Unit Corporation Closes Acquisition of Strata Drilling

Unit Corporation's subsidiary, Unit Drilling Company, has closed an acquisition to purchase a subsidiary of Strata Drilling LLC for $10.5 million in cash. Through this acquisition, Unit Drilling Company will acquire two drilling rigs, its 102nd and 103rd rigs, as well as spare parts, inventory, drill pipe, and other major rig components.

The two existing rigs are 1,500 horsepower, diesel electric rigs with the capacity to drill 12,000 to 20,000 feet. One rig is currently operating under contract and the other rig will require approximately $2 million in expenditures to complete. The latter rig should be fully operational within 90 days. Currently, Unit has all 100 of its drilling rigs operating under contract. Its 101st rig, previously under construction, is complete and will be operating under contract next week. Unit also plans to initiate construction of its 104th rig, a 1,500 horsepower diesel electric rig. Both of the two rigs acquired in our recent acquisition and our 104th rig will be added to our 19-rig Rocky Mountain Division.

Mr. Larry Pinkston, Unit's President and Chief Operating Officer, said, "This acquisition will complement our current drilling rig fleet and will help to meet our customers' growing demand for drilling rigs."