Unit Corp (UNT) updated investors on its 2010 exploration and development activity of the Granite Wash formation in the Texas and Oklahoma panhandle area. The company has 38,000 net acres prospective for the various Granite Wash formations on its acreage.
Unit Corp drilled a total of 17 operated wells in 2010 on its acreage in Texas, composed of 12 horizontal wells and 5 vertical wells. The company also participated in 10 non operated wells in Texas and Oklahoma.
Unit Corp said that the average daily peak rate for the 2010 Granite Wash wells was approximately 8 million cubic feet equivalent per day, with 50% of the production composed of liquids. The average cost for a Granite Wash well was $5.1 million.
In 2011, Unit Corp plans to operate between three and four rigs in the Granite Wash and drill 22 operated wells at a total cost of $82 million. The company will participate in 16 non operated wells at a cost of $14 million.