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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: RIK who wrote (7024)	12/22/1999 4:48:00 PM
From: RIK	Respond to of 24939

Wednesday December 22, 3:18 pm Eastern Time Company Press Release Ulster Updates its Activities and Announces Shareholder Rights Plan CALGARY, ALBERTA--Ulster Petroleums Ltd. announced today that it has completed construction of its Leland area facilities and production from the initial discovery well is onstream at an initial rate of 23.5 MMcf/d raw gas. This new production facility is capable of processing 60 MMcf/d of raw gas from the area. ``Today marks a new stage in Ulster's development as we commence gas production from our Leland project area' stated Fred Woods, President and Chief Operating Officer of Ulster. ``The success of this project and the additional opportunities within our high impact program have the potential to be significant contributors to Ulster's continued growth in the new millennium.' Ulster's production growth continues to be driven by its exploratory and development drilling successes in its two core operating areas. The Peace River Arch, where we spudded a record total of 67 gross wells and Central Alberta, where we spudded 26 gross wells in 1999. During the fourth quarter of 1999, Ulster added the following new production in the Peace River Arch: 1. At Wapiti, Ulster added 15 MMcf/d of new production from its recent drilling and tie-in activities. In addition, Ulster recently received approval to commence production testing of its first quarter Triassic light oil discovery (100% working interest ``WI') at a restricted rate of 200 bbls/d. The results of this production test and a 150 square mile 3D seismic program being shot on the offsetting lands will be used to plan a follow-up drilling program for this potentially significant discovery. 2. At Leland, Ulster completed construction of a major new production facility which enabled us to bring our first quarter new pool discovery well (75% working interest ``WI' after payout) on stream. We plan to maintain production at 25 MMcf/d raw gas, with estimated shrinkage associated with the acid gas content from the well at 35%. The Company's 1999 drilling activities in Central Alberta were directed primarily towards the maintenance of light oil production volumes from our Clive and Wimborne fields and the exploitation of our shallower Cretaceous natural gas reserves. With the addition of production from the Leland area, Ulster's current production is approximately 160 MMcf/d of gas and 12,500 bbl/d of oil and NGLs. Due to the delayed start-up of these production additions, fourth quarter production volumes are anticipated to average 26,500 boe/d. This winter's drilling program has commenced and the Company is aggressively pursuing its high impact Deep Devonian Program. At Leland (Horse), we are currently drilling three exploratory wells to follow-up on our initial discovery: - Ulster et al Horse 16-35-58-26 W5M (75% Ulster working interest ``WI') has drilled through the prospective Wabamun interval, was logged and is drilling ahead towards our targeted depth in the Nisku. Based on results from this well, Ulster and its partner intend to case the well and will complete the Wabamun during the first quarter 2000. - Ulster Horse 1-34-58-26 W5M (100% Ulster WI) has reached total depth at 4,100 metres. This well encountered the prospective Wabamun interval, will be cased and Ulster plans to complete and tie-in the well during the first quarter 2000. - Ulster Leland 15-3-59-26 W5M (100% Ulster WI) is drilling at 3,350 metres towards a projected total depth of 4,200 metres.This well is scheduled to reach final depth in the first quarter of 2000. (For competitive reasons, Ulster will be holding the results of this well as confidential.) Going forward into the first quarter of 2000, the Peace River Arch will once again be the primary focus of Ulster's drilling and completion activities as Ulster will spud 20 wells in the Wapiti/Knopcik area, targeting multi-zone Cretaceous and Triassic oil and gas opportunities, split evenly between exploration and development projects. These first quarter 2000 activities, combined with our extensive inventory of exploitation and exploration drilling prospects for the remainder of the year, will allow Ulster to achieve its 31,000 boe/d production target for the year 2000. In other news, Ulster's board of directors has approved a shareholder rights plan (the ``Plan') effective immediately. The Plan has been adopted in order to provide Ulster's shareholders with sufficient time to evaluate any unsolicited take-over bid and ensure that all of its shareholders are treated equally if a take-over bid is made. The Plan is not intended to deter take-over bids and management is not aware of any pending take-over bid for the Company. To implement the Plan, the board of directors of Ulster authorized the distribution of one share purchase right for each outstanding common share of Ulster held of record at the close of business today. The rights issued to shareholders under the Plan will entitlethe holder to acquire shares of Ulster at a 50% discount to the prevailing market price upon a person or group acquiring 20% or more of the common shares of Ulster. However, the rights are not exercisable in the event that a ``permitted bid' is made. The rights will automatically trade with the common shares of the Corporation and rights certificates will only be issued in the event of an unsolicited take over bid. A permitted bid under the Plan must provide for a minimum deposit period of 45 days and must be made to all shareholder (regardless of the jurisdiction in which the shareholder resides). A permitted bid must also satisfy certain other conditions, including that a minimum of 50% of the outstanding shares (exclusive of shares held by the offeror) must be tendered into the bid after which time the bid must then be extended for a further period of 10 business days. The Plan has a term of five years and will be submitted to shareholders for ratification at a special meeting scheduled on May 11,2000. To remain effective, the Plan must be approved by more than 50% of the votes cast at that meeting. Ulster Petroleums Ltd. is a highly focused, Canadian exploration company whose common shares are actively traded on The Toronto Stock Exchange under the symbol ``ULP'. Contact: Ulster Petroleums Ltd. Mr. Fred Woods President and Chief Operating Officer (403) 269-0425 (403) 264-6545 or Ulster Petroleums Ltd. Mrs. Judy Stripling Vice President Finance and Chief Financial Officer (403) 269-0430 (403) 264-6545