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Ultra Petroleum Corp.Ultra Petroleum Corp.Michael D. WatfordMichael D. Watford
Chairman, President & CEOChairman, President & CEO
Bohai Bay Bohai Bay
ChinaChina
Green River Green River Basin Basin
WyomingWyoming
Ultra HighlightsUltra Highlights
Hundreds of long-life natural gas drilling locations
Exciting International exploration and development
High rate of return projects
Exceptional drilling success rate – 95% since ‘00
Industry leading reserve and production growth
0
200
400
600
800
1000
1200
1999 2000 2001 2002 2003
Bcf
eWyoming Reserve GrowthWyoming Reserve Growth
95% CAGR
Production GrowthProduction Growth
-
5,000
10,000
15,000
20,000
25,000
30,000
1999 2000 2001 2002 2003
MM
cfe 57% C
AGR
Year 2003 ResultsYear 2003 Results
$116 mm capital expenditures$116 mm capital expenditures
53% reserve growth to 1,073.4 bcfe53% reserve growth to 1,073.4 bcfe
66% annual production growth to 28.9 bcfe66% annual production growth to 28.9 bcfe
$0.29 / Mcfe Finding & Development Cost
1,390% Reserve Replacement Ratio
37 year Reserve to Production Ratio
Year 2004Year 2004
$190mm capital budget$190mm capital budget
38% production growth – 40 bcfe38% production growth – 40 bcfe
20% reserve growth – 1,300 bcfe20% reserve growth – 1,300 bcfe
80 Gross wells – Wyoming
3-5 exploration / appraisal wells in China
Begin Production at CFD 11-1/11-2
Green River Basin, WyomingGreen River Basin, Wyoming
Land position
178,000 gross acres
101,000 net acres
Operate over 60% of
acreage
Average WI >50%
3,200 net producing acres
Largest interest owner on
Pinedale Anticline
As of December 31, 2003Jonah Field
PinedaleAnticline
Field
TD 7395 NCNT0
LabargeLabargePlatformPlatform
Lance Sand Fairway25 Miles Wide
25 sq. miles~500 Wells
750+ MMcfd
Field OGIP = 10 Tcf*Field OGIP = 10 Tcf*
Recoverable = 8.5 Tcf*Recoverable = 8.5 Tcf**source EnCana*source EnCana
Jonah Field
75 sq. miles75 sq. miles~210 Wells~210 Wells
400 + MMcfd400 + MMcfd
Field OGIP = ? TcfField OGIP = ? Tcf
Recoverable = ? TcfRecoverable = ? Tcf
Lance Tight Gas Sand FairwayLance Tight Gas Sand FairwayPinedale Anticline
Field
Pinedale / Jonah ComparisonPinedale / Jonah Comparison
11,0007,000Average BottomHole Pressure (psi)
5,0002,200Average CompletedInterval (ft)
48,00016,000ApproximateProductive Acres
PINEDALEJONAH
ProducingWell EUR (BCF)
6.0 10.0
Typical Pinedale Well Production Typical Pinedale Well Production Profile Profile
0
2
4
6
8
10
0 1 2 3 4 5 6 7 8 9 10
YEARS OF PRODUCTION
MMcf/dAVERAGE DAILY PRODUCTION
30+ yrs
> 20% EUR
Ultra’s Pinedale Well EconomicsUltra’s Pinedale Well Economics
Typical Pinedale Well:$3.00/Mcf
Well cost: $4.1 MM
Reserves / well: 10 Bcfe
ROR: 53%
F&D cost: < $0.50/Mcfe
Pay out: 1.9 years
Reserve life: 40 years
IRR
(%
)
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
$5.00
UPL
EV
G
APA BR
Y
UC
L
BR
CW
EI
NE
V
MU
R
SFY
NB
L
KM
G
WR
C
PQU
E
CPE
Cost/Mcfe Median
Ultra Cost Structure ComparisonUltra Cost Structure ComparisonTotal Costs 2002 - $/McfeTotal Costs 2002 - $/Mcfe
Source – Wachovia
UPL #1 at $1.61 / Mcfe
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
$1.80
$2.00
UPL
WG
RK
WB
RY
KM
GA
PAN
EVD
VN
UN
TSW
NSF
YD
NR
MU
RC
HK
PEN
EPL
CO
GW
RC
SGY
PPP
CW
ET
HX
RR
CT
MR
$/Mcfe
Median
Ultra Cost Structure ComparisonUltra Cost Structure ComparisonF&D Costs 1998-2002F&D Costs 1998-2002
Source - Wachovia
UPL #1 at $0.25 / Mcfe
Pinedale ReservePinedale ReserveGrowthGrowth
YE 2001• 447 locations on 17,780 UPL acres• Avg location 6.4 Bcf - 2.85 gross Tcf
YE 1999• 187 locations on 7,480 UPL acres• Avg location 4.9 Bcf - 0.92 gross Tcf
Based on NSAI Reserve Reports
YE 2003• 636 locations on 25,440 UPL acres• Avg location 7.4 Bcf - 4.7 gross Tcf
UPL Acreage4-6 BCF6-8 BCF
8-10 BCF10-12 BCF12-14 BCF14-16 BCF16-18 BCF18-20 BCF
20+ BCF
Additional OpportunitiesAdditional Opportunities
What’s not in NSAI’s Pinedale Anticline numbers
East / West Expansion
Mesaverde
20 acre downspacing
Other Horizons
Pinedale 3D Pinedale 3D Mesaverde IntervalMesaverde Interval
Ultra Interest Mesaverde Tests
Seismic Amplitude from 3D Data
2002 - 16 wells2003 - 54 wells
Increased Density Increased Density Drilling – PinedaleDrilling – Pinedale
WOGCC recognizes common Lance Pool at Jonah and Pinedale. Data from Jonah applicable to submissions in Pinedale.
Jonah 20-acre Pilot complete. 5 and 10-acre Pilots in progress.
Pinedale Increased Density Pilot Projects (20-acre) approved in 2003 for Ultra and Anschutz.
Pilot well drilling initiated
Existing EIS provides for drilling of Increased Density Wells.
Pilot Areas
Bohai Bay, ChinaBohai Bay, China
• Nine fields discovered to date
• Development underway
• Huge Acreage position – 1,100 square miles
• Lightly explored – only 49 exploration wells
• China’s most prolific basin – 10+ BBO
• Remaining appraisal & exploration potential
• 15-18.2% exploration interest- 9-10% net Reserves
Bohai Bay, ChinaBohai Bay, ChinaDevelopment UpdateDevelopment Update
• 11-1 / 11-2 Fields Under Development• Platforms Set, wells drilling, • FPSO under construction• First Oil in late 2004
• 11-3 / 11-5 Fields • Oil in Place report approved for 11-3/11-5• ODP approval expected Q4 2004 • First Oil late 2005-early 2006
• 12-1 / 12-1S / 11-6 Fields• OIP reports to be submitted Q2 ’04• ODP approval expected Q4 ’04• First Oil late 2006
Bohai Bay BlocksBohai Bay Blocks
Bohai Bay Blocks DevelopmentBohai Bay Blocks Development
Fields
CFD 11-1 / 11-2 Fields 130 - 180 04/36 Q4 2004
CFD 11-3 / 11-5 40 - 80 04/36 Q4 2005
CFD 12-1 100 - 135 05/36 Q4 2006
CFD 12-1S 25 - 45 05/36 Q4 2006
CFD 11-6 100 - 100 04/36 Q4 2006
CFD 2-1 30 - 50 04/36
CFD 16-1 20 - 50 04/36
TOTAL 445 - 670
GrossGrossReservesReservesPotentialPotentialMMBOEMMBOE BlockBlock
Est Date of First Oil
11-1 / 11-2 Field DevelopmentBohai 8 Drilling Rig Drilling Production Wells
11-1 / 11-2 Field DevelopmentBow of FPSO under construction
11-1/11-2 Field DevelopmentFPSO Stern Being Fitted with Power and Separator Modules
11-1/11-2 Field DevelopmentUnion of FPSO Bow & Stern
-10,00020,00030,00040,00050,00060,00070,00080,00090,000
1999 2000 2001 2002 2003 2004 E 2005 E 2006 E
MMcfe
Wyoming production CFD 11-1 & 11-2
Annual Production Growth
CAGR ~49%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
1999 2000 2001 2002 2003 2004 E 2005 E 2006 E
Bcf
eProved Reserve Growth
CAGR ~58%
Positioned for Growth
Extraordinary project inventory
Unmatched organic growth
High rate of return projects
Experienced management
Ultra Petroleum Corp.
Listed: American Stock Exchange Symbol: UPLToronto Stock Exchange Symbol: UP
Issued Shares: 74,776,168 This report contains or incorporates by reference forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts included in this document, including without limitation, statements in Management's Discussion and Analysis of Financial Condition and Results of Operations regarding our financial position, estimated quantities and net present values of reserves, business strategy, plans and objectives of the Company's management for future operations, covenant compliance and those statements preceded by, followed by or that otherwise include the words "believe", "expects", "anticipates", "intends", "estimates", "projects", "target", "goal", "plans", "objective", "should", or similar expressions or variations on such expressions are forward looking statements. The Company can give no assurances that the assumptions upon which such forward-looking statements are based will prove to be correct nor can the Company assure adequate funding will be available to execute the Corporation's planned future capital program. Other risks and uncertainties include, but are not limited to, fluctuations in the price the Company receives for oil and gas production, reductions in the quantity of oil and gas sold due to increased industry-wide demand and/or curtailments in production from specific properties due to mechanical, marketing or other problems, operating and capital expenditures that are either significantly higher or lower than anticipated because the actual cost of identified projects varied from original estimates and/or from the number of exploration and development opportunities being greater or fewer than currently anticipated and increased financing costs due to a significant increase in interest rates. Full details regarding the selected financial information provided above will be available in the Company's annual report and in the Annual Information Form to be filed under the cover of 10-K, also available from the Company at 363 N. Sam Houston Pkwy E., suite 1200, Houston, TX 77060. You can also obtain this form from the SEC by calling 1-800-SEC-0330.
363 N Sam Houston Pkwy E, Suite 1200Houston, TX 77060
281-876-0120281-876-2831 Fax
www.ultrapetroleum.com