Exhibit 99.1

UNIT CORPORATION

Estimated

Future Reserves

Attributable to Certain

Leasehold and Royalty Interests

SEC Parameters

As of

December 31, 2009

/s/ Fred P. Richoux

Fred P. Richoux, P.E.

Executive Vice President

RYDER SCOTT COMPANY, L.P.

TBPE Firm Registration No. F-1580



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January 20, 2010

Unit Corporation

1000 Kensington Tower

7130 South Lewis

Tulsa, Oklahoma 74170-2500

Gentlemen:

At the
request of Unit Corporation (Unit), Ryder Scott Company (Ryder Scott) has conducted a reserves audit of the estimates of the proved reserves as prepared by Units engineering and geological staff based on the definitions and disclosure
guidelines contained in the United States Securities and Exchange Commission Title 17, Code of Federal Regulations, Modernization of Oil and Gas Reporting, Final Rule released January 14, 2009 in the Federal Register (SEC regulations).

The reserves audit conducted by Ryder Scott was completed on January 15, 2010. This third party letter report presents
the results of our reserves audit based on the guidelines set forth under Section 229.1202(a)(7) and (8) of the SEC regulations. The estimated reserves shown herein represent Units estimated net reserves attributable to the leasehold
and royalty interests in certain properties owned by Unit and the portion of those reserves reviewed by Ryder Scott, as of December 31, 2009.

The properties reviewed by Ryder Scott incorporate 622 reserve determinations and are located in the states of Arkansas, Colorado, Kansas, Louisiana, Mississippi, Montana, North Dakota, New Mexico,
Oklahoma, Texas, and Wyoming.

The proved net reserves attributable to the properties that we reviewed account for 81 percent
of the total proved net liquid hydrocarbon reserves and 65 percent of the total proved net gas reserves based on estimates prepared by Unit as of December 31, 2009. The properties that we reviewed represent 85 percent of the total proved
discounted future net income based on the unescalated pricing policy of the SEC as taken from reserve and income projections prepared by Unit as of December 31, 2009.

As prescribed by the Society of Petroleum Engineers in Paragraph 2.2(f) of the Standards Pertaining to the Estimating and Auditing of Oil
and Gas Reserves Information (SPE auditing standards), a reserves audit is defined as the process of reviewing certain of the pertinent facts interpreted and assumptions made that have resulted in an estimate of reserves prepared by others and
the rendering of an opinion about (1) the appropriateness of the methodologies employed; (2) the adequacy and quality of the data relied upon; (3) the depth and thoroughness of the reserves estimation process; (4) the
classification of reserves appropriate to the relevant definitions used; and (5) the reasonableness of the estimated reserve quantities.

Based on our review, including the data, technical processes and interpretations presented by Unit, it is our opinion that the overall procedures and methodologies utilized by Unit in determining the
proved reserves comply with the current SEC regulations and the overall proved reserves for the



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Unit Corporation

January 20, 2010

Page 2



reviewed properties as estimated by Unit are, in the aggregate, reasonable within the established audit tolerance guidelines set forth in the SPE auditing standards. The comparison was based on a
net barrel of oil equivalent (BOE) basis. Natural gas is converted to oil equivalent using a factor of 6,000 cubic feet of natural gas per one barrel of oil equivalent.

The estimated reserves presented in this report are related to hydrocarbon prices. Unit has informed us that in the preparation of their reserve and income projections, as of December 31, 2009, they
used average prices during the 12-month period prior to the ending date of the period covered in this report, determined as unweighted arithmetic averages of the prices in effect on the first-day-of-the-month for each month within such period,
unless prices were defined by contractual arrangements as required by the SEC regulations. Actual future prices may vary significantly from the prices required by SEC regulations; therefore, volumes of reserves actually recovered and the amounts of
income actually received may differ significantly from the estimated quantities presented in this report. The net reserves as estimated by Unit attributable to Units interest in properties that we reviewed and the reserves of properties that
we did not review are summarized as follows:

SEC PARAMETERS

Estimated Net Reserves

Attributable to Certain Properties of

Unit Corporation

As of December 31, 2009





|                                                      |  |           |  |               |  |             |  |           
|----------------------------------------------------- |  | --------- |  | ------------- |  | ----------- |  | ----------
|                                                      |  | Proved   
|                                                      |  | Developed |  |               |  | Total      
|                                                      |  | Producing |  | Non-Producing |  | Undeveloped |  | Proved    
|Net Reserves of Properties Audited by Ryder Scott     |  |           |  |               |  |             |  |           
|Oil/Condensate  Barrels                              |  | 4,999,360 |  | 2,425,580     |  | 1,758,020   |  | 9,182,960 
|Plant Products  Barrels                              |  | 6,915,270 |  | 2,876,390     |  | 2,426,410   |  | 12,218,070
|Gas  MMCF                                            |  | 180,911   |  | 51,468        |  | 40,265      |  | 272,644   
|Net Reserves of Properties Not Audited by Ryder Scott |  |           |  |               |  |             |  |           
|Oil/Condensate  Barrels                              |  | 1,299,960 |  | 458,060       |  | 727,850     |  | 2,485,870 
|Plant Products  Barrels                              |  | 1,174,890 |  | 571,210       |  | 688,600     |  | 2,434,700 
|Gas  MMCF                                            |  | 67,150    |  | 38,688        |  | 40,579      |  | 146,417   
|Total Net Reserves                                    |  |           |  |               |  |             |  |           
|Oil/Condensate  Barrels                              |  | 6,299,320 |  | 2,883,640     |  | 2,485,870   |  | 11,668,830
|Plant Products  Barrels                              |  | 8,090,160 |  | 3,447,600     |  | 3,115,010   |  | 14,652,770
|Gas  MMCF                                            |  | 248,061   |  | 90,156        |  | 80,844      |  | 419,061   

Liquid hydrocarbons
are expressed in standard 42 gallon barrels. All gas volumes are reported on an as-sold basis expressed in millions of cubic feet (MMCF) at the official temperature and pressure bases of the areas in which the gas reserves are located.

Reserves Included in This Report

In our opinion, the proved reserves presented in this report comply with the definitions, guidelines and disclosure requirements as required by the SEC regulations.



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Unit Corporation

January 20, 2010

Page 3

Proved oil and gas reserves are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated
with reasonable certainty to be economically producible from a given date forward. Moreover, estimates of reserves may increase or decrease as a result of future operations, effects of regulation by governmental agencies or geopolitical risks. As a
result, the estimates of oil and gas reserves have an intrinsic uncertainty. The reserves included in this report are therefore estimates only and should not be construed as being exact quantities. They may or may not be actually recovered, and if
recovered, could be more or less than the estimated amounts.

An abridged version of the SEC reserves definitions from
210.4-10(a) entitled Petroleum Reserves Definitions is included as an attachment to this report.

Audit Data, Methodology,
Procedure and Assumptions

The reserves for the properties that we reviewed were estimated by performance methods or
the volumetric method. In general, reserves attributable to producing wells and/or reservoirs were estimated by performance methods such as decline curve analysis and material balance, which utilized extrapolations of historical production and
pressure data available generally through October, 2009 in those cases where such data were considered to be definitive. In certain cases, producing reserves were estimated by the volumetric method where there were inadequate historical performance
data to establish a definitive trend and where the use of production performance data as a basis for the reserve estimates was considered to be inappropriate. Reserves attributable to non-producing and undeveloped reserves included herein were
estimated by the volumetric method, which utilized all pertinent well and seismic data available through December, 2009.

To
estimate economically recoverable oil and gas reserves, we consider many factors and assumptions including, but not limited to, the use of reservoir parameters derived from geological, geophysical and engineering data which cannot be measured
directly, economic criteria based on current costs and SEC pricing requirements, and forecasts of future production rates. Under the SEC regulations 210.4-10(a)(22)(v) and (26), proved reserves must be demonstrated to be economically producible
based on existing economic conditions including the prices and costs at which economic producibility from a reservoir is to be determined as of the effective date of the report. Unit has informed us that they have furnished us all of the accounts,
records, geological and engineering data, and reports and other data required for this investigation. In performing our audit of Units forecast of future production and income, we have relied upon data furnished by Unit with respect to
property interests owned, production and well tests from examined wells, normal direct costs of operating the wells or leases, other costs such as transportation and/or processing fees, ad valorem and production taxes, recompletion and development
costs, abandonment costs after salvage, product prices based on the SEC regulations, geological structural and isochore maps, well logs, core analyses, and pressure measurements. Ryder Scott reviewed such factual data for its reasonableness;
however, we have not conducted an independent verification of the data supplied by Unit.

As previously stated, the
hydrocarbon prices used by Unit are based on the average prices during the 12-month period prior to the ending date of the period covered in this report, determined as the unweighted arithmetic averages of the prices in effect on the
first-day-of-the-month for each month within such period, unless prices were defined by contractual arrangements. For hydrocarbon products sold under contract, the contract prices, including fixed and determinable escalations exclusive of inflation
adjustments, were used until expiration of the contract. Upon contract expiration, the prices were adjusted to the 12-month unweighted arithmetic average as previously described.



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Unit Corporation

January 20, 2010

Page 4

The effects of derivative instruments designated as price hedges of oil and gas quantities are not reflected in Units individual
property evaluations.

While it may reasonably be anticipated that the future prices received for the sale of production and
the operating costs and other costs relating to such production may also increase or decrease from existing levels, such changes were, in accordance with rules adopted by the SEC, omitted from consideration in making this evaluation.

Gas imbalances, if any, were not taken into account in the gas reserve estimates reviewed. In certain cases, the gas volumes included herein
include gas consumed in operations as reserves. In those cases, the effective price was reduced such that the fuel use had no value.

Operating costs used by Unit are based on the operating expense reports of Unit and include only those costs directly applicable to the leases or wells. The operating costs include a portion of general and administrative costs allocated
directly to the leases and wells. When applicable for operated properties, the operating costs include an appropriate level of corporate general administrative and overhead costs. The operating costs for non-operated properties include the COPAS
overhead costs that are allocated directly to the leases and wells under terms of operating agreements. No deduction was made for loan repayments, interest expenses, or exploration and development prepayments that were not charged directly to the
leases or wells.

Development costs used by Unit are based on authorizations for expenditure for the proposed work or actual
costs for similar projects. Units estimates of zero abandonment costs after salvage value for onshore properties were used in this report. Ryder Scott has not performed a detailed study of the abandonment costs or the salvage value and makes
no warranty for Units estimate.

Because of the direct relationship between volumes of proved undeveloped reserves and
development plans, we include in the proved undeveloped category only reserves assigned to undeveloped locations that we have been assured will definitely be drilled. Unit has assured us of their intent and ability to proceed with the development
activities included in this report, and that they are not aware of any legal, regulatory or political obstacles that would significantly alter their plans. All of the undeveloped locations included in this report are scheduled to be drilled prior to
January 1, 2015.

Current costs used by Unit were held constant throughout the life of the properties.

Units forecasts of future production rates are based on historical performance from wells now on production or estimated initial
production rates based on test data and other related information for those wells or locations that are not currently producing. Forecasts of future production rates may be more or less than estimated because of changes in market demand or
allowables set by regulatory bodies. Wells or locations that are not currently producing may start producing earlier or later than anticipated in the forecasts prepared by Unit.

Units operations may be subject to various levels of governmental controls and regulations. These controls and regulations may include
matters relating to land tenure, drilling, production practices, environmental protection, marketing and pricing policies, royalties, various taxes and levies including income tax, and are subject to change from time to time. Such changes in
governmental regulations and policies may cause volumes of reserves actually recovered and amounts of income actually received to differ significantly from the estimated quantities.



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Unit Corporation

January 20, 2010

Page 5

The estimates of reserves presented herein were based upon a detailed study of the properties in which Unit owns an interest; however, we
have not made any field examination of the properties. No consideration was given in this report to potential environmental liabilities that may exist, nor were any costs included for potential liability to restore and clean up damages, if any,
caused by past operating practices.

Certain technical personnel of Unit are responsible for the preparation of reserve
estimates on new properties and for the preparation of revised estimates, when necessary, on old properties. These personnel assembled the necessary data and maintained the data and workpapers in an orderly manner. We consulted with these technical
personnel and had access to their workpapers and supporting data in the course of our audit.

The data described herein were
accepted as authentic and sufficient for determining the reserves unless, during the course of our examination, a matter of question came to our attention in which case the data were not accepted until all questions were satisfactorily resolved. Our
audit included such tests and procedures as we considered necessary under the circumstances to render the conclusions set forth herein.

Audit Opinion

In our opinion, Units estimates of future reserves for the reviewed properties were
prepared in accordance with generally accepted petroleum engineering and evaluation principles for the estimation of future reserves as set forth in the Society of Petroleum Engineers Standards Pertaining to the Estimating and Auditing of Oil
and Gas Reserves Information, and we found no bias in the utilization and analysis of data in estimates for these properties.

The overall proved reserves for the reviewed properties as estimated by Unit are, in the aggregate, reasonable within the established audit tolerance guidelines of 10 percent as set forth in the Standards Pertaining to the Estimating and
Auditing of Oil and Gas Reserves Information promulgated by the Society of Petroleum Engineers.

In general, we were in
reasonable agreement with Units estimates of proved reserves for the properties which we reviewed; however, in certain cases there was more than an acceptable variance between Units estimates and our estimates due to a difference in
interpretation of data or due to our having access to data which were not available to Unit when its reserve estimates were prepared. In some of these cases, Unit revised its estimates to conform more closely to our estimates to ensure that in the
aggregate we were in reasonable agreement. As a consequence, it is our opinion that the data presented herein for the properties that we reviewed fairly reflect the estimated net reserves owned by Unit.

Other Properties

Other properties, as used herein, are those properties of Unit that we did not review. The proved net reserves attributable to the other properties account for 19 percent of the total proved net liquid hydrocarbon reserves and 35 percent of
the total proved net gas reserves based on estimates prepared by Unit as of December 31, 2009.

The same technical
personnel of Unit were responsible for the preparation of the reserve estimates for the properties that we reviewed as well as for the properties not reviewed by Ryder Scott.



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Unit Corporation

January 20, 2010

Page 6

Standards of Independence and Professional Qualification

Ryder
Scott is an independent petroleum engineering consulting firm that has been providing petroleum consulting services throughout the world for over seventy years. Ryder Scott is employee-owned and maintains offices in Houston, Texas; Denver, Colorado;
and Calgary, Alberta, Canada. We have over eighty engineers and geoscientists on our permanent staff. By virtue of the size of our firm and the large number of clients for which we provide services, no single client or job represents a material
portion of our annual revenue. We do not serve as officers or directors of any publicly traded oil and gas company and are separate and independent from the operating and investment decision-making process of our clients. This allows us to bring the
highest level of independence and objectivity to each engagement for our services.

Ryder Scott actively participates in
industry related professional societies and organizes an annual public forum focused on the subject of reserves evaluations and SEC regulations. Many of our staff have authored or co-authored technical papers on the subject of reserves related
topics. We encourage our staff to maintain and enhance their professional skills by actively participating in ongoing continuing education.

Ryder Scott requires that staff engineers and geoscientists have received professional accreditation, and are maintaining in good standing, a registered or certified professional engineers license
or a registered or certified professional geoscientists license, or the equivalents thereof, from an appropriate governmental authority or a recognized self-regulating professional organization prior to becoming an officer of the Company.

We are independent petroleum engineers with respect to Unit. Neither we nor any of our employees have any interest in the
subject properties, and neither the employment to do this work nor the compensation is contingent on our estimates of reserves for the properties which were reviewed.

The professional qualifications of the undersigned, the technical person primarily responsible for auditing and approving the reserves information discussed in this report, are included as an attachment
to this letter.

Terms of Usage

This report was prepared for the exclusive use of Unit Corporation and may not be put to other use without our prior written consent for such use. The data and work papers used in the preparation of this
report are available for examination by authorized parties in our offices. Please contact us if we can be of further service.



Very truly yours,RYDER SCOTT COMPANY, L.P. TBPE Firm Registration No. F-1580/s/ Fred P. RichouxFred P. Richoux, P.E. TBPE
License No. 33949 Executive Vice President


FPR/sm



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Professional Qualifications of Primary Technical Person

The conclusions presented in this report are the result of technical analysis conducted by teams of geoscientists and engineers from Ryder Scott Company,
L.P. Mr. Fred P. Richoux was the primary technical person responsible for the estimate of the reserves, future production and income.

Mr. Richoux, an employee of Ryder Scott Company L.P. (Ryder Scott) since 1978, is Ryder Scotts Executive Vice President, serves as Director of Canadian Operations, is a member of the Board of Directors, and is responsible for
coordinating and supervising staff and consulting engineers of the company in ongoing reservoir evaluation studies worldwide. Before joining Ryder Scott, Mr. Richoux served in a number of engineering positions with Phillips Petroleum Company.
For more information regarding Mr. Richouxs geographic and job specific experience, please refer to the Ryder Scott Company website at http://www.ryderscott.com/Experience/Employees.php.

Mr. Richoux earned a Bachelor of Science degree in Electrical Engineering from The University of Louisiana at Lafayette in 1967 and is a registered
Professional Engineer in the State of Texas and in the Province of Alberta. He is also a member of the Society of Petroleum Engineers and the Society of Petroleum Evaluation Engineers.

In addition to gaining experience and competency through prior work experience, the Texas Board of Professional Engineers requires a minimum of fifteen hours of continuing education annually, including at
least one hour in the area of professional ethics, which Mr. Richoux fulfills. As part of his 2009 continuing education hours, Mr. Richoux attended an internally presented 16 hours of formalized training as well as a day-long public forum
and various professional society presentations specifically on the new SEC regulations relating to the definitions and disclosure guidelines contained in the United States Securities and Exchange Commission Title 17, Code of Federal Regulations,
Modernization of Oil and Gas Reporting, Final Rule released January 14, 2009 in the Federal Register. Mr. Richoux attended an additional 9 hours of formalized in-house training as well as 9 hours of formalized external training during 2009
covering such topics as the SPE/WPC/AAPG/SPEE Petroleum Resources Management System, reservoir engineering, geoscience and petroleum economics evaluation methods, procedures and software and ethics for consultants. In addition, Mr. Richoux
served as the technical presenter in a webinar hosted by a major accounting firm relating to the SEC reserve reporting guidelines.

Based on
his educational background, professional training and more than 40 years of practical experience in the estimation and evaluation of petroleum reserves, Mr. Richoux has attained the professional qualifications as a Reserves Estimator and
Reserves Auditor set forth in Article III of the Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information promulgated by the Society of Petroleum Engineers as of February 19, 2007.



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PETROLEUM RESERVES DEFINITIONS

As Adapted From:

RULE 4-10(a) of REGULATION S-X PART 210

UNITED STATES SECURITIES AND EXCHANGE COMMISSION (SEC)

PREAMBLE

On January 14, 2009, the United States Securities and Exchange Commission (the Commission) published the Modernization of Oil and Gas Reporting; Final Rule in the Federal Register of National Archives and
Records Administration (NARA). The Modernization of Oil and Gas Reporting; Final Rule includes revisions and additions to the definition section in Rule 4-10 of Regulation S-X, revisions and additions to the oil and gas reporting
requirements in Regulation S-K, and amends and codifies Industry Guide 2 in Regulation S-K. The Modernization of Oil and Gas Reporting; Final Rule, including all references to Regulation S-X and Regulation S-K, shall be referred to
herein collectively as the SEC Regulations. The SEC Regulations take effect with all filings made with the United States Securities and Exchange Commission as of December 31, 2009, or after January 1, 2010. Reference should be
made to the full text under Title 17, Code of Federal Regulations, Regulation S-X Part 210, Rule 4-10 (a) for the complete definitions, as the following definitions, descriptions and explanations rely wholly or in part on excerpts from the
original document (direct passages excerpted from the aforementioned SEC document are denoted in italics herein).

Reserves
are those quantities of petroleum which are anticipated to be commercially recovered from known accumulations from a given date forward under defined conditions. All reserve estimates involve some degree of uncertainty. The uncertainty depends
chiefly on the amount of reliable geologic and engineering data available at the time of the estimate and the interpretation of these data. The relative degree of uncertainty may be conveyed by placing reserves into one of two principal
classifications, either proved or unproved. Unproved reserves are less certain to be recovered than proved reserves and may be further sub-classified as probable and possible reserves to denote progressively increasing uncertainty in their
recoverability. Under the SEC Regulations as of December 31, 2009, or after January 1, 2010, a company may optionally disclose estimated quantities of probable or possible oil and gas reserves in documents publicly filed with the
Commission. The SEC Regulations continue to prohibit disclosure of estimates of oil and gas resources other than reserves and any estimated values of such resources in any document publicly filed with the Commission unless such information is
required to be disclosed in the document by foreign or state law as noted in §229.102 (5).

Reserves estimates will
generally be revised as additional geologic or engineering data become available or as economic conditions change.

Reserves
may be attributed to either natural energy or improved recovery methods. Improved recovery methods include all methods for supplementing natural energy or altering natural forces in the reservoir to increase ultimate recovery. Examples of such
methods are pressure maintenance, cycling, waterflooding, thermal methods, chemical flooding, and the use of miscible and immiscible displacement fluids. Other improved recovery methods may be developed in the future as petroleum technology
continues to evolve.



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PETROLEUM RESERVES DEFINITIONS

Page 2

RESERVES (SEC DEFINITIONS)

Securities and Exchange Commission Regulation S-X §229.4-10(a) (26) defines reserves as follows:

Reserves.Reserves are estimated remaining quantities of oil and gas and related substances anticipated to be economically
producible, as of a given date, by application of development projects to known accumulations. In addition, there must exist, or there must be a reasonable expectation that there will exist, the legal right to produce or a revenue interest in the
production, installed means of delivering oil and gas or related substances to market, and all permits and financing required to implement the project.

Note to paragraph (a)(26): Reserves should not be assigned to adjacent reservoirs isolated by major, potentially sealing, faults until those reservoirs are penetrated and evaluated as
economically producible. Reserves should not be assigned to areas that are clearly separated from a known accumulation by a non-productive reservoir (i.e., absence of reservoir, structurally low reservoir, or negative test results). Such
areas may contain prospective resources (i.e., potentially recoverable resources from undiscovered accumulations).

PROVED
RESERVES (SEC DEFINITIONS)

Securities and Exchange Commission Regulation S-X §229.4-10(a) (22) defines
proved oil and gas reserves as follows:

Proved oil and gas reserves.Proved oil and gas reserves are those quantities
of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically produciblefrom a given date forward, from known reservoirs, and under existing economic conditions, operating
methods, and government regulationsprior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used
for the estimation. The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it will commence the project within a reasonable time.

(i) The area of the reservoir considered as proved includes:

(A) The area identified by drilling and limited by fluid contacts, if any, and

(B) Adjacent undrilled portions of the reservoir that can, with reasonable certainty, be judged to be continuous with it and to contain
economically producible oil or gas on the basis of available geoscience and engineering data.

(ii) In the absence of
data on fluid contacts, proved quantities in a reservoir are limited by the lowest known hydrocarbons (LKH) as seen in a well penetration unless geoscience, engineering, or performance data and reliable technology establishes a lower contact with
reasonable certainty.

(iii) Where direct observation from well penetrations has defined a highest known oil (HKO)
elevation and the potential exists for an associated gas cap, proved oil reserves may be assigned in the structurally higher portions of the reservoir only if geoscience, engineering, or performance data and reliable technology establish the higher
contact with reasonable certainty.



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RESERVES DEFINITIONS

Page 3

(iv) Reserves which can be produced economically through application
of improved recovery techniques (including, but not limited to, fluid injection) are included in the proved classification when:

(A) Successful testing by a pilot project in an area of the reservoir with properties no more favorable than in the reservoir as a whole, the operation of an installed program in the reservoir or an analogous reservoir, or other evidence
using reliable technology establishes the reasonable certainty of the engineering analysis on which the project or program was based; and

(B) The project has been approved for development by all necessary parties and entities, including governmental entities.

(v) Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined. The price
shall be the average price during the 12-month period prior to the ending date of the period covered by the report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices
are defined by contractual arrangements, excluding escalations based upon future conditions.

[Remainder of this page is
left blank intentionally]



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RESERVES STATUS DEFINITIONS AND GUIDELINES

As Adapted From:

RULE 4-10(a) of REGULATION S-X PART 210

UNITED STATES SECURITIES AND EXCHANGE COMMISSION (SEC)

and

PETROLEUM RESOURCES MANAGEMENT SYSTEM (SPE-PRMS)

Sponsored and Approved
by:

SOCIETY OF PETROLEUM ENGINEERS (SPE),

WORLD PETROLEUM COUNCIL (WPC)

AMERICAN ASSOCIATION
OF PETROLEUM GEOLOGISTS (AAPG)

SOCIETY OF PETROLEUM EVALUATION ENGINEERS (SPEE)

Reserves status categories define the development and producing status of wells and reservoirs.

DEVELOPED RESERVES (SEC DEFINITIONS)

Securities and Exchange Commission Regulation S-X §229.4-10(a) (6) defines developed oil and gas reserves as follows:

Developed oil and gas reserves are reserves of any category that can be expected to be recovered:

(i) Through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively
minor compared to the cost of a new well; and

(ii) Through installed extraction equipment and infrastructure
operational at the time of the reserves estimate if the extraction is by means not involving a well.

Developed Producing (SPE-PRMS
Definitions)

While not a requirement for disclosure under the SEC regulations, developed oil and gas reserves
may be further sub-classified according to the guidance contained in the SPE-PRMS as Producing or Non-Producing.

Developed Producing Reserves

Developed Producing Reserves are expected to be recovered from
completion intervals that are open and producing at the time of the estimate.

Improved recovery reserves are considered
producing only after the improved recovery project is in operation.

Developed Non-Producing

Developed Non-Producing Reserves include shut-in and behind-pipe reserves.



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RESERVES STATUS DEFINITIONS AND GUIDELINES

Page 2

Shut-In

Shut-in Reserves are expected to be recovered from:



| | (1) | completion intervals which are open at the time of the estimate but which have not yet started producing;
| | --- | ---------------------------------------------------------------------------------------------------------



| | (2) | wells which were shut-in for market conditions or pipeline connections; or
| | --- | --------------------------------------------------------------------------



| | (3) | wells not capable of production for mechanical reasons.
| | --- | -------------------------------------------------------

Behind-Pipe

Behind-pipe Reserves are expected to be
recovered from zones in existing wells which will require additional completion work or future re-completion prior to start of production.

In all cases, production can be initiated or restored with relatively low expenditure compared to the cost of drilling a new well.

UNDEVELOPED RESERVES (SEC DEFINITIONS)

Securities and Exchange
Commission Regulation S-X §229.4-10(a) (31) defines undeveloped oil and gas reserves as follows:

Undeveloped oil
and gas reserves are reserves of any category that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion.

(i) Reserves on undrilled acreage shall be limited to those directly offsetting development spacing areas that are reasonably certain of
production when drilled, unless evidence using reliable technology exists that establishes reasonable certainty of economic producibility at greater distances.

(ii) Undrilled locations can be classified as having undeveloped reserves only if a development plan has been adopted indicating that they are scheduled to be drilled within five years, unless the
specific circumstances, justify a longer time.

(iii) Under no circumstances shall estimates for undeveloped reserves be
attributable to any acreage for which an application of fluid injection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual projects in the same reservoir or an analogous reservoir, as
defined in paragraph (a)(2) of this section, or by other evidence using reliable technology establishing reasonable certainty.