Ultra Petroleum Reports 2008 Proved Reserves of 3.52 Tcfe, an 18 Percent Increase, or 21 Percent on a Per Share Basis, and All-I
17 Febrero 2009 - 4:05PM
PR Newswire (US)
- 2008 proved reserves increase to 3.52 Tcfe from 2.98 in 2007
HOUSTON, Feb. 17 /PRNewswire-FirstCall/ -- Ultra Petroleum Corp.
(NYSE: UPL) today announced that its total proved oil and gas
reserves for the year-ended December 31, 2008, were 3.52 trillion
cubic feet of gas equivalent (Tcfe), an 18 percent increase from
2.98 Tcfe as of December 31, 2007. On a per share basis, the 2008
proved reserves increased 21 percent from 2007. The 2008 reserve
replacement of 470 percent was achieved organically. Corporate
finding and development costs in 2008 were an industry-leading
$1.39 per Mcfe, inclusive of all capital costs. Capital costs
during 2008 were $949.7 million. Finding and development costs
mirror the company's depletion rate. There were no required
impairment expenses. The total 3P reserves estimated by a
third-party engineering consulting firm increased to 11.66 Tcfe at
year-end 2008 an increase of 9 percent from 10.74 Tcfe at year-end
2007. As of December 31, 2008, the estimated future net cash flow
discounted at 10 percent, or pre-tax PV-10, is $11.1 billion as
compared to $10.0 billion at year-end 2007. "The foundation of
Ultra Petroleum that I don't emphasize enough is the scale of what
we own in one field in southwestern Wyoming - our nearly 12 Tcfe of
reserves at the industry's lowest cost structure. The most often
mentioned challenge for energy companies today is resource capture
to enable growth. At Ultra, we've met that challenge and have in
excess of a 20 year inventory of high rate of return projects,"
stated Michael D. Watford, Chairman, President and Chief Executive
Officer. "And unlike many of our peers, Ultra's 2008 proved
reserves increased 18 percent despite a 23 percent decrease in SEC
pricing," Watford added. The company's inventory of low-risk, high
rate-of-return natural gas drilling locations continues to grow. At
year-end 2007 the number of undrilled locations in Ultra's
inventory was 5,300. In 2008, the company participated in 307 wells
and ended the year with an undrilled inventory of 5,570 locations,
an increase of almost 600 locations from 2007. All reserves are
independently and completely prepared by the reserve engineering
firm Netherland, Sewell and Associates, Inc. (NSAI). This is the
tenth 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 SEC
definition of proved reserves, are included in the probable
category. Reserve tables to follow. Ultra Petroleum Corp. Reserves
December 31, 2008 SEC Pricing - $4.71 per Mcf Net Net Net Future
Reserve Gas Oil Equiv. PV-8 PV-10 Economic Capex Category (BCF)
(MMB) (BCFE) (MM$) (MM$) Wells (MM$) PDP 1,260.36 10.24 1,321.82
2,596.00 2,369.85 911 - PDNP 152.20 1.22 159.51 291.00 263.10 64 74
PUD 1,943.23 15.55 2,036.50 2,180.00 1,810.92 758 2,277 Total
Proved 3,355.79 27.01 3,517.83 5,067.00 4,443.87 1,733 2,351
Prepared by Netherland, Sewell and Associates, Inc. Ultra Petroleum
Corp. Reserves December 31, 2008 Natural Gas Sensitivity - $6.00
per Mcf Net Net Net Future Reserve Gas Oil Equiv. PV-8 PV-10
Economic Capex Category (BCF) (MMB) (BCFE) (MM$) (MM$) Wells (MM$)
PDP 1,273.10 10.35 1,335.17 3,555.00 3,233.66 911 - PDNP 152.21
1.22 159.51 412.00 375.78 64 74 PUD 1,940.54 15.52 2,033.68
3,574.00 3,059.53 752 2,271 Total Proved 3,365.84 27.09 3,528.37
7,541.00 6,668.97 1,727 2,345 Probable 5,625.59 45.01 5,895.62
4,726.00 3,548.49 3,359 10,157 2P (PV + PB) 8,991.43 72.09 9,423.98
12,267.00 10,217.46 5,086 12,502 Possible 2,137.54 17.10 2,240.14
1,235.00 858.82 1,459 4,606 3P (PV + PB + PS) 11,128.97 89.19
11,664.12 13,502.00 11,076.29 6,545 17,108 Future Wells 9,703.66
77.63 10,169.44 5,570 17,034 Prepared by Netherland, Sewell and
Associates, Inc. Note: Amounts may not total due to rounding 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 151,232,545
shares outstanding on January 31, 2009. 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/.
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, ext. 302, Web Site:
http://www.ultrapetroleum.com/
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