Unit Corp. divests 8 land rigs for $6.1MM

In January and February 2010, the company’s contract drilling segment entered into contracts to sell eight of its idle mechanical drilling rigs to an unaffiliated third party. These land rigs ranged in horse power from 800 to 1,000.

The closing on one of these drilling rigs occurred on February 1, 2010. Five more are scheduled to close during the first quarter of 2010 with the last transaction for the remaining two rigs anticipated to close during the second quarter of 2010. Proceeds from the sale of all the drilling rigs will be $23.9 million resulting in an estimated gain of $6.1 million. On completion of these transactions, this segment will have 122 drilling rigs in its fleet.

Larry Pinkston, President and Chief Executive Officer of Unit Corporation, said: “The proceeds from sale of the eight idle mechanical drilling rigs will be used in our contract drilling segment to accelerate its 2010 plans to refurbish and upgrade more rigs in the fleet targeted toward horizontal drilling activity. The upgrades to the rigs will result in performance improvements and additional customer opportunities.”

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