HOUSTON, Oct. 21, 2013 /PRNewswire/ -- Ultra Petroleum Corp. (NYSE: UPL) today announced that the company has signed a definitive purchase and sale agreement to acquire oil-producing properties located in the Uinta Basin for $650.0 million. Ultra Petroleum expects to finance the acquisition through debt at the subsidiary and parent level. Ultra anticipates the transaction will close December 2013, subject to closing adjustments and customary terms and conditions, with an effective date of October 1, 2013.
"This oil acquisition fits our strategy of profitable growth with exceptional returns at oil prices well below $75 per barrel. As operator with 100 percent working interest, we will apply the same drilling techniques used in Pinedale due to similar geologic characteristics. The asset is cash flow positive starting in year one and completely pays for itself in five years followed by decades of free cash flow," stated Michael D. Watford, Chairman, President and Chief Executive Officer.
Acquisition Opportunity Highlights
- Uinta Basin oil-producing properties in northeast Utah
- Operated asset with 100% working interest
- Current net production of 4,000 barrels of oil per day from 38 producing wells
- Net risked reserves of 90+MMBO
- Self-funding development immediately in year one
- De-risked acreage position with stacked pay potential
Conference Call Webcast Scheduled for October 21, 2013
Ultra will host a conference call on Monday, October 21, 2013, at 10:00 a.m. Eastern Daylight Time (9:00 a.m. Central Daylight Time) to discuss the company's strategic acquisition. Participants may access the conference call by dialing (800) 901-5213 or (617) 786-2962 for international calls using participant passcode 31722595.
To listen to the live audio webcast over the Internet, log on to www.ultrapetroleum.com and follow the link to the webcast. The webcast replay and podcast will be archived on Ultra's website through February 20, 2014.
Please click here to view a presentation containing supplemental acquisition information.
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 – and is in the early exploration and development stages in the Appalachian Basin of Pennsylvania. Ultra is listed on the New York Stock Exchange and trades under the ticker symbol "UPL". The company had 152,977,633 shares outstanding on September 30, 2013.
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, forecasts, projections or other statements, other than statements of historical fact, are forward-looking statements, including any statements about the closing of the transaction, estimates of reserves related to the properties, and financing alternatives. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, the company can give no assurance that such expectations will prove to have been correct. Certain risks and uncertainties inherent in the company's businesses are set forth in its filings with the Securities and Exchange Commission ("SEC"), particularly in the section entitled "Risk Factors" included in its Annual Report on Form 10-K for the most recent fiscal year and from time to time in other filings made by the company with the SEC. These risks and uncertainties include, but are not limited to, increased competition, the timing and extent of changes in prices for oil and gas, the timing and extent of the company's success in discovering, developing, producing and estimating reserves, the effects of weather and government regulation, availability of oil field personnel, services, drilling rigs and other equipment, as well as other factors listed in the reports filed by the company with the SEC. The SEC permits oil and gas companies to disclose only proved, probable and possible reserves in filings with the SEC. The information about reserves presented in this news release, which reflects estimates prepared by the company's internal reserve engineers, includes a reference to net risked reserves, which is a term the SEC does not allow oil and gas companies to include in their SEC filings. Investors are urged to review the reserve disclosures in the company's filings with the SEC, which are available on the company's website or at the SEC's website at www.sec.gov.
SOURCE Ultra Petroleum Corp.