Unit Corp. Acquires Brighton Energy
Unit Corporation's subsidiary, Unit Petroleum Company, has signed an agreement to acquire Brighton Energy, LLC, a privately owned oil and natural gas company for approximately $67.0 million in cash. The acquisition involves all of Brighton's oil and natural gas assets outside of the southeastern Arkoma Basin and includes approximately 27.0 Bcfe of proved reserves and 5.0 MMcfe per day of current production. The reserves are 78% natural gas and 67% proved developed. The majority of the acquired reserves are located in the Anadarko and Gulf Coast basins of Oklahoma, Texas and Louisiana, with additional reserves in Arkansas, Kansas, Montana, North Dakota and Wyoming. Unit has identified 27 proved undeveloped locations that can be drilled in addition to numerous probable and possible locations. This acquisition is effective August 1, 2006 and is expected to close October 13, 2006, subject to certain conditions contained in the definitive agreements.
Unit also announced today that its wholly owned subsidiary, Superior Pipeline Company, LLC, closed its acquisition of Berkshire Energy LLC., a private company for an adjusted purchase price of $21.7 million. The principal assets of this company are all located in an established but highly active field in central Oklahoma and consist of a natural gas processing plant, a natural gas gathering system with 15 miles of pipeline, three field compressors and two plant compressors. The plant's capacity is 15,000 Mcf per day and the current average system inlet volume is 7,000 Mcf per day.
Larry Pinkston, President and Chief Executive Officer, said, "Both of these acquisitions fit in our core areas and have substantial upside potential. We are pleased that Unit has been able to enter into these transactions as part of our continuing efforts to ensure the future growth of the company."
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