Ultra Begins First Sale of Oil From China Fields

Ultra Petroleum reports, through its wholly-owned subsidiary, Sino-American Energy, initial oil sales commenced from its first two fields brought on production in Bohai Bay, China. The oil production from the CFD 11-1 and 11-2 fields were loaded in two separate cargos during September 2004. Volumes attributable to Ultra's interests for these two cargos total slightly over 300,000 barrels.

In Wyoming, three Pinedale Anticline wells of note commenced production, individually breaking all previous initial production records. Combined, the three wells produced a gross total of more than 103 MMcfe/d. The Riverside 4D-3D tested at 32.6 MMcfe/d, the Riverside 1-3D tested 32.4 MMcfe/d, and the Riverside 2-3D tested at an average 38.1 MMcfe/d. Ultra operates the Riverside 4-3D, and holds an interest in the other two wells operated by Shell.

"We are pleased to announce first oil sales from our China properties, marking the beginning of cashflows from the project. Production from our first two fields started in mid-July and is currently approximately 30,000 barrels of oil per day, of which Ultra is entitled to about 10%. Field productivity continues to exceed preproduction expectations. Additionally, these three Pinedale wells demonstrate the growing productivity of the Lance/Mesaverde interval in the field and highlight the continued improvements in completion techniques," stated Michael D. Watford, Ultra's Chairman, President and CEO.

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