Ultra Petroleum expects to finance the acquisition through debt at the subsidiary and parent level. Ultra anticipates the transaction will close December 2013, subject to closing adjustments and customary terms and conditions, with an effective date of October 1, 2013.
Ultra Petroleum chairman, president and CEO Michael Watford said, "This oil acquisition fits our strategy of profitable growth with exceptional returns at oil prices well below $75 per barrel. As operator with 100 percent working interest, we will apply the same drilling techniques used in Pinedale due to similar geologic characteristics."
"The asset is cash flow positive starting in year one and completely pays for itself in five years followed by decades of free cash flow," stated Michael D. Watford, Chairman, President and Chief Executive Officer," Watford added.
