existing operations and expands a current
market area for Unit. Service Drilling Company is a respected drilling
contractor in the Texas Panhandle with an established client base, an efficient
operation and experienced crews. Given the declining inventory of rigs available
for acquisition, we are pleased to be adding these assets to our fleet. Along
with an additional rig that was built and recently placed into service, our rig
fleet will total 88 land drilling rigs at the close of this acquisition."
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Unit Corporation is a Tulsa-based, publicly held energy company engaged
through its subsidiaries in oil and gas exploration, production and contract
drilling. Unit's Common Stock is listed on the New York Stock Exchange under the
symbol UNT. For more information about Unit Corporation, visit our website at
http://www.unitcorp.com.
This news release contains forward-looking statements within the meaning of
the Securities Litigation Reform Act that involve risks and uncertainties,
including the possibility that the transaction discussed in this release may not
close, future rig utilization and dayrates, the number of wells to be drilled by
the company, development, operational, implementation and opportunity risks, and
other factors described from time to time in the company's publicly available
SEC reports, which could cause actual results to differ materially from those
expected.