Ultra Enjoys Continued Success in Bohai Bay

Ultra Petroleum reports 100% success to date in the exploration and appraisal drilling program on blocks 04/36 and 05/36 in Bohai Bay, China. Since acquiring the Bohai Bay interests in January, the company, through its wholly owned subsidiary Sino-American Energy Corporation has participated in a total of nine wells: eight field appraisal wells and one exploration well. Drilling continues, with up to 6 additional appraisal and exploration wells planned over the next several months.

Ultra Petroleum holds an 18.2% foreign contractor's interest on block 04/36, and 15% interest in 05/36. Other partners in Bohai Bay are Kerr McGee Corp. operating partner on block 04/36 with an 81.8% interest and block 05/36 with a 50% interest. Newfield Exploration Company holds the remaining 35% interest in 05/36. The Chinese National Offshore Oil Company has the right to participate in up to a 51% interest in any development of the two blocks.