Ultra Petroleum Increases 2002 Reserves

Ultra Petroleum announced that December 31, 2002 proved reserves from its Wyoming properties were 700.5 Bcfe, a 58% increase over year-end 2001, exceeding management's target of 660 Bcfe. Year-end proved reserves were 667.1 Bcf of natural gas and 5.56 million barrels of oil, or 700.5 Bcfe, compared to 444.7 Bcfe at year-end 2001. Proved plus probable reserves at December 31, 2002 were 1.42 Trillion cubic feet equivalent (Tcfe). The SEC estimated future net revenue from proved reserves discounted at 10% was $473.5 million based on year-end wellhead price of $2.94 /Mcf.

During 2002, Ultra produced 16.5 Bcf of natural gas and 147 thousand barrels of oil, or 17.4 Bcfe, a 43% increase over 2001 levels. For the 4th quarter of 2002, Ultra produced 5.8 Bcf of gas and 49 thousand barrels of oil, a 77% increase over 4th quarter 2001 levels and the highest quarterly production in Ultra's history. Ultra achieved a production replacement ratio of 1,483% for the year ended 2002.

On January 17, 2003, the Board of Directors of Ultra Petroleum Corp. approved the 2003 capital budget of $70 million, with $50 million targeted for exploration and development activities in Wyoming and the balance for exploration and development operations in Bohai Bay, China. The plan anticipates participating in approximately 25 wells in Wyoming and 5-8 exploration/appraisal wells in China along with the initial development wells in the CFD11-1/11-2 development program.

"The Pinedale Anticline field keeps exceeding our expectations. As we continue to define the scale and scope of the field, we are more and more confident that we have a multi-Tcf potential resource base at Pinedale. In Wyoming in 2002, we had a perfect record and, in most of the 26 wells, found more reserves than we anticipated. This past year's drilling program began to define the potential of the deeper Mesaverde sands, as we deepened 16 of the 26 wells successfully into this horizon. The data we have gathered from the wells and their production histories will establish what may be significant reserve additions in the future. Over the past four years we have grown proved reserves sixteen-fold and our success in 2002 solidifies Ultra's foundation which will continue to deliver industry leading reserve and production growth for many years," stated Michael D. Watford, Chairman, CEO and President.