Ultra Petroleum Increases Proved Reserves 13 Percent to 4.98 Tcfe and Reports All-In F&D Costs of $1.82 per Mcfe

Ultra Petroleum Corp. UPL today reported 4.98 trillion cubic feet equivalent (Tcfe) of total proved natural gas and crude oil reserves for the year-ended December 31, 2011. Ultra's reserves increased 13 percent above the company's proved reserves as of December 31, 2010. Ultra replaced 339 percent of 2011 production, adding over 830 billion cubic feet equivalent (Bcfe) of net reserves organically. Proved developed reserves increased 17 percent above the prior year to 2.0 Tcfe. The proved undeveloped (PUD) portion of reserves consisted of 2.9 Tcfe, an 11 percent increase above year-ago levels. Similar to prior years, the company's proved undeveloped to total proved reserves ratio was a low 0.59 to 1. In Pennsylvania, proved reserves increased 350 percent year-over-year. For the first time, Ultra included more than merely proved developed reserves from the Marcellus Shale, reporting 256 Bcfe of Marcellus reserves in the proved undeveloped category. The ratio of proved undeveloped to developed Marcellus locations is a conservative 0.39 to 1. At this time, Ultra has not included any reserves from the Geneseo formation, a zone above the Marcellus believed to be prospective across a majority of the company's acreage position. Additional Marcellus locations as well as Geneseo potential are expected to provide meaningful reserve growth in the future. The company's proved reserves were prepared by an independent reservoir engineering firm and in accordance with the current Securities and Exchange Commission (SEC) pricing guidelines. The SEC rules require reserve evaluations to be calculated using an average first of month price for the preceding 12 calendar months. Accordingly, Ultra Petroleum's reserves were determined with an average SEC price of $4.04 per thousand cubic feet (Mcf) for natural gas and an $88.19 per barrel (Bbl) crude oil price. The pre-tax estimated future net cash flows discounted at ten percent (PV-10) of the year-end 2011 proved reserves is $5.3 billion. Using a mid-cycle commodity price outlook, Ultra calculated a proved reserve PV-10 value of $7.4 billion at a $5.00 per Mcf and $9.6 billion at a $6.00 per Mcf natural gas price.