Ultra Petroleum Continues Success in Bohai Bay, China

Ultra Petroleum's subsidiary Sino-American Energy, has participated in two additional successful wells in Block 04/36. The CFD 11-6-1 exploration well had multiple oil bearing sandstone reservoirs in the Minghuazhen and Guantao formations, discovering a new field. This well is located approximately 4 km southwest of the successful 12-1-7 field appraisal well. The CFD 11-6-2 appraisal well, drilled approximately 4 km NNE of the 11-6-1 well also encountered multiple Minghuazhen and Guantao reservoirs containing light gravity oil.

The company says its Bohai Bay results in the CFD 12-1-7, 11-6-1 and 11-6-2 wells have proven that the previously defined CFD 12-1 field was merely the tip of the iceberg. Previous maps had 3,900 acres of structural closure at the 12-1 field. The recent wells proved a 9 km westward expansion of the 12-1 structural trend, effectively doubling the structure to more than 9,000 acres. The 12-1 / 11-6 complex may be the largest found to date on the Blocks. "We remain on schedule and budget for first oil from the CFD 11-1/11-2 fields in the second half of next year. These latest discoveries and extensions bode well for potentially significant production increases in 2005 and beyond," stated Michael D. Watford, Ultra's Chairman, President and CEO.