Ultra Petroleum sets $755 million capital budget

Feb. 22, 2008
Houston independent Ultra Petroleum Corp. approved a 2008 capital budget of $755 million compared with $714.5 million spent in 2007.

By OGJ editors
HOUSTON, Feb. 22 -- Houston independent Ultra Petroleum Corp. approved a 2008 capital budget of $755 million compared with $714.5 million spent in 2007.

Ultra expects its 2008 production will reach 135-140 bcf of gas equivalent, 18-22% higher than its 2007 production. Ultra plans to drill 26 delineation wells in 2008 under its 5-year plan to drill 120 delineation wells.

Michael Watford, chairman, president, and chief executive officer, said the company plans to drill 240 gross (113 net) wells in Wyoming. About 20% of the net wells will be devoted to delineation.

"It is extremely important for us to continue defining the Pinedale field so we can get our arms around the actual size of the resource," Watford said.

Ultra develops long-life natural gas reserves in the Pinedale and Jonah fields. The company increased its 2009 production target to 170-175 bcf of gas equivalent from its previously announced target of 160-165 bcf of gas equivalent.