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

To: Bob Walsh who wrote (4814)	11/4/2003 8:29:40 AM
From: Bob Walsh	Read Replies (2) \| Respond to of 4851

Q3 = $0.13 HOUSTON, Nov. 4 /PRNewswire-FirstCall/ -- Ultra Petroleum (Amex: UPL - News; Toronto: UP - News) today reported that earnings increased 974% to $10,327,987 or $0.13 per share for the quarter ending September 30, 2003 compared to $961,286 or $0.01 per share for the same period in 2002. Cash flow (A) for the quarter ended September 30, 2003 increased 384% to $20,902,191 or $0.27 per share, compared to $4,318,339 or $0.06 per share for the same period in 2002. For the nine-month period ended September 30, 2003 earnings increased 558% to $26,169,533 or $0.33 per share, compared to $3,979,590 or $0.05 per share for the same period in 2002. Cash flow (A) for the nine-month period increased 299% to $54,737,390 or $0.70 per share, compared to $13,733,771 or $0.18 per share for the same period in 2002. Production for the third quarter increased 66% to 6.9 Bcfe; averaging 75 MMcfe/d compared to 4.2 Bcfe or 45 MMcfe/d for the same quarter in 2002. Average natural gas prices increased to $4.17 per Mcf for the third quarter compared to $1.91 for the same period in 2002. Average oil prices for the third quarter of 2003 increased to $31.37 compared to $30.21 in 2002. Production for the nine-month period ended September 30, 2003 increased 69% to 19.1 Bcfe, or 70 MMcfe/d compared to 11.3 Bcfe or 42 MMcfe/d for the same period in 2002. Average natural gas prices for the nine-month period increased to $3.99 per Mcf compared to $2.18 per Mcf during the same period in 2002 while average oil prices increased to $31.04 compared to $24.93 in 2002. "This third quarter is another in a string of record quarters for Ultra Petroleum and further demonstrates the quality of our assets and execution," stated Michael D. Watford, Ultra's Chairman, President and CEO. "Earnings increased 974% on the back of a 66% increase in production and we continue to enjoy the benefits of the Kern River Pipeline expansion shrinking the differential in Wyoming and delivering significantly higher price realizations for us. "Our deep inventory of opportunities continues to grow. This year we broadened the productive area at Pinedale by drilling additional successful step out wells east and west of the identified fairway. And with success, the 20 acre pilot program we're starting will provide a step function increase in our opportunities. Our China development remains on schedule and budget for first oil. We're on track to meet or exceed our production and reserve targets for the year and enter 2004 well positioned to once again deliver industry leading reserve and production growth while maintaining a cost structure among the lowest in our industry. Without a doubt, our operational and financial successes so far this year will deliver the best year yet in Ultra's history."

To: Bob Walsh who wrote (4814)	11/8/2003 3:55:40 PM
From: Bob Walsh	Read Replies (1) \| Respond to of 4851

IBD Article re Ultra - Part 2: At last count, Ultra was the principal partner in 162 wells. Its land position in the so-called Pinedale anticline of the Green River Basin totals 122,000 acres. The company claims that between 30,000 acres and 70,000 acres of the tight sand formation are productive and have long lives. At the end of 2002, Ultra had proven gas reserves of 700 billion cubic feet. Based on engineering data, company execs contend there's much more on hand to tap. "The ultimate potential could be as large as 4 trillion to 5 trillion cubic feet" said CFO Fox Benton. He puts the low end at 2 trillion cubic feet - still three times where Ultra was at the end of last year. It won't happen overnight. New drilling requires capital investment and patience. The company would probably reach at least 2 trillion cubic feet by the end of the decade, Benton says. Ultra expects to begin in-fill drilling at the end of the quarter. Plans over the next year call for drilling 16 new wells under the new 20-acre allotments. The company's board has approved two increases to this year's capital budget - the first for $30 million and the most recent for $20 million - for a total of $130 million. That's more than double last year's capital budget. If the Wyoming plays aren't enough, Ultra expects a new act to debut next year in another part of the world: China. The company is a minority partner with KMG in the Bohai Bay oil fields in offshore China. The partners have discovered nine fields to date. The first two are slated to go into production late next year. "Our goal is to bring a couple of new fields into production each year," Benton said. He expects the fields to produce oil for the next 15 years. "It's not as long life as Wyoming, but it's still long compared to the Gulf of Mexico," he said. About 20% of Ultra's production in 2005 will come from China, Benton says. Overall, the firm has identified projects that will let it deliver 30% to 50% production growth the next three to five years. Now if only commodity prices hold up. Analysts don't expect today's highs to last through 2004. But they don't figure they'll drop too much. Johnson & Rice has gas prices trending down to $4.75 next year and holding, from an estimated $5.19 this year. It estimates oil prices will drop from this year's projected $30.38 to $24.50 in 2004.