HOUSTON, April 20 /PRNewswire-FirstCall/ -- Ultra Petroleum Corp. (AMEX:UPL) today reported the largest quarterly production in the company's history. Production for the first quarter of 2007 increased 42 percent to a record 28.5 billion cubic feet equivalent (Bcfe) from the first quarter of 2006. Production in Wyoming alone, at the company's core asset, increased over 50 percent.
Production volumes for the quarter are as follows: Three months ended
March 31, 2007 March 31, 2006
Oil liquids (Bbls) - Domestic 193,507 128,411
Oil liquids (Bbls) - China 417,585 466,145
Natural Gas (Mcf) - Domestic 24,819,436 16,531,259
Total Production (Mcfe) 28,485,988 20,098,595
Additionally, Ultra has added to its calendar 2008 natural gas hedge position. Currently, Ultra has hedged 100,000 mmbtu/day at $7.41/Mcf or $6.83/mmbtu. The sales point for the natural gas hedges is the Opal, Wyoming hub.
On April 19, FERC approved the Rockies Express Pipeline (REX). REX will move gas from the Rockies to the Midwest and eventually the Northeast and will significantly increases the take-away capacity for natural gas in the Rockies. It is expected to be operational during the first quarter of 2008.
"We continue to set company production records at the industry's lowest cost structure. Our attractive margins will only improve with construction of Rockies Express and the reduction of basis differentials already being priced into the forward market for natural gas. With Wyoming natural gas prices near $7.50/Mcf for 2008 and our 27 year drilling inventory, we are well positioned," commented Michael D. Watford, Chairman, President and Chief Executive Officer.
The public comment period for the Draft Supplemental Environmental Impact Study (SEIS) for the Pinedale Field that was issued by the Bureau of Land Management (BLM) in late December 2006, closed April 6. It is anticipated that the BLM will issue the Record of Decision during the third quarter of 2007. When this occurs, Ultra would gain access to additional acreage year round commencing in the 2007-2008 winter drilling season. This would allow for accelerated development of the field and a significant increase in the annual number of wells drilled.
Conference Call Webcast Scheduled for May 2, 2007 Ultra Petroleum's first quarter 2007 conference call will be available via live audio webcast at 10:00 a.m. Central Daylight Time (11:00 a.m. Eastern Daylight Time) Wednesday, May 2, 2007. To listen to this webcast, log on to http://www.ultrapetroleum.com/. The webcast will be archived on Ultra Petroleum's website through July 31, 2007.
About Ultra Petroleum Ultra Petroleum is an independent, exploration and production company focused on developing its long-life natural gas reserves in the Green River Basin of Wyoming, and crude oil reserves in Bohai Bay, offshore China. Ultra Petroleum is listed on the American Stock Exchange under the symbol "UPL" with 151,905,920 shares outstanding as of March 31, 2007.
This release can be found at http://www.ultrapetroleum.com/ This news release includes "forward-looking statements" as defined by the Securities and Exchange Commission (SEC). These forward-looking statements regarding this press release include, but are not limited to, opinions, forecasts, and projections, other than statements of historical fact. Although the Company believes that these expectations are obtainable based on reasonable assumptions, it can give no assurance that such assumptions will prove to be correct. Important factors that may cause actual results to differ from these forward-looking statements, include, but are not limited to, increased competition; the timing and extent of changes in prices for crude oil and natural gas, particularly in Wyoming; risks inherent in the Company's China operations; the timing and extent of its success in discovering, developing, producing and estimating reserves; the effects of weather and government regulation; the availability of oil field personnel and services, drilling rigs and other equipment; and other risks detailed in the Company's SEC filings, particularly in its Annual Report on Form 10-K available from Ultra Petroleum Corp. at 363 North Sam Houston Parkway E., Suite 1200, Houston, TX 77060 (Attention: Investor Relations). You can also obtain this information from the SEC by calling 1-800-SEC-0330 or from the SEC's website at http://www.sec.gov/. http://www.newscom.com/cgi-bin/prnh/20020226/DATU029LOGO http://photoarchive.ap.org/ DATASOURCE: Ultra Petroleum Corp.
CONTACT: Kelly L. Whitley, Manager Investor Relations of Ultra Petroleum Corp., +1-281-876-0120, Extension 302, Web site: http://www.ultrapetroleum.com/
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