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8-K - FORM 8-K - ULTRA PETROLEUM CORP | h69139e8vk.htm |
EX-1.1 - EX-1.1 - ULTRA PETROLEUM CORP | h69139exv1w1.htm |
Exhibit 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE
ULTRA PETROLEUM ANNOUNCES STRATEGIC MARCELLUS ACQUISITION
AND PENNSYLVANIA OPERATIONS UPDATE
AND PENNSYLVANIA OPERATIONS UPDATE
HOUSTON, Texas December 21, 2009 Ultra Petroleum Corp. (NYSE: UPL) today announced that it
has signed a purchase and sale agreement to acquire approximately 80,000 (net) acres in the
Pennsylvania Marcellus Shale, from a private company. Following the acquisition, Ultra Petroleum
will hold approximately 250,000 net acres in this region, with the potential for 1,800 net drilling
locations. Ultra Petroleum expects to pay roughly $400.0 million for the assets which will be
financed using debt.
We are strategically increasing the scale of our Marcellus position with assets that rival the
returns of our current acreage. With this acquisition, we believe that our net recovered resource
in the Marcellus alone will exceed 8.5 trillion cubic feet equivalent (Tcfe), an increase of 3.5
Tcfe from current estimates, stated Michael D. Watford, Chairman, President and Chief Executive
Officer.
The company expects the transaction to close late February 2010, subject to standard closing
conditions, with an effective date of October 1, 2009.
Ultra Petroleum in the Marcellus Shale
2009 year-to-date, the company has drilled 30 horizontal wells with 13 producing. Initial
production (IP) rates for the producing wells average 7,500 Mcf per day with preliminary estimated
ultimate recoveries (EURs) ranging from 3.5 to 4.0 Bcf.
The company started 2009 with 288,000 gross (152,000 net) acres in the Marcellus. Through a
combination of land acquisitions and swaps, including todays announcement, Ultra Petroleum has
added over 192,000 gross acres, nearly doubling its position to approximately 480,000 gross
(250,000 net) acres. The companys expanding core position is concentrated around Tioga, Bradford,
Lycoming, Potter, Clinton and Centre counties in north central Pennsylvania.
A PowerPoint presentation regarding the acquisition is posted on Ultra Petroleums homepage and can
be found at www.ultrapetroleum.com.
Ultra Petroleum Corp. | Page 1 of 2 | |
Marcellus Acquisition & | ||
Pennsylvania Update |
About Ultra Petroleum
Ultra Petroleum Corp. is an independent exploration and production company focused on developing
its long-life natural gas reserves in the Green River Basin of Wyoming the Pinedale and Jonah
Fields; and is in the early stages of exploration in the Appalachian Basin in Pennsylvania. Ultra
is listed on the New York Stock Exchange and trades under the ticker symbol UPL. The company had
151,443,094 shares outstanding on November 30, 2009.
This release can be found at www.ultrapetroleum.com.
This news release includes forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. The opinions, forecasts, projections or other statements, other than statements of
historical fact, including our ability to consummate the acquisition described in this release, are
forward-looking statements. Although the company believes that the expectations reflected in such
forward-looking statements are reasonable, we can give no assurance that such expectations will
prove to have been correct. Certain risks and uncertainties inherent in the companys businesses
are set forth in our filings with the SEC, particularly in the section entitled Risk Factors
included in our Annual Report on Form 10-K for our most recent fiscal year and from time to time in
other filings made by us with the SEC. These risks and uncertainties include the results of our
diligence review of properties, increased competition, the timing and extent of changes in prices
for oil and gas, particularly in Wyoming, the timing and extent of the companys success in
discovering, developing, producing and estimating reserves, the effects of weather and government
regulation, availability of oil field personnel, services, drilling rigs and other equipment, and
other factors listed in the reports filed by the company with the SEC.
The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved
reserves that a company has demonstrated by actual production or conclusive formation tests to be
economically and legally producible under existing economic and operating conditions at oil and gas
prices in effect at the time of the estimate, without future escalation. We include in this press
release the term estimated ultimate recoveries, or EUR, that the SECs guidelines strictly prohibit
us from including in filings with the SEC. Investors are urged to consider closely the disclosure
in our Annual Report on Form 10-K, as amended, available from us at www.ultrapetroleum.com or from
the SEC at www.sec.gov.
For further information contact:
Kelly L. Whitley
Manager Investor Relations
Phone: 281-876-0120 Extension 302
Email: info@ultrapetroleum.com
Website: www.ultrapetroleum.com
Kelly L. Whitley
Manager Investor Relations
Phone: 281-876-0120 Extension 302
Email: info@ultrapetroleum.com
Website: www.ultrapetroleum.com
Ultra Petroleum Corp. | Page 2 of 2 | |
Marcellus Acquisition & | ||
Pennsylvania Update |