Ultra Petroleum, in bankruptcy, settles pipeline lawsuit

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Remember when Ultra Petroleum was making headlines locally? It bought most of the  undeveloped Banning Lewis Ranch on the city's east side with plans to drill for oil and gas?

When tests weren't promising, Ultra Petroleum's subsidiary, Ultra Resources, sold the property to David Jenkins in late 2014 but retained the mineral rights. Jenkins is the biggest developer in the region.

The latest on Ultra is that the Houston company is in bankruptcy and has just reached a settlement with a pipeline company. Here's the news release:
HOUSTON — Ultra Petroleum Corp. ("Ultra") (OTC: UPLMQ) announces that it has reached an agreement to settle Rockies Express Pipeline LLC's ("REX") $303.0 million breach of contract claim. The settlement will be submitted to the U.S. Bankruptcy Court for approval and will be implemented in connection with Ultra's chapter 11 plan of reorganization.

The settlement includes a cash payment of $150.0 million to REX six months after Ultra emerges from chapter 11, but no later than October 30, 2017. Additionally, Ultra has agreed to enter into a new seven-year firm transportation agreement with REX commencing December 1, 2019 for service west-to-east of 200,000 dekatherms per day at a rate of approximately $0.37, or approximately $26.8 million annually.

Mr. Michael Watford, Chairman, President and Chief Executive Officer of the Company, said, "Our settlement of REX's claim is another major achievement in our in-court restructuring. This settlement removes the uncertainty around this very significant claim and represents a critical step towards the implementation of the plan of reorganization we filed last month. We appreciate the cooperation of REX and are pleased to be working with them again as business partners."

About Ultra Petroleum

Ultra Petroleum Corp. is an independent energy company engaged in domestic natural gas and oil exploration, development and production. The company trades over-the-counter under the ticker symbol "UPLMQ". Additional information on the company is available at www.ultrapetroleum.com.

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