Ultra Petroleum (UPL) Message Board

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Gold/Mining/Energy : Ultra Petroleum (UPL)

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To: Hickory who wrote (4126)	5/27/1999 7:34:00 PM
From: Gerald Atwater	of 4851

Hickory -- <<A partial interest in only 9 new wells in a year is not going to give UP much of a lift.>> Actually it might. Until payout UP was only getting about 10% of the proceeds from the wells drilled by Halliburton and Western Gas. By drilling their own 7-9 wells with the cash from Anschultz, Ultra will be getting about 30% of the cash, or the equivalent of the percentage from a couple of dozen wells under the former format. Plus, because apparently no Jonah wells were involved in the Anschultz deal, each of these wells will begin to reach payout over the next year or so and then the cash will go directly to the bottom line instead of to HAL and WGR. So while I was initially disappointed in the deal it did accomplish ONE ABSOLUTELY ESSENTIAL THING. It gives the company the cash to drill its own wells with whichever company offers the best price (Schlumberger? ? ?) and service and puts more cash in Ultra's pocket at the same time. Gerry Atwater

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