Unit Corp (UNT) has 38,000 net acres in the Texas and Oklahoma that is prospective for the Granite Wash.
In 2010, Unit Corp drilled and completed seven wells into the Granite Wash. Unit Corporation is using the following assumptions on wells in the Granite Wash:
- Four thousand foot laterals, and eleven hydraulic fracturing stages.
- Well costs to average $4 million.
- Rate of return at 83%.
Unit Corp estimates that wells in the Granite Wash will have average reserves of 3.3 billion cubic feet of natural gas, 50,000 barrels of oil and 412,000 barrels of natural gas liquids. In 2011, Unit Corp will drill 22 operated wells at a cost of $82 million.