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January 21, 2022

Unit Corp to consider selling its oil and gas assets in the US

The natural gas producer has appointed an investment bank for the sale of the assets.

US-based Unit Corporation is considering divesting its oil and gas producing assets, in the Anadarko and Gulf Coast basins, for approximately $1bn, reported Reuters.

The natural gas producer has appointed an investment bank for the sale, for which potential bids are due in March 2022.

Unit Corporation has also reached out to undisclosed firms that are interested in buying the upstream subsidiary Unit Petroleum, sources told the news agency.

The sources, however, said that a sale agreement had not been signed, and the firm could withdraw its divestment plan.

The assets considered for the sale include approximately 270,000 net acres in the Anadarko basin of Oklahoma and Texas, as well as nearly 24,000 net acres in the US Gulf Coast, according to documents seen by the news agency.

It is estimated that the assets would have a total output of 136 million cubic feet per day of equivalent gas in April 2022.

The potential transaction, however, excludes Unit’s natural gas gathering and contract drilling subsidiaries.

The move forms part of the company’s efforts to capitalise on rising crude oil and natural gas prices.

Unit Corporation, through its subsidiaries, is engaged in the production of oil and natural gas, and the gathering and processing of natural gas.

In December last year, Unit reported a 3.58% decrease in oil and gas production in August 2021, compared to the previous month.

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