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UNIT CORP. SAYS COURT OF APPEALS UPHOLDS RULING INVOLVING MORTGAGE FORECLOSURE LAWSUIT

 TULSA, Okla., Jan. 14 /PRNewswire/ - Unit Corporation today announced that the Oklahoma Court of Appeals has upheld a trial court ruling against the company involving a mortgage foreclosure lawsuit in which the company was a defendant.
 Palo Duro Production Company filed the lawsuit against the company and numerous other defendants to foreclose certain mortgages it had purchased from the Federal Deposit Insurance Corporation. The interests of the company involved in the lawsuit consisted of its interest in 56 oil and gas leases the company had acquired from the First national Bank and Trust Company of Oklahoma City in late 1985 prior to the bank's failure and its takeover by the FDIC. Before the company acquired these interests, the bank had acquired the properties in 1985 from one of its borrowers as part of a deed in lieu restructuring. The bank failed in 1986. In 1988, Palo Duro acquired from the FDIC certain mortgages which Palo Duro claimed covered numerous oil and gas properties, including the Company's interest in the 56 oil and gas leases. In the ensuing litigation by Palo Duro, the FDIC joined with the Company in contesting Palo Duro's claims that the company's properties were subject to the mortgages acquired by Palo Duro. The Trial Court entered judgment of foreclosure against the company's 56 properties, ordered the company to pay Palo Duro $519,065.19, which represented the net oil and production revenues the company had received from these properties since 1985, and further ordered Unit to pay Palo Duro $486,827.70 in attorney fees. This judgment with interest currently totals approximately $1,200,000.00. A money judgment was also rendered against the FDIC.
 The company intends to pursue all of its appellate rights including an appeal with the Oklahoma Supreme Court. In addition, management and legal counsel have concluded that the company has recourse against the FDIC and has filed a separate action against the United States Government. The separate action seeks to hold the Government liable for all costs and damages the company may incur as a result of the Oklahoma State Court action.
 Management and legal counsel are of the opinion that the ultimate resolution of this matter will not result in a material loss, if any, to the company. Accordingly the company has not recorded a provision for loss with respect to this litigation.
 -0- 1/14/93
 /CONTACT: Larry D. Pinkston, officer and treasurer of Unit Corp., 918-493-7700/


CO: Unit Corp.; Palo Duro Production Co. ST: Oklahoma IN: SU:

TM -- SF011 -- 5124 01/14/93 18:19 EST
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Publication:PR Newswire
Date:Jan 14, 1993
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