Untitled Document
Untitled Document

Unit Corp deems 3 of 4 intervals economic in Granite Wash

Tulsa, Okla.-based Unit Corp. (NYSE:UNT) is logging new developments in the Texas Panhandle portion of the Granite Wash. With reserve estimates of its 2009 Frank Shaller 7H horizontal well standing at 6.0 to 8.0 Bcfe and four wells drilled in the first quarter of 2010 (three vertical and one horizontal), the company is testing the area for further drilling.

The company has identified seven different sand intervals in the Granite Wash that might be economically to develop and has tested four of these intervals to date. Results from three of the four indicate that they are economic to develop at current prices.

The other, a well with a first sales rate of approximately 1,800 Mcfe per day with reserves estimated between 1.5 to 2.0 Bcfe on March 1, was deemed uneconomic.

Related spending
Earlier in the year, the company set its initial 2010 capital expenditures budget at $467 million, an increase of 57% over estimated 2009 capital expenditures. Of this amount, $365 million is budgeted for its oil and natural gas segment.

When the budget was set in January, Larry Pinkston, president and CEO noted that the increased drilling activity would be concentrated “in the areas that provide the highest economic returns, which currently are concentrated in our Granite Wash and Segno plays.”

The Frank Shaller 7H is a horizontal Granite Wash well drilled in late 2009 that continues to produce at a rate of approximately 5,800 Mcfe per day after four months online. This well has estimated reserves of 6.0 to 8.0 Bcfe.

To help accommodate the increase Granite Wash drilling activity for the company and other operators, the company plans a second processing facility in the area.

Unit Corp. is engaged, through its subsidiaries, in the exploration for and production of oil and natural gas, the acquisition of producing oil and natural gas properties, the contract drilling of onshore oil and natural gas wells, and the gathering and processing of natural gas. Operations are principally located in the Mid-Continent region, including the Anadarko, Arkoma, Permian, Rocky Mountains and Gulf Coast Basins.

Related Articles

KMP to expand carbon-dioxide infrastructure

05/08/2014

Kinder Morgan Energy Partners LP is set to invest $671 million to grow its carbon-dioxide infrastructure in southwestern Colorado and New Mexico.

OXY to spin off California assets into separate company

02/14/2014

Occidental Petroleum Corp.’s (NYSE:OXY) board of directors has authorized the separation of Occidental’s California assets into an independent and separately traded company.

D-J Basin experts

02/01/2014

Synergy setting the standard for operating efficiency

TSX E&P spending up $3.5B

01/01/2014

Canadian oil and gas company CAPEX up from last year, but expect a quiet Q4

TGP awards backhaul capacity to serve Utica, Marcellus shales

12/18/2013 Tennessee Gas Pipeline Co. LLC (TGP), a subsidiary of Kinder Morgan Energy Partners LP, has completed a successful open season for incremental, north to south natural gas transportation capacity on...

More Oil & Gas Financial Articles

KMP to expand carbon-dioxide infrastructure

Thu, May 8, 2014

Kinder Morgan Energy Partners LP is set to invest $671 million to grow its carbon-dioxide infrastructure in southwestern Colorado and New Mexico.

OXY to spin off California assets into separate company

Fri, Feb 14, 2014

Occidental Petroleum Corp.’s (NYSE:OXY) board of directors has authorized the separation of Occidental’s California assets into an independent and separately traded company.

D-J Basin experts

Sat, Feb 1, 2014

Synergy setting the standard for operating efficiency

TSX E&P spending up $3.5B

Wed, Jan 1, 2014

Canadian oil and gas company CAPEX up from last year, but expect a quiet Q4

TGP awards backhaul capacity to serve Utica, Marcellus shales

Wed, Dec 18, 2013

Tennessee Gas Pipeline Co. LLC (TGP), a subsidiary of Kinder Morgan Energy Partners LP, has completed a successful open season for incremental, north to south natural gas transportation capacity on the TGP system totaling 500,000 dekatherms per day.

Most Popular

Oil & Gas Jobs

Search More Job Listings >>
Subscribe to OGFJ