2009-08-19-2007-11-01-2007-12-01

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
223MM
Description

Bought two production-sharing contracts with 6 producing oil fields in Bohai Bay covering 3,080 sq. km. Net production 4,300 BO/d.

SPC E&P (China) Pte. Ltd., a subsidiary of Singapore Petroleum Co. Ltd., Singapore City, (Frankfurt: S2T) has closed the acquisition of Sino-American Energy Co., a subsidiary of Ultra Petroleum Corp., Houston, (NYSE: UPL) for US$223 million. The sale represents all of Ultra's interests in China. It is now wholly focused on its onshore U.S. gas assets. Assets include two production-sharing contracts with six producing oil fields. With this acquisition, SPC's interests are 18% (8.91% net) in Block 04/36 and 23% (7.82% net) in Block 05/36. The fields are in the shallow waters of Bohai Bay, 190 kilometers west of Beijing, and cover approximately 3,080 square kilometers. There is potential for further exploration. SPC's share of the current Bohai production will be 4,300 barrels of oil per day. This acquisition will bring SPC's total current oil and gas production to more than 11,000 barrels of oil equivalent per day, including the Oyong and Kakap fields in Indonesia. Ultra is an independent E&P company focused on developing long-life gas reserves in the Green River Basin of Wyoming. Ultra controls more than 148,000 gross (78,688 net) acres in and around the Jonah gas field and the dale Anticline area. The assets sold in Bohai Bay comprise approximately 1% of Ultra's 2 trillion cubic feet equivalent of proved reserves. Ultra chairman, president and chief executive Michael D. Watford says, "We are pleased with the value received for the noncore asset and plan to turn our full attention to…the dale Field, the nation's second largest natural gas field. Even with the sale of these producing properties, we look forward to delivering over 20% organic production growth in 2008 and 2009." Singapore Petroleum chief executive Koh Ban Heng says, "The rationale for adding Bohai to our stable is two-pronged. One, it is in line with our long-term strategy to grow our business through upstream activities. The other is to tap the vast potential of China, both as a major oil and gas producing region, and as a key market." The effective date is June 30. Jefferies Randall & Dewey was financial advisor to Ultra.