(PR NEWSWIRE) Ultra Petroleum Focuses on Growth in Shareholder Value Throu
Ultra Petroleum Focuses on Growth in Shareholder Value Through Continued
Exploration and Development in Wyoming
DENVER, Aug. 10 /PRNewswire/ -- Michael D. Watford, Chairman and CEO of
Ultra Petroleum (Toronto: UP) and Stephen Kneller, Vice President, Exploration
presented Ultra Petroleum's Green River Basin natural gas play, extensive land
position, and corporate focus at The Oil & Gas Conference sponsored by
EnerCom, Inc. and Kirkpatrick Energy Associates, Inc.
(Photo: newscom.com )
The Company stated its goal of building shareholder wealth by focusing
primarily on aggressive development and further high-impact exploration on its
core Green River Basin acreage position. The Company also stated that it
intends to leverage the expertise that it has developed in this core area to
improve its results on this acreage and to identify and capitalize on other
plays that have similar attributes.
The Company presented a detailed review of its 200,000 net acres, the
resource potential thereon and the current drilling program for the balance of
1999 with partners Questar Exploration and Production, a subsidiary of Questar
Corp. (NYSE: STR) and Anschutz Wyoming Corp. The review included an in-depth
discussion of geology including Lance sand fairway maps, depositional
reconstructions, formation cross-sections, and well characteristics and
economics; all of which highlighted not only the Company's understanding of
its acreage, but also the potential for successful gas discovery and
development. Most of the drilling for the balance of 1999 will occur in the
Mesa Project Area.
Ultra also discussed some of the technological factors driving the success
of the play: improved understandings of geology and reservoir characteristics
coupled with evolving well stimulation techniques. These factors are leading
to improved well performance and reductions in costs that Ultra believes will
continue to expand the play.
The Company then presented graphs detailing the growth in its production
and reserves since 1997. Production has grown from 300 MMcfe in 1997 to
4.4 Bcfe in fiscal 1999. Likewise, proved producing reserves have grown more
than 450% since 1997, to 36.4 Bcfe at June 30, 1999, while total proved plus
probable reserves are 349 Bcfe at June 30, 1999.
After a review of Ultra's improving financial position, Mr. Watford walked
the audience through a net asset value calculation based on Ultra's June 30th
financials and reserve report. This analysis indicated a net asset value of
C$3.68 (US$ 2.47) per share, well above Ultra's recent price of C$1.20 per
share. Mr. Watford concluded by presenting Ultra's goals for the coming year:
positive cash flow and earnings, 300% production replacement, finding and
development costs of less than $0.45 per Mcfe and a doubling of total oil and
gas reserves by December 2000.
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.
This article includes projections and "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. All
projections and statements other than statements of historical facts included
in this article, including without limitation, business strategies, plans and
objectives of management of Ultra for future operations, and capital
expenditures are forward-looking statements. There can be no assurances that
such forward-looking statements and projections will prove to be correct.
Important factors that could cause actual results to differ materially from
the forward-looking statements ("Cautionary Statements") and projections
include: volatility in oil and gas prices, operating risks, and risks
associated with reserve replacement, competition from other companies and
other factors set forth in the Company's Annual Report on Form 20-F filed with
the SEC and incorporated herein. All subsequent written and oral
forward-looking statements and projections attributable to the Company or to
persons acting on its behalf are expressly qualified by the Cautionary
Statements.
SOURCE Ultra Petroleum
-0- 08/10/99
/CONTACT: Mike Watford of Ultra Petroleum, 303-708-9740; or Gregory B.
Barnett of EnerCom, Inc., 303-296-8834; or C.W. MacLeod of Kirkpatrick Energy
Associates, 303-893-6633/
/Photo: newscom.com
PR Newswire Photo Desk, 888-776-6555 or 201-369-3467/
/Web site: http://www,ultrapetroleum.com
enercominc.com
kirkpatrickenergy.com
(STR UP.)
CO: Ultra Petroleum
ST: Colorado
IN: OIL
SU:
*** end of story *** |
