<<Doubling by the end of June!?>>
Riker, seems to me you can safely remove the ? mark from the above quote. For the following reasons, many of which have already been stated:
1) U.S.$3.82. That's yesterday's close for NG. $4 is ex-
pected, MINAMALLY. At the low end of the cycle Ultra
was getting about half the current price. A recent
chart shows gas in storage to be only 33% of capacity.
2) EA (Environmental Assessment) for Jonah II already has
BLM approval and will be released any day now. It gives
Ultra 22 more drill sites and additional reserves of 50
BCF, according to Ultra's own figures. And remember,each SUCCESSFUL well at Jonah is
estimated to have 6 BCF over its productive life. Up-
side, therefore, is much higher.
4) The EIS (Environmental Impact Statement) was due for re-
lease in April but the comment period was extended a few
times. Approval will happen by mid-June (IMO). That
will make possible 700+ wells on the Anticline. Ultra
will have over 100 locations, enough sites for years.
PLUS, once approved, no more Fed/State stalls!
5) The Anticline wells will be drilled using 3-D seismic
maps to locate the best sites.
6) AEC (Alberta Energy), among the top five gas producers
in North America, bought McMurry's Green River Basin
holdings, and brings giant credibility to the region.
7) Ultra has strong partners in Questar and Anschutz for
wells to be drilled on a small part of the Anticline.
8) Perhaps most important: Ultra has gotten its act to-
gether under Michael Watford, has a strong line-of-
credit with Bank One, $40,000,00 with $18,000,000
available this drilling season. So, for the first time
Ultra will not be dependent on weak juniors and inad-
equate funding.
And maybe all the above will lead to a revival of this thread! Hope so! Best to all who have held on!
Gerry Atwater
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