Unit's wholly-owned contract drilling subsidiary, Unit Drilling Company, will receive $60 million, a 20% increase over estimated 2004 capital expenditures, excluding acquisitions. Of this, $17 million will be budgeted for drill pipe and $43 million will be used primarily for rig maintenance and additions.
Unit Petroleum Company, Unit's wholly-owned exploration and production subsidiary, will receive $125 million, a 20% increase over estimated 2004 capital expenditures, excluding acquisitions. Of this amount, $105 million is designated to be spent on drilling, $20 million will go to the purchase of acreage and seismic.
Superior Pipeline Company LLC, Unit's wholly-owned natural gas gathering and processing subsidiary, will receive $20 million. The budget reflects Unit's focus on growing this segment through the construction of new facilities or acquisitions.
Mr. John Nikkel, Unit's Chairman and Chief Executive Officer, said, "During 2005, we plan to drill approximately 220 to 230 wells, up 35% over 2004. Our drilling will be focused primarily in the Anadarko and Arkoma Basins of Oklahoma and Texas and the Permian Basin and Gulf Coast area of Texas. We believe 2005 will see a continuation of the strong demand for our contract drilling services and improving conditions for the energy industry.
Most Popular Articles