Unit acquiring Serdrilco and its subsidiary, Service Drilling Southwest

By OGJ editors
HOUSTON, Nov. 21 -- Unit Corp., Tulsa, agreed to acquire the privately held Serdrilco Inc., Tulsa, and its subsidiary, Service Drilling Southwest LLC, a land drilling company in Borger, Tex., for $35 million in cash.

The agreement includes an earn-out provision allowing the sellers to obtain 50% of the cash flow in excess of $10 million for each of the next 3 years. The acquisition includes 12 rigs, a 12-truck moving fleet, along with inventory and other equipment.

The transaction is expected to close in early December. Serdrilco has operated in the Texas Panhandle for more than 50 years. All 12 of the rigs currently are under contract.