Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Hickory who wrote (4126)	5/27/1999 7:34:00 PM
From: Gerald Atwater	Respond to of 4851

Hickory -- <<A partial interest in only 9 new wells in a year is not going to give UP much of a lift.>> Actually it might. Until payout UP was only getting about 10% of the proceeds from the wells drilled by Halliburton and Western Gas. By drilling their own 7-9 wells with the cash from Anschultz, Ultra will be getting about 30% of the cash, or the equivalent of the percentage from a couple of dozen wells under the former format. Plus, because apparently no Jonah wells were involved in the Anschultz deal, each of these wells will begin to reach payout over the next year or so and then the cash will go directly to the bottom line instead of to HAL and WGR. So while I was initially disappointed in the deal it did accomplish ONE ABSOLUTELY ESSENTIAL THING. It gives the company the cash to drill its own wells with whichever company offers the best price (Schlumberger? ? ?) and service and puts more cash in Ultra's pocket at the same time. Gerry Atwater