Unit Corporation (UNT) released an operational update on its oil and gas activity in the Granite Wash play in the Texas Panhandle during 2011 and fourth quarter of 2011.
- Estimated ultimate recovery (EUR) of a Granite Wash horizontal well is 4.6 Bcfe, with the production composed of 13% crude oil, 37% natural gas liquids and 50% natural gas.
- Average cost to drill and complete as well is $5.5 million.
- Thirty day average production rate on the company’s last 16 wells was 6.8 million cubic feet of natural gas equivalents per day.
- Unit Corporation targeted six different Granite Wash plays, with 44% of the wells drilled to the Granite Wash B.
- Net production in the fourth quarter of 2011 averaged 50.5 million cubic feet of natural gas equivalents per day, composed of 1,136 barrels of oil, 3,065 barrels of natural gas liquids and 24.8 million cubic feet of natural gas per day.
- Fourth quarter production growth was 2% sequentially and 59% year over year.
Unit Corporation plans to operate from three to four rigs in 2012 and drill 20 operated Granite Wash wells at an approximate net cost of $90 million.