The properties are located in the Uinta Basin in northeast Utah. Company officials say the properties currently produce about 4,000 barrels of oil per day from thirty-eight wells. The deal gives Ultra a 100% working interest in the tract.
Company CEO Michael Watford says the properties should be able to turn a strong profit, even if oil prices fall below $75 a barrel. Watford addressed investors in a conference call earlier today.
“What I really like is the asset is immediately self-funding in year one and pays for itself in about five years.”
The deal is expected to close in December.