CORP. / Ultra Petroleum Corp. reports Message from The President
Message from the President
Springtime in Wyoming brings anticipation, activity, mud and sometimes more
snow. Ultra's employees are poised to initiate a drilling, completion and
production program for 1998 that will establish new benchmarks for
shareholder value. The steps that the Company has taken to deepen our
relationships with Western Gas Resources and Halliburton Energy Services
assure that in addition to the 11 wells funded by the present agreements, up
to 49 more wells will be funded for Ultra by our partners. In addition, our
agreements in place with venture partners Colt Energy, Arrowhead Minerals,
Green River Petroleum and Adda Resources provide funding for several more
high impact wildcats.
The Ultra team has grown to 25 employees with specialists in all phases of
exploration, administration, production and finance. The Company has offices
in Vancouver BC, Denver CO., Pinedale and Casper WY. Our work force is
complemented by several unique consulting groups with expertise in land,
legal, engineering and environmental matters.
Our partner, Western Gas Resources, has also been preparing for a busy,
aggressive summer drilling and pipeline construction season. They are poised
to begin a multi well drilling program on joint properties as soon as
conditions permit.
Meanwhile Halliburton has been proceeding with a detailed program of enhanced
completion scenarios on the Stud Horse Wells that could ultimately yield more
reserves at lower costs.
Our relationship with Halliburton was recently extended when we signed an
agreement to drill and complete 17 new wells in partnership with the oil
field services giant. The wells will be concentrated in areas of known
reserves so we can start converting these reserves to a strong cash flow
stream - something we plan to focus on this drilling season.
We also intend to continue our efforts to acquire land in the most
prospective areas and to drill exploration and confirmation wells. Our
reserve growth has been nothing short of phenomenal. The only way we can
continue this rate of reserve growth is by continuing to explore our land
position with the drill bit. So far, reserves have been assigned to only
8,100 acres out of our total leasehold inventory of 350,000+ acres. Clearly,
we have an enormous amount of exploration ahead of us. We are fortunate to
have valued industry partners who are willing to bear the risks and expense
of this exploration.
Our secret weapon on the exploration front is our scientific and technical
team. During the 1997 drilling season, Ultra and our partners implemented the
most advanced and comprehensive well logging programs ever executed in our
Green River Basin wells. The information gathered will be invaluable to Ultra
Scientists for evaluation of wildcat and development projects. Our staff is
also analyzing a detailed areomagnetic survey. We have purchased a regional
2D seismic grid as a necessary first step before any 3D seismic. To enhance
our seismic and well log data we have put together an industry consortium to
"shoot" four shear wave vertical seismic profiles in Company wells. Our
technical team is integrating this information into our database to develop
a template for further exploration and development success.
The Company recognizes and cherishes the unique qualities of Wyoming and the
Wyoming people. In those areas where it has identified opportunities, the
Company is making a sincere and long-term dedication of its resources. The
Ultra environmental team is committed to develop and implement unique,
exciting and sometimes unconventional ways to develop this amazing natural
gas resource for the benefit of all.
R.G. "Jerry" Albertus
President
Tel: 604-669-0964 * Toll Free: 800-688-5651 * Facsimile: 604-688-4712
ultrapetroleum.com * e-mail: info@ultrapetroleum.com
Certain statements, including estimated reserves, potential resources and
other information included herein constitute "forward-looking statements"
within the meaning of applicable laws or regulatory policies. Such
forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements
described herein to be materially different from any future results,
performances or achievements expressed or implied by such forward-looking
statements.
Monthly Cumulative Production Chart for Ultra Wyoming Wells
(Please refer to Ultra Petroleum Corp.'s website at
ultrapetroleum.com for this chart)
Ultra's current net revenue interest is approximately 12+% and growing. |
