Ultra Petroleum Provides Development Update

Ultra operated Warbonnet 5-23 in 30N-108W began producing to sales on June 2nd from 8 of 11 zones at 10.5 Mmcf/d and 125 bopd. The remaining three zones will be completed once the well has produced the initial flush volumes to avoid jeopardizing its existing productivity. The well is the third and most prolific well in the Warbonnet area on the southern end of the Pinedale Anticline. The well is a 160-acre offset to the Warbonnet 15-23 and 9-23 and is in a separate fault block. It was not carried as a proved location in Ultra's year-end 2000 reserve report. This area provides up to 63 additional locations not subject to winter drilling restrictions.

Additionally, Ultra has been honored as the "Agency / Corporation of the Year" by the Wyoming Wildlife Federation for outstanding contributions to conservation efforts in the state of Wyoming. The Wyoming Wildlife Federation stated that Ultra "has shown a significant financial and philosophical contribution to the wildlife studies on the Pinedale Anticline, Mesa, and Green River Basin Areas. In 1998, The Wyoming Wildlife Federation met with the BLM and industry representatives to discuss the potential impacts of natural gas development in the Pinedale Anticline Project Area ... To their credit, Ultra Petroleum was the ONLY corporation who stepped forward ..."

"We're excited to report that the Warbonnet 5-23 well appears to be one of the best wells ever drilled on the Anticline, greatly exceeding our expectations. And in an area with only five proved undeveloped locations booked at year-end, it emphasizes the extraordinary upside of our resource base," stated Michael D. Watford, Chairman, CEO and President. "We are also extremely grateful that our ongoing effort to balance the development of gas reserves with the protection of critical game habitat on the Pinedale Anticline has been recognized by such a strong environmental organization."