Ultra Petroleum Announces $425 Million Capital Budget for 2006

Ultra Petroleum says that the company's Board of Directors approved the 2006 capital budget of $425 million, an increase of 47 percent over the $290 million currently forecast for 2005. Of the total budget, 93 percent or $395 million, will be spent developing and further delineating the company's Pinedale Anticline property. During 2006, Ultra anticipates participating in the drilling of approximately 165 new wells at Pinedale. The increased capital budget program is expected to be funded by internally generated cash flow.

"Once again, Ultra will experience a very active drilling program in 2006," stated Mike Watford, Chairman, President and Chief Executive Officer. "We expect production to grow by approximately 33 percent to roughly 95 Bcfe through the execution of our most aggressive drilling program yet. We are confident that with a flat capital program over the next three years that we can double production from our Pinedale operations. With over a decade of identified drilling opportunities in conjunction with our low cost structure, we are poised to continue delivering industry leading performance for numerous years."