Ultra Petroleum Reports 2007 Proved Reserves
Increase 25 Percent to 2.980 Tcfe at F&D Costs of
$0.98 per Mcfe with 601 Percent Reserve Replacement
Ratio
��� HOUSTON, Feb. 19 /PRNewswire-FirstCall/
-- Ultra Petroleum Corp.
(NYSE: UPL) today announced that it replaced 601
percent of 2007 production as of the year-ended December 31, 2007. Its total
proved oil and gas reserves were 2.980 trillion cubic feet of gas equivalent (Tcfe), up 25 percent from 2.389 Tcfe
as of December 31, 2006. Corporate finding and development costs in 2007, were an industry leading $0.98 per Mcfe,
a decrease from $1.10 per Mcfe in 2006.
��� The total 3P
third party engineered and economic reserve estimate has increased to 10.7 Tcfe at year-end 2007 up from 9.9 Tcfe
at year-end 2006. The PV-10 value of these reserves has increased to $12.0
billion in 2007 from
$9.7 billion in 2006. The $2.3
billion or 24 percent increase in PV-10 value assumes flat capital
expenditures.
��� All reserves
are independently and completely prepared by the reserve engineering firm Netherland, Sewell and Associates, Inc. (NSAI). This is the
ninth consecutive year their estimate of Ultra's natural gas reserves has
increased. Again, only those proved undeveloped locations in the company's
budgeted three-year drilling plan are included as proved reserves in the
report. Locations that are not in the three-year budget, but would otherwise
satisfy the definition of proved reserves are included in the probable and
possible categories.�
��� The
company's inventory of low-risk, high rate of return natural gas drilling
locations continues to grow. At year-end 2006 the number of undrilled
locations in Ultra's inventory was 4,845. In 2007 we drilled over 200 wells and
ended the year with an undrilled inventory of 5,300
locations. The company's inventory of low risk, high return natural gas
locations grew by more than 650 wells, or three times what Ultra drilled in
2007.
���
"Ultra's reliable and economic resource base, as measured by the
third party reserve engineering firm NSAI, for year-end 2006 was 9.9 Tcfe valued at $9.7 billion on a PV-10 basis. As of
year-end 2007, NSAI increased their estimate of Ultra's reliable and economic
reserves to 10.7 Tcfe which increased Ultra's PV-10
value to $12.0 billion, again assuming flat cap-ex for the next twenty years. A
better indicator of value more accurately depicting the low risk nature of our
assets may be a PV-8 economic measure which totals $14.7 billion in our base
cap-ex case and $15.9 billion in our accelerated cap-ex case. Of course none of
these values incorporate the delineation and exploration upside still ahead of
us," stated Michael D. Watford, Chairman, President and Chief Executive
Officer. "In 2007 Ultra replaced 601 percent of its oil and gas production
at an industry leading finding and development cost of $0.98 per Mcfe. More importantly, the third party identified,
engineered, and economic resource base net to Ultra in Wyoming has grown from 9.9 Tcfe to 10.7 Tcfe, well on our
way to the 12.0 Tcfe target. Year-end 2007 undrilled locations grew to 5,300, an increase of 650
locations. At forecasted 2008 capital expenditure levels, our undrilled inventory totals 24 years," Watford added.
��� Reserve tables to follow.
Ultra Petroleum Corp.
Reserves
December 31, 2007
�
�������������������������������������������������
SEC Pricing -- $6.13 per Mcf
�
��������������� Net����� Net����� Net��������������� SEC�������������� Future
��� Reserve����
Gas����� Oil��� Equiv.����
PV-8���� PV-10��� Economic��
Capex
���� Category� (BCF)��� (MMB)��
(BCFE)��� (MM$)���� (MM$)�����
Wells��� (MM$)
�
��� PDP����
1,039.024�� 8.402 1,089.436 3,020.943� 2,738.650��� 670������
-�
�
��� PDNP������
45.200�� 0.362��� 47.372��
130.893��� 119.340���� 26����
26.823
�
��� PUD����
1,758.431�
14.067 1,842.836 3,481.745�
2,983.203��� 687� 2,073.824�
�
��� Total
���� Proved 2,842.655� 22.831 2,979.644 6,633.581� 5,841.194�
1,383� 2,100.647
�
��� Prepared by Netherland, Sewell and Associates, Inc.�
�
�
�
Ultra Petroleum Corp.
Reserves
December 31, 2007
�
������������������������������������� Natural
Gas Sensitivity -- $7.00 per Mcf�
����������������������������������������������������������
$700 million Cap-Ex
�
��������������� Net���� Net���� Net���������������������������������� Future�
���
Reserve���� Gas����
Oil��� Equiv.���� PV-8�������
PV-10� Economic� Capex
���� Category� (BCF)��
(MMB)�� (BCFE)���� (MM$)������
(MM$)��� Wells�� (MM$)�
�
��� PDP����
1,040.608� 8.413� 1,091.086�
3,385.755� 3,066.781�� 671���������
-�
�
��� PDNP������
45.108� 0.361���� 47.276���
148.988��� 136.016��� 26����
26.823�
�
��� PUD����
1,758.431 14.067�
1,842.836� 4,085.790� 3,522.568��
687� 2,073.824�
�
��� Total
���� Proved 2,844.147 22.842� 2,981.197� 7,620.533�
6,725.366 1,384� 2,100.647�
�
��� Prob.�� 3,833.873 30.479� 4,016.748� 4,394.584�
3,351.926 2,196� 6,917.771�
�
��� 2P
��� (PV.
���� + PB.) 6,678.020 53.321� 6,997.945
12,015.117 10,077.292 3,580�
9,018.418�
�
��� Poss.�� 3,575.647 27.886� 3,742.964� 2,710.186�
1,899.738 2,417� 7,614.464�
�
��� 3P
���� (PV.
���� + PB.
���� + PS.)10,253.667
81.207 10,740.909 14,725.303 11,977.030 5,997 16,632.882�
�
��� Future
���� Wells� 9,167.951 72.433�� 9,602.55���������������������� 5,300 16,606.060�
���� Prepared by Netherland, Sewell and Associates, Inc.�
��� 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. Ultra is listed on the New York Stock
Exchange and trades under the ticker symbol "UPL".� The company had 152,313,738 shares
outstanding on January 31, 2008.
��� This release
can be found at http://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, forecast,
projections, or statements other than those of historical fact, are
forward-looking statements.
Although the company believes that the expectations reflected in the
forward-looking statements are based on reasonable assumptions, it can give no
assurance that such expectations will prove to have been correct and undertakes
no obligation to update this information. The company urges investors to
consider that these statements are not guarantees of performance and that
actual results could and may differ materially from these forward-looking
statements.�
��� The SEC permits
oil and gas companies, in their SEC filings, to disclose only
"proved" reserves that the company has demonstrated to be
economically and legally producible under existing economic and operating
conditions by actual production or conclusive formation tests. Any reserve
estimates in this press release that are not specifically designated as
"proved" reserves may include not only proved reserves, but also
other categories of reserves that the SEC guidelines allow in news releases but
strictly prohibit the company from including in its SEC filings. Investors are
urged to consider this disclosure and additional disclosure in the company's
Annual Report on Form 10-K, available on its website or by request to 363 North
Sam Houston Parkway E., Suite 1200, Houston, 77060 (Attention: Investor
Relations). You can also obtain this information from the SEC by calling
1-800-SEC-0330 or on its website at http://www.sec.gov.��
SOURCE� Ultra Petroleum Corp.
��� -0-���������������������������� 02/19/2008
��� /CONTACT:�
Kelly L. Whitley, Manager Investor Relations of Ultra Petroleum Corp., +1-281-876-0120,
ext. 302, info@ultrapetroleum.com/
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��� (UPL)