Ultra Petroleum's Proved Reserves Increase 42%

Ultra Petroleum reports that year-end 2004 corporate proved reserves were 1.528 Tcfe, a 42% increase over year-end 2003 reserves, as prepared by Ultra's third party independent reserve consultants. Year-end 2004 proved reserves include 1.41 Tcf of natural gas and 18.98 million barrels of oil. Proved plus probable reserves at year-end 2004 totaled 3.5 Tcfe. Estimated future net revenue from proved reserves discounted at 10% ('SEC PV-10') was $2.5 Billion based on year-end Opal, WY price of $5.54 per million BTU or $5.46 per wellhead Mcf, $42.80 per wellhead barrel in southwest Wyoming and $29.46 per barrel for our Bohai Bay crude.

Proved reserves from the Company's Wyoming properties were 1.482 Tcfe, with 1.414 Tcf of natural gas and 11.4 million barrels of condensate. Only those locations included in the Company's budgeted three year drilling plan are included as proved undeveloped reserves in the report. Locations that are not in the three year budget, but would otherwise be classified as proved are included in the probable category. The proved plus probable reserves totaled 3.4 Tcfe. The Wyoming reserve report was prepared by Netherland, Sewell & Associates, Inc. Proved reserves from Ultra's first two producing fields in Bohai Bay China, CFD 11-1 / 11-2, totaled 7.6 million barrels and proved plus probable reserves totaled 12.3 million barrels. The China reserve report was prepared by Ryder Scott Company. Additional information about Ultra's year- end 2004 reserves are available at

During 2004 Ultra produced 49.3 Bcfe, comprised of 43.7 Mcf of natural gas and 350 thousand barrels of oil from the Wyoming properties and 593 thousand barrels from Bohai Bay, a 71% increase over 2003 production. During the 4th quarter of 2004 Ultra produced 14.1 Bcf of gas and 108 thousand barrels of oil from Wyoming and 382 thousand barrels from Bohai Bay, or 17.0 Bcfe, a 75% increase over 4th quarter production in 2003 and the highest quarterly production in the history of the Company. Ultra's production replacement ratio was 1021% for the year ended 2004. Due to projected escalation in future development costs in the reserve report, Ultra expects that the DD&A rate for the Wyoming properties will increase to the range of $0.65 - $0.72 per Mcfe for the full year and should remain at that level for 2005.

"Again in 2004, Ultra delivered what is likely the industry's highest organic proved reserve growth both in percentage terms and in absolute Bcf's. Additionally, all of the locations we drilled in 2004 that were in the 2003 reserve report were successes, further highlighting the low risk nature of our asset base in Wyoming. This year's 2P reserve growth reflects the initial stages of our efforts to define the impact from 20-acre spacing and the deeper Mesaverde section at Pinedale as well as the downspacing to 10-acres at Jonah. We have more than doubled our undrilled locations in Wyoming to 1,262 giving us over a decade of drilling at current pace. Despite the impressive increase in reserves, we believe the risk profile of our reserve base has been reduced. In accordance with Ultra's three year planning and budgeting cycle, proved undeveloped reserves include only economic locations that are offsets to producing wells and are forecast to be drilled and on production during the next three years.

"With almost three and a half Tcfe of net proved and probable reserves, we are positioned to easily deliver industry leading organic proved reserve and production growth over the next several years. And as we finish gathering the necessary data from the 20 acre pilot programs at Pinedale, we'll have a much clearer picture of how large the reserves from the currently identified fairway may become," stated Michael D. Watford, Chairman, President and CEO.