Ultra Petroleum Reports 2008 Proved Reserves of 3.52 Tcfe, an 18 Percent Increase, or 21 Percent on a Per Share Basis, and All-In F&D Cost of $1.39 Per Mcfe With 470 Percent Organic Reserve Replacement Ratio



    
    - 2008 proved reserves increase to 3.52 Tcfe from 2.98 in 2007

    - 2008 total 3P reserves increase to 11.66 Tcfe from 10.74 Tcfe in 2007

    - 2008 all-in F&D costs of $1.39 per Mcfe

    - Undrilled inventory grows to 5,570 locations

    
    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 www.sec.gov.
    





    




For further information:

For further information: Kelly L. Whitley, Manager Investor Relations of
Ultra Petroleum Corp., +1-281-876-0120, ext. 302, info@ultrapetroleum.com Web
Site: http://www.ultrapetroleum.com


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