Lew,
You're welcome for the AEC information. A couple of other things you mention I'd like to opine on: AEC is a major gas producer and made a great acquisition with McMurry, a PRIVATE company that really started the Jonah story about 7-8 years ago. The C$9.1 million AEC paid is a nice return to McMurry for its investment and courage in taking the early risk. AEC's Green River Basin involvement adds true credibility to what Ultra and the other companies are doing at Jonah and, soon, on the Anticline. To my way of thinking Michael Watford SAVED Ultra when he did the Questar/Anschutz deal. Without that $13.1 million commitment, IMO, Ultra would be toast and I would be homeless (figuratively speaking). One thing to come from that deal was the 3-D seismic, soon to be used for more accurate well locations this drilling season. As to what percentage of Ultra's upside that deal represented is open to question at the moment. Wait, please, until after this year to place a number. From purely an acreage standpoint it was small potatoes and will be even less so should Ultra find other areas with prolific gas. Remember what the alternative was. (To be honest, when Ultra first announced the $13.1 million deal I wasn't very happy, either.) With approval of the Jonah EA Ultra will have another 22 PRIME location there, and once the Pinedale Anticline EIS is finalized (soon PLEZ) Ultra will have enough locations for years to come. Bottom line -- with great externals in place (rising NG price, majors involved, hundreds of well sites approved (soon), and with firm financial commitments, Ultra should have a great year! Then, not only will Watford NOT be an "idiot," he will be a "visionary." (Cause history gets written by the victors!) Good luck with your investments, Lew.
Gerry Atwater |
