Operational update -
Ultra Petroleum today announced operational success in Wyoming and China and updated its hedging program.
Pinedale Anticline, Wyoming
To date in 2003, Ultra has participated in a total of 44 new wells. Of these, 7 wells are fully completed and producing, 16 are at various stages of completion, and 21 are currently drilling. All of the wells drilled appear successful. Of note, the Ultra operated Mesa 10-33 was drilled and completed approximately 3/4ths of a mile SSW from the previously announced Mesa 1-33 well and was brought on production at a record initial rate of 21.3 MMcfe/d surface constrained. The Ultra operated Mesa 7-34 was brought in at an initial production rate of 11.0 MMcfe/d. Neither well was drilled in a location assigned proved reserves at year-end 2002.
Bohai Bay, China
Since June 30, Ultra's wholly owned subsidiary Sino-American Energy Corporation participated in two additional successful wells in Block 04/36. The CFD 11-6-1 exploration well had multiple oil bearing sandstone reservoirs in the Minghuazhen and Guantao formations, discovering a new field. This well is located approximately 4 km southwest of the successful 12-1-7 field appraisal well. The CFD 11-6-2 appraisal well, drilled approximately 4 km NNE of the 11-6-1 well also encountered multiple Minghuazhen and Guantao reservoirs containing light gravity oil.
Hedging
Currently, Ultra has approximately 15.1 Bcf, or 41 MMcf/d, hedged at an average price of $4.40 per Mcf (basis Opal, Wyoming) for calendar 2004. These hedges assure $66.8 Million of 2004 revenue. Ultra's 2003 hedge position has not changed. Details of the hedges are available on Ultra's website.
"Our extraordinary operational success continues. We have extended our 100% success rate in Wyoming, drilling both proven and unproven locations. Our results have not only increased the productive area to the east and west but have also expanded the reserve potential within the previously defined fairway, with wells like the Mesa 1-33 and 10-33 exceeding pre-drill reserve estimates by a significant percentage.
Our Bohai Bay results in the CFD 12-1-7, 11-6-1 and 11-6-2 wells have proven that the previously defined CFD 12-1 field was merely the tip of the iceberg. Our previous maps had 3,900 acres of structural closure at the 12-1 field. The recent wells proved a 9 km westward expansion of the 12-1 structural trend, effectively doubling the structure to more than 9,000 acres. The 12-1 / 11-6 complex may be the largest we've found to date on the Blocks. We remain on schedule and budget for first oil from the CFD 11-1/11-2 fields in the second half of next year. These latest discoveries and extensions bode well for potentially significant production increases in 2005 and beyond," stated Michael D. Watford, Ultra's Chairman, President and CEO.
see biz.yahoo.com |
