Ultra Petroleum Takes $650M Stake In Utah's Uinta Basin

Uinta Basin drilling at night [Wikipedia image]
Ultra Petroleum is expanding its operations into Utah. The North Houston-based company announced it is purchasing a tract of oil-producing land for $650 million.

The properties are located in the Uinta Basin in northeast Utah. Company officials say the properties currently produce about 4,000 barrels of oil per day from thirty-eight wells. The deal gives Ultra a 100% working interest in the tract.

Company CEO Michael Watford says the properties should be able to turn a strong profit, even if oil prices fall below $75 a barrel. Watford addressed investors in a conference call earlier today.

“What I really like is the asset is immediately self-funding in year one and pays for itself in about five years.”

The deal is expected to close in December.

Bio photo of Andrew Schneider

Andrew Schneider

Business Reporter

Andrew Schneider joined KUHF in January 2011, after more than a decade as a print reporter for The Kiplinger Letter...