Ultra Petroleum (UPL) is reducing development of the Marcellus Shale in 2012, and plans to spend only $400 million on development drilling in the Marcellus Shale during the year. The company’s latest presentation indicates that in 2011, 40%, or $540 million of a $1.35 billion capital budget was dedicated to the Marcellus Shale and other properties in the Appalachian Basin.
Ultra Petroleum’s total capital budget for 2012 is $925 million, a 38% cut from the $1.5 billion spent in 2011. The company expects to produce in a range from 250 to 260 Bcfe, representing 2% to 6% over 2011.
Interesting move by them. How do you think it will work out?
Posted by: david | 02/22/2012 at 09:53 AM