Boston, MA 10\/22\/2013 (wallstreetpr) –\u00a0Ultra Petroleum Corp. (NYSE:UPL) has announced that it is purchasing oil-producing land in Uinta Basin, Utah. The deal is expected to cost the company $650 million and is expected to close by December, 2013. \u00a0Ultra will be funding the acquisition through debt. The property is already producing 4000 barrels per day from 38 wells. \u00a0The asset has net risked reserves of more than 90 MMBO (Million Barrels of Oil). The company is also looking at synergies in operations as the Uinta Basin has the same geological characteristics as its asset in Pinedale. This will enable the company to apply its advanced drilling techniques in Uinta Basin. The investment has positive cash flows from the first year and will pay for itself in the next five years, according to the company\u2019s estimates. It will generate good cash profits for the balance period. The asset will also give profitable growth even if the crude oil prices fall below the $75 range. Oil prices have remained well over $100 per barrel for the current year.<\/p>\n
Ultra is an independent oil and gas exploration and production company. It has assets in Pinedale and Jonah fields in Green River Basin, and is in the process of developing Appalachian basin in Pennsylvania. It is considered to be the lowest-cost producer in the U.S. \u00a0The U.S. energy consumption is decreasing but there is strong demand from other countries. Exports also yield better price realizations than domestic supplies. There is an increase in number of export terminals to cater to this demand. Advanced drilling techniques, like horizontal drilling, and hydraulic fracturing, are reducing cost of production. Natural gas is also being promoted as a substitute fuel in the transportation industry in the U.S. Ultra is on the right track to take advantage of these trends.<\/p>\n
The stocks were trading at $20.89 per share at the end of trading on October 21, 2013.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 10\/22\/2013 (wallstreetpr) –\u00a0Ultra Petroleum Corp. (NYSE:UPL) has announced that it is purchasing oil-producing land in Uinta Basin, Utah. The deal is expected to […]<\/p>\n","protected":false},"author":15,"featured_media":10828,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[3595,3596,3594,3597],"stock_ticker":[],"class_list":["post-10827","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-nyseupl","tag-ultra-petroleum-corp","tag-ultra-petroleum-corp-nyseupl","tag-upl","entry"],"acf":[],"yoast_head":"\n