Unit closes acquisition of PetroCorp

Monday, February 2nd 2004, 12:00 am
By: News On 6

TULSA, Okla. (AP) _ Unit Corp. has closed its $182 million cash purchase of independent oil and gas producer PetroCorp Inc., the energy company said Monday.

Tulsa-based Unit adds PetroCorp's 56.7 billion cubic feet of natural gas equivalent reserves in Oklahoma, Texas, the Gulf of Mexico and the Rocky Mountains.

Unit, primarily a driller of wells for other producers, will now have 341.7 billion cubic feet of gas equivalent in reserve. The combined company will have assets of $738.9 million, the companies have said.

``The acquisition will help Unit continue its record of increasing oil and gas reserves and will help supply a basis for increased drilling in the future,'' said John G. Nikkel, Unit chief executive officer.

The $182 million purchase price, or $14.34 per share, represents a 6 percent premium over Tulsa-based PetroCorp's $171.4 million market value based on its last traded share price of $13.51. The company had 12.7 million outstanding shares on the American Stock Exchange.

When the deal was originally announced in July, Unit was to pay PetroCorp shareholders 2 million Unit shares with the difference in cash. But the acquisition was closed entirely with cash, said Larry Pinkston, Unit president, treasurer and chief financial officer.