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Gold/Mining/Energy : Ultra Petroleum (UPL) -- Ignore unavailable to you. Want to Upgrade?

To: upultra who wrote (4688)	7/25/2000 4:24:23 PM
From: Gerald Atwater	Read Replies (1) \| Respond to of 4851

riker, <<I am still trying to find out why AEC paid $900 million for McMurray Oil.>> (I would appreciate anyone correcting any mistakes I've made in the following facts/assumptions concerning the above.) Alberta Energy (AEC) paid about U.S.$610,000,000 to McMurry Energy (MEC) for "1.2 trillion cubic feet equivalent of long-life, low operating cost, high-working interest reserves, at competitive costs: Proven and Probable C$0.74/mcfe Established C$0.91/mcfe Proven C$1.19/mcfe" (from a May 2, 2000 news release at the AEC site.) McMurry currently has about 174 wells listed on the WOGCC site, many of them undrilled, with many more to come due to the 40-acre downsizing (by which Ultra got an additional 22 locations). AEC expects to increase production from the current 140 MMcfd to 220 MMcfd in 2002. AEC also bought control and operatorship of the Jonah Gas Gathering pipeline for an additional sum so as to control its growth. AEC also acquired some MEC Anticline property. MOST of the Anticline property, though, is still controlled by McMurry Oil (MEC is the parent). McMurry has great expectations for the Anticline acreage. It may think that Jonah was only the beginning of what is to be discovered. Gerry Atwater