Here is the news release out this morning:
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FOR IMMEDIATE RELEASE May 26, 1999
Ultra sells acreage to Anschutz
Denver, CO -- Mike Watford, Chairman and CEO of Ultra Petroleum Corp.(TSE:UP) announced today that the Company is selling approximately 8% of its acreage position in the Green River Basin to the Anschutz Wyoming Corp. for $13.2 million dollars (U.S.) in cash and work commitments.
Anschutz is buying 15,000 net acres, including partial interest in
three producing wells. This sale represents half of Ultra's interest
in the Mesa area, located on the northern portion of the Pinedale
anticline. Ultra will retain more than a third working interest in
this part of its acreage.
"We are pleased with this sale," said Watford. "It solves our
liquidity and payables issues and acts as a catalyst to kick-start
this year's drilling program, which will begin almost immediately.
Additionally, we gain an aggressive, knowledgeable, well capitalized
partner in the Anschutz Corporation."
Plans are to drill and complete seven to nine wells before year end
and to participate in a 3-D seismic survey across the northern part
of the Pinedale anticline.
Ultra Petroleum is a natural gas exploration and development company active in the Green River Basin region of Wyoming. The Company's primary producing assets are in the Jonah Field in Wyoming. The Company is listed on the Toronto stock exchange under the symbol UP.
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While it is better than bad news, I don't know the exact ramifications of this. Perhaps others can interpret implications short and long term. |
