Ultra Petroleum Reports Doubling Of Proved Reserves

Business Wire, Feb 20, 2001

Business Editors

HOUSTON--(BUSINESS WIRE)--Feb. 20, 2001

Ultra Petroleum (AMEX:UPL) (TSE:UP.) today announced that December 31, 2000 proved reserves increased 125% over year end 1999, achieving an unprecedented 1699% production replacement ratio.

Year-end proved reserves were 168 Bcfe, compared to 75 Bcfe at December 31, 1999. Established reserves (proved plus 50% probable) were 314 Bcfe. Year-end SEC PV-10 of estimated future net revenues from proved reserves discounted at 10% was $493.2 million. Substituting a Henry Hub natural gas price of $4.00/mcf revises this value to $186.9 million, a $145.6 million increase over the 1999 year-end results. Reserve life is calculated at over thirty years.

"With a doubling of proved reserves in 2000, we continue to make good on our commitment of providing exceptional growth. Ultra expects to double proved reserves again in 2001 through an aggressive drilling program in Wyoming and Bohai Bay, China. Our current market value closely approximates our 2000 year end PV-10 value of established reserves at $4.00/mcf Henry Hub price - $266.7 million. We look forward to our valuation increasing as we attain our goal of again doubling proved reserves in 2001," stated Michael D. Watford, Chairman, CEO and President.

                          2000 Reserves
                          -------------
                                   MMCFE  SEC PV-10 PV-10 $4.00
                                              ($m)       ($m)
                                 ------- ---------- -----------
Proved                           168,130   $493,243    $186,942

Probable                         292,454   $538,784    $159,459
                                 ------- ---------- -----------
Total                            460,584 $1,032,027    $346,401
Established (Proved   50%
 of Probables)                   314,357   $762,635    $266,672

Ultra Petroleum is an independent, exploration and production company focussed on developing its natural gas and oil resources in the Green River Basin of Wyoming, and Bohai Bay, offshore China. Ultra is listed on the American Stock Exchange under the ticker "UPL" and on the Toronto Stock Exchange under the ticker "UP" with 72,716,418 shares outstanding.

This material includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The opinions, forecasts, projections or other statements, other than statements of historical fact, are forward-looking statements. Although the companies believe that the expectations reflected in such forward-looking statements are reasonable, they can give no assurance that such expectations will prove to have been correct. Certain risks and uncertainties inherent in their businesses are set forth in their filings with the Securities and Exchange Commission.