Unit Corporation Closes Two Recent Acquisitions

Unit Corporation's subsidiary, Unit Drilling Company, has completed the acquisition of Sauer Drilling Company, a Casper- based drilling company and a wholly-owned subsidiary of Tom Brown, Inc. At closing, Unit paid $34.7 million in cash. The acquisition includes 9 drilling rigs, a fleet of trucks, and an equipment and repair yard with associated inventory, located in Casper, Wyoming.

Unit Corporation has also completed its acquisition of the 60% of Superior Pipe Line Company LLC that it did not already own for $19.8 million. Superior Pipeline is a mid-stream company engaged primarily in the gathering, processing and treating of natural gas. The company owns one natural gas treatment plant, two processing plants, 12 active gathering systems and 375 miles of pipeline. Cash flow (net income plus depreciation) for the company was $4.5 million in 2003. Superior operates in western Oklahoma and the Texas Panhandle and has been in business for 8 years.