Unit acquires Serdrilco for $35 million

Monday, December 8th 2003, 12:00 am
By: News On 6

(Tulsa-AP) -- Unit Corporation announced its acquisition Monday of Tulsa-based Serdrilco Incorporated.

The $35-million cash deal gives Unit a dozen more land drilling rigs.

The acquisition of Serdrilco and its Borger, Texas-based subsidiary, Service Drilling Southwest, brings Unit's rig fleet to 88, Most of them are operating under contract.

The terms of the deal include an earn-out provision that allows Serdrilco to obtain one-half of the cash flow in excess of $10-million for each of the next three years.

Serdrilco, a private drilling company, has operated in the Anadarko Basin in the Texas Panhandle for more than 50 years.

Unit, a publicly held energy company, also is based in Tulsa.