Wednesday, February 24, 2010

Unit Corp.: Update

Unit Corp. is a combined driller/producer.  Unit isn't a big Haynesville player from a production perspective, but the company does have some leases in east Texas totaling about 36,200 gross acres, with about16,200 in Shelby Co. and 20,000 in Harrison Co. Unit's 2010 capital budget calls for spending $31 million to participate in five horizontal wells and two vertical wells, as shown on the map below.


Since Unit is a driller as well as a producer, it is interesting to look over the company's rig utilization numbers.  In 2008, average rig utilization was around 79.5%.  As one would expect, utilization cratered in 2009 to an average of 29.5%.  Activity bottomed in the second quarter (24%) and had picked up to 28% in the fourth quarter.

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