Unit Corporation reported its initial 2011 capital expenditures budget, 2010 total proved oil and natural gas reserves, as well as certain operational updates for each of Unit's three business segments. This information is unaudited and preliminary.

2011 Capital Expenditure Budget The 2011 capital expenditures budget for all of Unit's business segments is $605 milion, an increase of 16% over estimated 2010 capital expenditures, excluding acquisitions. Of this amount, $415 milion is budgeted for its oil and natural gas segment, which includes $357 milion for driling and completion activities, an 11 % increase over estimated 2010 capital expenditures, $143 million for its contract drilling segment, a 20% increase over estimated 2010 capital expenditures, and $47 milion for its mid-stream segment, a 58% increase over estimated 2010 capital expenditures.

Unit’s 2011 capital expenditures budget is based on prices for oil and natural gas averaging $82.00 per barrel and $4.60 per thousand cubic feet (Mcf) for the year. This budget is subject to adjustment for various reasons including changes in commodity prices and industry conditions. Funding for the 2011 capital expenditures budget is anticipated to be mainly from internally generated cash flow and to a lesser extent from borrowings under the company’s bank credit facility.

Oil and Natural Gas Segment Information For 2010, this segment achieved the following results: • Year end proved reserves of 622.2 billon cubic feet equivalents (Bcfe). • Oil and natural gas production of 59.2 Bcfe. • Replaced 176% of its 2010 production, with 158% through the dril bit.

2010 Total Proved Oil and Natural Gas Reserves Total proved oil and natural gas reserves at December 31, 2010 were 622.2 Bcfe of natural gas, consisting of 17.5 millon barrels (MMbls) of oil, 16.1 MMbls of natural gas liquids (NGLs) and 420.5 Bcf of natural gas. This represents an 8% increase over 2009 year-end total proved reserves. Between 2010 and 2009, Unit's oil and NGLs reserves increased 50% and 10%, respectively, while its natural gas reserves were essentially unchanged. The change in the make up of Unit's reserves at December 31, 2010 is the direct result ofthe strategy implemented by Unit at the beginning of 2009 to focus on oil or NGLs rich prospects. Eighty percent of Unit's proved oil and natural gas reserves are "proved developed", with the remaining 20% comprising "proved undeveloped" reserves.

The estimated future net cash flow from Unit's December 31, 2010 total proved oil and natural gas reserves, before income taxes, is $2.4 bilion. The present value of those reserves (before income taxes and discounted at 10% (PV-I0)) is about $1.3 bilion. These value estimates were made using the 12-month unweighted arithmetic average of the first day of the month price for the periods January 1,2010 through December 31, 2010. The resulting prices used (unescalated) were $79.43 per barel of oil, $49.35 per barrel of NGLs, and $4.38 per Mcf of natural gas, adjusted for price differentials, for the estimated life of the respective properties. PV -lOis a non-GAAP financial measure.

Preliminary 2010 Production and Wells Driled Production during the fourh quarer of2010 was 519,000 barrels of oil, 406,000 barels of NGLs and 10.6 Bcf of natural gas, or 16.2 Bcfe, an increase of 9% and 13% over the third quarter of2010 and the fourth quarer of2009, respectively. Total production for 2010 was 59.2 Bcfe, a decrease of3% from the 60.7 Bcfe produced in 2009.

During 2010 Unit paricipated in the driling of 167 wells compared to 95 wells in 2009, an increase of 76%.

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