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|Ultra Petroleum Provides Update on Horizontal Well, Asset Sales and Hedging Program|
Pinedale Horizontal Program Update
Last week, the Company announced a test rate of 21 million cubic feet equivalent per day (MMcfe/d) for its two-mile horizontal well targeting the Lower Lance A interval. Yesterday, this well achieved a 24-hour test rate of 42 MMcfe/d. Flow-back parameters include a gas rate of 38 MMcf/d, a condensate rate of 700 barrels per day and a flowing casing pressure of 3,000 psi. This morning’s spot rate is 46 MMcfe/d.
“The well has steadily increased over the past week and remains on a controlled choke. With only 17% of the frac fluid recovered to date, and flowing pressures well above normal operating pressure, we expect to manage the flow-back for several more weeks,” said
The Company is in the process of drilling two additional horizontal wells. One will test a deeper Mesaverde interval and one will be a half mile offset to the
The Company previously announced that it was exploring the divestment of its non-core assets. The Company has now engaged CIBC Griffis & Small as exclusive technical and financial advisor to assist in that process.
Ultra has increased its hedge position and will continue to opportunistically add additional hedges. The company is targeting to hedge at least 50% of production for 2018. Currently, the Company has the following NYMEX natural gas derivative transactions in place as shown in the table below:
Note: Volumes and prices based on a conversion factor of 1.065 MMBtu/Mcf.
This news release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Any statement, including any opinions, forecasts, projections or other statements, other than statements of historical fact, are or may be forward-looking statements. Although the Company believes the expectations reflected in any forward-looking statements herein are reasonable, we can give no assurance that such expectations will prove to have been correct and actual results may differ materially from those projected or reflected in such statements. Certain risks and uncertainties inherent in our business as well as risks and uncertainties related to our operational and financial results are set forth in our filings with the
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