Houston-based independent Ultra Petroleum Inc. scored once again in improving its proved reserves last year, upping its stake in its gas-rich Wyoming assets 53% to 1.073 Tcfe from 2002’s total of 700.5 Bcfe. Year-end audited proved reserves included 1.02 Tcf and 8.34 million bbl, while proved-plus-probable totaled 2.1 Tcfe.

In 2003, Ultra produced 27.6 Mcf and 212 thousand bbl, or 28.9 Bcfe, a 66% increase over 2002 production. In the fourth quarter alone, Ultra produced 9.4 Bcf and 64 thousand bbl, or 9.7 Bcfe, a 59% increase from 4Q2002 — and the highest quarterly production in the history of the company. Ultra’s production replacement ratio was 1,291% for the year.

“This year’s extraordinary reserve and production growth reflects our continuing success in the delineation of the world-class Pinedale Anticline field,” said CEO Michael D. Watford. “The 2003 program wells averaged over 10 Bcfe per well of reserves with some exceeding 20 Bcfe. As we continue to add penetrations at Pinedale, our ability to accurately predict what we’ll find has increased. Since acquiring the 3-D seismic, we’ve yet to drill a well at Pinedale that doesn’t have commercial quantities of gas.”

Ultra also set its 2004 capital budget at $190 million, with $160 million targeted for continued exploration and development in Wyoming, a 45% increase over 2003 Wyoming expenditures. The plan anticipates participating in approximately 80 gross wells in Wyoming and three-to-five exploration/appraisal wells in Bohai Bay, offshore China, as well as continued development of the already discovered fields, of which the first two are anticipated to begin production in the 2nd half of 2004.

Based on the approved budget, Ultra expects annual production from Wyoming to reach 40 Bcfe for 2004, a 38% increase over 2003 levels.

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