Ultra Petroleum Provides Update on Horizontal Well, Asset Sales and Hedging Program
November 15 2017 - 9:55AM
Ultra Petroleum Corp. (NASDAQ:UPL) announces the following updates:
Pinedale Horizontal Program Update
Last week, the Company announced a test rate of
21 million cubic feet equivalent per day (MMcfe/d) for its two-mile
horizontal well targeting the Lower Lance A interval.
Yesterday, this well achieved a 24-hour test rate of 42
MMcfe/d. Flow-back parameters include a gas rate of 38
MMcf/d, a condensate rate of 700 barrels per day and a flowing
casing pressure of 3,000 psi. This morning’s spot rate is 46
MMcfe/d.
“The well has steadily increased over the past
week and remains on a controlled choke. With only 17% of the frac
fluid recovered to date, and flowing pressures well above normal
operating pressure, we expect to manage the flow-back for several
more weeks,” said Brad Johnson, Senior Vice President, Operations.
“In addition to being excited about this well’s high productivity,
we are also encouraged that it is generating a condensate yield of
18 barrels per MMcf, which is more than double the historic field
average.”
The Company is in the process of drilling two
additional horizontal wells. One will test a deeper Mesaverde
interval and one will be a half mile offset to the WB 9-23-A1H in
the same Lower Lance A target interval. Both wells are
expected to be online by the end of January.
Asset Sales
The Company previously announced that it was
exploring the divestment of its non-core assets. The Company has
now engaged CIBC Griffis & Small as exclusive technical and
financial advisor to assist in that process.
Commodity Hedges
Ultra has increased its hedge position and will
continue to opportunistically add additional hedges. The company is
targeting to hedge at least 50% of production for 2018. Currently,
the Company has the following NYMEX natural gas derivative
transactions in place as shown in the table below:
|
Production Period |
|
4Q17 |
1Q18 |
2Q18 |
3Q18 |
4Q18 |
Total 2018 |
Natural Gas Collars: |
|
|
|
|
|
|
Total Volume (Bcf) |
|
|
3.4 |
|
|
|
|
3.4 |
Floor Price per Mcf |
|
$3.44 |
|
|
|
$3.44 |
Ceiling price per Mcf |
|
$3.77 |
|
|
|
$3.77 |
|
|
|
|
|
|
|
Natural Gas Swaps: |
|
|
|
|
|
|
Total Volume (Bcf) |
|
16.7 |
|
|
32.5 |
|
32.8 |
|
11.1 |
|
76.4 |
Average price per Mcf |
$3.38 |
|
$3.17 |
$3.17 |
$3.17 |
$3.17 |
Note: Volumes and prices based on a conversion factor of
1.065 MMBtu/Mcf.
About Ultra Petroleum
Ultra Petroleum Corp. is an independent energy
Company engaged in domestic natural gas and oil exploration,
development and production. The Company is listed on NASDAQ and
trades under the ticker symbol “UPL”. Additional information on the
Company is available 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. Any statement, including any opinions,
forecasts, projections or other statements, other than statements
of historical fact, are or may be forward-looking statements.
Although the Company believes the expectations reflected in any
forward-looking statements herein are reasonable, we can give no
assurance that such expectations will prove to have been correct
and actual results may differ materially from those projected or
reflected in such statements. Certain risks and uncertainties
inherent in our business as well as risks and uncertainties related
to our operational and financial results are set forth in our
filings with the SEC, particularly in the section entitled “Risk
Factors” included in our most recent Annual Report on Form 10-K for
the most recent fiscal year, our most recent Quarterly Reports on
Form 10-Q, and from time to time in other filings made by the
Company with the SEC. Some of these risks and uncertainties
include, but are not limited to, increased competition, the timing
and extent of changes in prices for oil and gas, particularly in
the areas where we own properties, conduct operations, and market
our production, as well as the timing and extent of our success in
discovering, developing, producing and estimating oil and gas
reserves, weather and government regulation, and the availability
of oil field services, personnel and equipment. Our SEC filings are
available written request to Ultra Petroleum Corp. at 400 North Sam
Houston Parkway East, Suite 1200, Houston, Texas 77060 (Attention:
Investor Relations) or on our website (www.ultrapetroleum.com) or
from the SEC on their website at www.sec.gov or by telephone
request at 1-800-SEC-0330.
For further information
contact:Sandi Kraemer Director, Investor RelationsPhone:
281-582-6613Email: skraemer@ultrapetroleum.com
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