Replies to This Discussion

Permalink Reply by Lynn Wigglesworth on May 13, 2010 at 8:24am

Are you leased with East? They have been working with Ultra in western Tioga Co. for a couple of years. Ultra owns many of the wells, but some are a joint venture with East. I always thought it was Ultra that was strapped for cash, but now I wonder.

Permalink Reply by Ann Ticopa on May 13, 2010 at 9:23am

Ultra Resources is a wholly-owned subsidiary of Ultra Petroleum, which did turn a profit in the first quarter ... but lost $512.6 million last year.

From the Ultra Petroleum website:

"Ultra Petroleum is expanding its footprint across the United States to the Northeast, focusing on an emerging Marcellus Shale opportunity in Pennsylvania. As of year-end 2009, Ultra Petroleum’s legacy Marcellus position consists of 320,000 gross (170,000 net) acres of leases across five counties in north central Pennsylvania: Potter, Tioga, Bradford, Lycoming and Sullivan counties. Ultra has 100 percent working interest in 30,000 acres in Tioga and Potter counties. Ultra and its joint venture partner share an area of mutual interest (AMI) consisting of approximately 290,000 acres with a 50/50 working interest. In 2008, Ultra planted $35 million in seed capital, drilling 18 vertical wells to evaluate the acreage geologically. Based on encouraging well data analysis results, Ultra Petroleum and its joint venture partner are escalating activity in the region. In 2009, Ultra Petroleum spent $135 million, commencing a 30+ horizontal-well drilling program, more than doubling to over $400 million in 2010.

In an effort to increase the resource potential in the Northeast, Ultra Petroleum recently acquired 160,000 gross (80,000 net) acres with a 50/50 working interest. Following the acquisition, Ultra holds approximately 250,000 net acres in the Marcellus Shale, with the potential for 1,800 net drilling locations and 8.0 Tcfe of net resource potential."

http://www.ultrapetroleum.com/Our-Properties/Appalachian-Basin-16.html

To fund the 80.000 acre purchase:

"Ultra Petroleum's wholly owned subsidiary Ultra Resources has entered into an agreement with a group of thirteen institutional investors providing for the private placement of $500.0 million in Senior Unsecured Notes.

Closing of the offering is anticipated to occur prior to mid-February 2010. Net proceeds from the offering will be used to repay existing bank debt and for general corporate purposes, including funding of the company's previously announced acquisition."

http://www.rigzone.com/news/article.asp?a_id=84635

Permalink Reply by Wm. Robert Blackwell on May 13, 2010 at 9:01am

I am "in talks" with East.. the Landman I was talking to somehow vanished so I phoned East directly and have been making out fairly well. Not really sure what to make of this letter though. I border the state game lands, and wonder if Ultra is looking to drill there?