We are strategically adding a second core property to our asset portfolio that enables us to deliver the best combination of growth and financial returns.

Ultra Petroleum is poised to become a significant player in the Marcellus Shale through its large, contiguous blocks of acreage.

Ultra Petroleum is expanding its footprint across the United States to the Northeast, focusing on an emerging Marcellus Shale opportunity in Pennsylvania. As of year-end 2009, Ultra Petroleum’s legacy Marcellus position consists of 320,000 gross (170,000 net) acres of leases across five counties in north central Pennsylvania: Potter, Tioga, Bradford, Lycoming and Sullivan counties. Ultra has 100 percent working interest in 30,000 acres in Tioga and Potter counties. Ultra and its joint venture partner share an area of mutual interest (AMI) consisting of approximately 290,000 acres with a 50/50 working interest. In 2008, Ultra planted $35 million in seed capital, drilling 18 vertical wells to evaluate the acreage geologically. Based on encouraging well data analysis results, Ultra Petroleum and its joint venture partner are escalating activity in the region. In 2009, Ultra Petroleum spent $135 million, commencing a 30+ horizontal-well drilling program, more than doubling to over $400 million in 2010.

In an effort to increase the resource potential in the Northeast, Ultra Petroleum recently acquired 160,000 gross (80,000 net) acres with a 50/50 working interest. Following the acquisition, Ultra holds approximately 250,000 net acres in the Marcellus Shale, with the potential for 1,800 net drilling locations and 8.0 Tcfe of net resource potential.