dgz and TM --
<< . . . if they get their money back within a year or two.>>
In the meanwhile, though, Ultra was only getting a pittance (10%?). So, there are TWO reasons why Ultra changed over from Halliburton and Western Gas: Wells were too expensive and there was very little cash flow. Once Ultra's cash stash dried up (and remember gas prices were sinking like a rock) and the juniors were in trouble themselves, and even HAL and WGR were retrenching, Ultra's problems began compounding to the point where bills weren't being paid and debt was piling up. Those conditions undoubtedly created some partnership stresses. Once things got so bad and management of necessity changed (Michael Watford took over), so did the business plan -- sell some of the assets to Questar and Anschutz to raise cash, and find cheaper drillers, Schumberger, for example. Plus, get 30% of the gas revenues from the beginning. Just MHO!
As for news updates Ultra isn't too accommodating under Watford. From his perspective, though, there are probably more important things to be worrying about, like establishing a viable company that is attractive to money groups, not "groupies" (you, me, the speculators from the early days). Now, too, current well news is not under Ultra's control, rather Questar's and Anschutz's. Also, just MHO!
Gerry Atwater
P.S. And YES -- GO BRAVES! |
