Ultra Boosts Q1 Production by 42%

Ultra Petroleum Corp. on Friday reported the largest quarterly production in the company's history. Production for the first quarter of 2007 increased 42 percent to a record 28.5 billion cubic feet equivalent (Bcfe) from the first quarter of 2006. Production in Wyoming alone, at the company's core asset, increased over 50 percent.

Additionally, Ultra has added to its calendar 2008 natural gas hedge position. Currently, Ultra has hedged 100,000 mmbtu/day at $7.41/Mcf or $6.83/mmbtu. The sales point for the natural gas hedges is the Opal, Wyoming hub.

On April 19, FERC approved the Rockies Express Pipeline (REX). REX will move gas from the Rockies to the Midwest and eventually the Northeast and will significantly increases the take-away capacity for natural gas in the Rockies. It is expected to be operational during the first quarter of 2008.

"We continue to set company production records at the industry's lowest cost structure. Our attractive margins will only improve with construction of Rockies Express and the reduction of basis differentials already being priced into the forward market for natural gas. With Wyoming natural gas prices near $7.50/Mcf for 2008 and our 27 year drilling inventory, we are well positioned," commented Michael D. Watford, Chairman, President and Chief Executive Officer.

The public comment period for the Draft Supplemental Environmental Impact Study (SEIS) for the Pinedale Field that was issued by the Bureau of Land Management (BLM) in late December 2006, closed April 6. It is anticipated that the BLM will issue the Record of Decision during the third quarter of 2007. When this occurs, Ultra would gain access to additional acreage year round commencing in the 2007-2008 winter drilling season. This would allow for accelerated development of the field and a significant increase in the annual number of wells drilled.

Production volumes for the quarter are as follows:

                                                  Three months ended
                                         March 31, 2007        March 31, 2006
    Oil liquids (Bbls) - Domestic               193,507               128,411
    Oil liquids (Bbls) - China                  417,585               466,145
    Natural Gas (Mcf) - Domestic             24,819,436            16,531,259
    Total Production (Mcfe)                  28,485,988            20,098,595

Ultra Petroleum is an independent, exploration and production company focused on developing its long-life natural gas reserves in the Green River Basin of Wyoming, and crude oil reserves in Bohai Bay, offshore China.