Ultra Petroleum’s contiguous acreage position easily allows for the formation of producing units and execution of a horizontal-development program.
To date, Ultra Petroleum’s drilling program has successfully assessed nearly its entire legacy area, which spans 40 miles wide and 30 miles north to south. The Company believes that the drilling activity thus far has broadly evaluated its position and de-risked its acreage holdings geologically. Through its extensive geologic evaluation, the Company believes that the additional acreage acquired through the acquisition that extends to the southwest of Ultra’s legacy position has the potential to rival the returns of the Company’s legacy Wyoming and Pennsylvania assets. In assessing the resource potential of this new discovery, the current gas in place estimate for the Marcellus Field, according to a recent study conducted by researchers at Penn State University and State University of New York at Fredonia, is believed to be between 168 and 516 Tcf. Of this amount, as much as 50 Tcf of gas can be recovered over time.
