Here is more information on Ultra Petroleum’s (UPL) new leasehold position that is prospective for the Niobrara formation. These additional details were derived from the question and answer period during the recent conference call.
- Ultra Petroleum is continuing to look for additional acreage to lease and is not content with a 100,000 net acre position.
- Niobrara well costs are estimated at between $4 million and $4.5 million each, and the depth of the play is approximately 1,000 to 1,500 feet shallower than acreage in Laramie County, Wyoming.
- No way to currently estimate the infrastructure investment needed to transport and process production out of the area.
- Well spacing may go from 320 acres down to 160 acres, and none of the acreage is on federal land. The company also has deeper rights on the leasehold.
- The Niobrara acreage has groundwater present and the company expects to have rights to use this groundwater during development.
- Using a EUR of 250,000 BOE per well.