Ultra Petroleum Corp had made an announcement of its acquisition of Uinta Basin-based properties today. Ultra said it had entered into a definitive agreement to acquire oil-producing properties located in the Colorado Plateau province for USD650 million. The acquisition deal was expected to be finalized in December of this year, and would be financed using subsidiary and parent-level debt,
Ultra's Chairman, President and Chief Executive Officer Michael Watford said, "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."
Listed under the ticker symbol "UPL" on the New York Stock Exchange, Ultra had been developing natural gas preserves in the Wyoming area. The company had also been involved in the early and development exploration of reserves in the Pennsylvanian region.
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