DON PLANT HAS HIS HAND UP.
I know I promised not speak until I was intelligent but things are a little slow on the thread at present and I'm not learning fast enough.
Fri I bough a few shares of UP-V mainly because I like one of their stories and also because I have made money twice already on it.
The news release below tells some of the story that I like. What it dos'nt make to clear is that it is my understanding that sour gas has been the problem in bringing this feild into production. They could not do anything with it.
However they apparently have solved the problem by buying the feild next to them which is depleted and they are of course going to store the gas there.
They also have several other irons on the go.
They have a pipeline being built now to this feild at the pipeline builders expense (share in profits I believe) and this pipeline is scheduled to be completed before year end and it is on schedule I think.
Any opinions ? Here is one of their releases
Ultra Petroleum Corp UP
Shares issued 15,010,869 Jun 5 close $0.58
Wed 5 Jun 96 News Release
Mr Jerry Albertus reports
The company has entered into a contract with Campeon Pipeline Company of
Dallas, Texas for the construction of a ten mile pipeline from the Cedar
Creek field to the John W. Smackover Unit facility site, both in Henderson
county, Texas. Campeon will build, own and operate the pipeline which will
be capable of transporting 18,000 Mcf per day of gas and 4,400 barrels of
oil per day.
The company will have control over the production volume to be transported
through the pipeline and will pay a through-put charge for the service. It
has an option to purchase the pipeline at a competitive rate valued on a
declining scale over five years.
In an engineering report released August 2 1995 by Harper & Associates,
recoverable reserves of oil and liquids from the Cedar Creek field are
calculated as follows:
Oil/Liquids Gas
Reserves (barrels) (bcf)
----------------- ----------- --------
Proved 3,838,087 8.356
Proved and
probable 8,584,078 17.509
Proved, probable
and possible 12,891,676 24.982
The South Cedar Creek field has the potential to develop five to seven
producing wells, each averaging 750 barrels of oil per day of production.
The company is operator and holds 87.5% working interest in the Cedar Creek
field.
Construction of the pipeline is expected to be completed within four
months.
(c) Copyright 1996 Canjex Publishing Ltd. canada-stockwatch.comultra Petroleum Corp UP |
