Ultra Petroleum Delivers 22% Organic Production Growth in the Third Quarter and

Production for the third quarter 2007 is comprised of 25.7 billion cubicfeet (Bcf) of domestic natural gas, 199.5 thousand barrels (MBbls) of domesticcondensate, and 301.1 MBbls of crude oil from China. Domestic natural gasprices realized for the third quarter 2007, including the effects of hedging,were $4.04 per thousand cubic feet (Mcf), a decrease from $5.68 per Mcf forthe same period in 2006. Domestic condensate prices were $67.02 per barrel(Bbl) compared to $70.61 per Bbl in the third quarter of 2006. China crude oilprices realized in the third quarter were $63.94 per Bbl, compared to $50.14per Bbl in the third quarter of 2006.

Earnings for the third quarter ended September 30, 2007 were $37.4million, or $0.24 per diluted share, compared to $52.5 million, or $0.33 perdiluted share for the same period in 2006. Earnings in the quarter arecomprised of $0.21 per diluted share from continuing operations and $0.03 perdiluted share from discontinued operations as a result of the company's saleof Sino-American Energy. Total operating cash flow (1), including discontinuedSino-American operations, was $90.4 million, or $0.57 per diluted share forthe third quarter 2007, versus $106.3 million, or $0.66 per diluted share forthe same period in 2006. Operating cash flow from continuing operations (1)was $81.7 million, or $0.52 per diluted share for the third quarter 2007,versus $92.6 million, or $0.58 per diluted share for the same period in 2006.

"Despite the confluence of events that drove Rockies natural gas pricesto unimaginable levels, we achieved margins and financial returns equal to orabove our peer group. We maintained our industry leading cost structure evenwhile shutting-in over 12% of our available production for the quarter,"stated Michael D. Watford, Chairman, President and Chief Executive Officer."Year-to-date for total operations, we achieved a net income margin of 33% anda cash flow margin of 71%. Our all-in costs of $2.65 per Mcfe ($2.46 per Mcfedomestic only) are the lowest in the industry and combined with our 30 yeardrilling inventory positions us to continue our sector leadership in growthand returns. As to growth, we are maintaining our 27% increased productiontarget of 116.5 Bcfe for the year (29% on a per share basis) even aftersuffering lost production due to third and fourth quarter shut-ins and thesale of our Sino-American operations," Watford added.

Natural gas and crude oil production for the nine month period endedSeptember 30, 2007 increased to 87.8 Bcfe compared to 63.2 Bcfe for the samenine months of 2006, a 39% increase. Both periods include production fromChina. Production for the first nine months of 2007 is comprised of 77.1 Bcfof domestic natural gas, 614.8 MBbls of domestic condensate, and 1.153 millionbarrels of crude oil from China operations. Including the effects of hedging,realized domestic natural gas prices during the nine month period were $4.76per Mcf, compared to $6.18 per Mcf during the same period in 2006. Domesticcondensate prices were $60.36 per Bbl compared to $67.81 per Bbl during thecomparable 2006 period. China crude oil prices for the nine months endedSeptember 30, 2007 were $56.21 per Bbl compared to $56.62 per Bbl in 2006.

Earnings for the nine month period ended September 30, 2007 were $153.1million, or $0.96 per diluted share. Earnings for the nine month periodinclude $0.84 per diluted share from continuing operations and $0.12 perdiluted share from discontinued operations as a result of the company's saleof Sino-American. Total operating cash flow (1), including discontinuedoperations, was $333.0 million, or $2.10 per diluted share for the nine monthperiod, versus $313.8 million, or $1.93 per diluted share for the same periodin 2006. Operating cash flow from continuing operations (1) for the nine monthperiod increased to $299.4 million, or $1.89 per diluted share, up from $273.5million, or $1.68 per diluted share, for the same period in 2006.

    Operational Highlights    

The average 24-hour delivery rate of the new Pinedale wells was 8.7million cubic feet of gas per day (Mmcfg) with a maximum of 22.1 Mmcfg perday. The maximum was achieved on the Ultra operated Mesa 2B-34D. The averageof the Ultra operated wells was 9.8 Mmcfg per day while the average of theUltra interest non-operated wells was 8.0 Mmcfg per day.

Below is a chart of year-to-date well statistics in Wyoming. It isimportant to note that the average initial production rate of an Ultraoperated Pinedale well is 123% of the outside-operated Pinedale well.

                             Average      Minimum     Maximum                             Initial      Initial     Initial                            Production   Production  Production      Number    Operator   Area         (Mmcf/day)   (Mmcf/day)  (Mmcf/day)     of Wells    Ultra      Pinedale        9.8          3.5         22.1           59    Outside-     Operated  Pinedale        8.0          2.5         15.9           88               Total Pinedale  8.7          2.5         22.1          147    

    Average    Pinedale/Jonah  8.5          2.5         22.1          157    

Since the beginning of the year, Ultra has drilled 65 total operatedwells from spud to total depth (TD). In Pinedale the company is averaging 38days per well spud to TD. This compares to 61 days per well average for 2006.Since the end of the quarter Ultra achieved a new record in drilling time inthe Pinedale Field. Ultra drilled the Warbonnet 3A1-9D well from spud to a TDof 13,380 feet in 18.6 days surpassing the previous record of 22.8 days.

The company's ongoing delineation program is in full swing with four ofeleven rigs now drilling wells as part of this project. At the present timethere are over 100 identified quarter sections (160 acres) for delineationdrilling in and around the Pinedale Field. Current plans call for continuingthe delineation drilling effort for at least the next five years in ongoingefforts to fully define the ultimate potential of this gigantic asset. Six ofthe planned 21 delineation wells for 2007 have sufficient production historyto be able to estimate reserves. All six have reserves above the year-end 2006reserves estimates by Netherland Sewell and Associates and on average thereserves are 167% better than these pre-drill estimates.

Included in the delineation wells, the Warbonnet 5C1-11D on the east sideof the Warbonnet area came on with a 24-hour flow rate of 14.3 Mmcfg per dayand the Warbonnet 4B-11D just to the north came on at a 24-hour flow rate of10.3 Mmcfg per day. Further to the north, the Boulder 10A-30 came on for a24-hour flow rate of 17.7 Mmcfg per day.

The evaluation of the non-pay section in Pinedale Field continues. Eightof the test wells are now completed and initial production logs have been run.These production logs indicate that the flow rates from the 21 frac stagespumped in this test have averaged over 125 Mcf gas per day per stage. If thisproduction continues like the typical Lance completion, these zones wouldappear to add materially to the overall reserves and production at only thecost of the extra frac jobs. It is still early in the process and additionaltesting will be needed to prove the potential value that can be added fromthis work.

Ultra continues to move ahead at the Mesa 10D-33 deep exploration test.The top of the Blair was encountered at 16,204 feet. At 17,504 feet Ultrachose to stop drilling due to the high pressures that were encountered. Atthat time, the well was drilled with 17.6 pound per gallon mud and carrying acontinuous gas flare. This mud weight equates to over 16,000 pounds bottomhole pressure at this depth. To evaluate the section drilled to date, anextensive suite of wireline logs were run and a large number of side-wallcores were recovered. All this data is now being evaluated to betterunderstand what has been found so far with some 500 feet of the Blair yet todrill. These logs indicate a significant thickness of potential pay sand withbetter porosity than was seen at the Stewart Point 15-29 deep test. Afterlogging the drilling liner was run to protect this part of the hole while itis still planned to drill ahead to the planned 19,500 foot total depth to testthe balance of the Blair and the Hilliard. After setting the liner, the toolsbecame stuck in cement inside the casing. Currently the company is washingover the drill string to recover the fish and hopes to be back drilling soonand finish the drilling operation during 2007.

    Rockies Express Pipeline Update    

    Share Repurchase Activity    

    Hedging    

                   Remaining Contract       Volume -    Type                Period              mmbtu/day   Average Price/mmbtu    Swap          Nov 2007 - Dec 2007        10,000            $4.59    Swap          Apr 2008 - Oct 2008        60,000            $6.82    Swap          Jan 2009 - Dec 2009        30,000            $7.35    

                         Remaining        Volumes         Average Price         Type         Contract Period    mmbtu/day        per Mcf/mmbtu     Forward Sale   Jan 2008 - Dec 2008   100,000     $7.41 Mcf/$6.83 mmbtu     Forward Sale   Jan 2009 - Dec 2009    10,000     $8.15 Mcf/$7.51 mmbtu    Other Highlights during the Quarter    

    Conference Call Webcast Scheduled for October 31, 2007    

    About Ultra    

    Ultra Petroleum Corp.    Consolidated Statement of Operations    (unaudited)    All amounts expressed in US$000's    

                        For the Nine Months Ended   For the Quarter Ended                         30-Sep-07    30-Sep-06    30-Sep-07    30-Sep-06    Volumes      Oil liquids (Bbls)       - Domestic          614,791      412,473      199,464      158,163      Natural Gas (Mcf)       - Domestic       77,144,168   53,457,186   25,727,129   20,494,570    MCFE from continuing     operations         80,832,914   55,932,024   26,923,913   21,443,548    

      Oil crude (Bbls)       - China -       discontinued       operations        1,153,293    1,206,930      301,139      355,674    MCFE - Total        87,752,672   63,173,604   28,730,747   23,577,592    

    Revenues       Oil sales           $37,111      $27,971      $13,368      $11,168       Natural Gas sales   367,552      330,202      103,847      116,365    Total Revenues         404,663      358,173      117,215      127,533    

    Expenses      Production Costs      16,675       10,218        6,424        5,411      Severance/Production       Taxes                45,166       41,223       12,960       14,549      Gathering Fees        20,141       13,621        6,667        5,509    Total Lease Operating     Costs                  81,982       65,062       26,051       25,469    

      DD&A                  94,084       50,189       31,864       19,556      General and       administrative       10,109       12,093        3,470        4,225    Total Expenses         186,175      127,344       61,385       49,250    Interest and other     income                    839        1,629          203          285    Interest and debt     expense                12,471        1,183        5,550          872    

    Net income before     income taxes          206,856      231,275       50,483       77,696    

    Income tax provision     - current               3,718        8,957        1,110        5,159    Income tax provision     - deferred             69,987       82,908       16,617       30,781    

    Net income from     continuing     operations           $133,151     $139,410      $32,756      $41,756    Discontinued    operations, net     of tax                $19,909      $31,215       $4,644      $10,719    Net Income             153,060      170,625       37,400       52,475    

    Operating Cash Flow     from Continuing     Operations (1)       $299,360     $273,529      $81,727      $92,590    Operating Cash Flow     from Discontinued     Operations (1)        $33,592      $40,255       $8,709      $13,704    Operating Cash     Flows (1)            $332,952     $313,784      $90,436     $106,294    

    (1) (see non-GAAP reconciliation)    <<    Weighted Average     Shares - Basic        151,825      154,591      151,530      153,351    Weighted Average     Shares - Diluted      158,768      162,447      158,224      160,920    >>    <<      Earnings per Share       from continuing       operations - Basic    $0.88        $0.90        $0.22        $0.27      Earnings per Share       from continuing       operations - Diluted  $0.84        $0.86        $0.21        $0.26    >>    <<      Earnings per Share       from discontinued       operations - Basic    $0.13        $0.20        $0.03        $0.07      Earnings per Share       from discontinued       operations - Diluted  $0.12        $0.19        $0.03        $0.07    >>    <<    Realized Prices      Oil liquids (Bbls)       - Domestic           $60.36       $67.81       $67.02       $70.61      Oil crude (Bbls) -       China (discontinued       operations)          $56.21       $56.62       $63.94       $50.14      Natural Gas (Mcf)      $4.76        $6.18        $4.04        $5.68    >>    <<    Costs Per MCFE    United States -     continuing operations      Production Costs       $0.21        $0.18        $0.24        $0.25      Severance/Production       Taxes                 $0.56        $0.74        $0.48        $0.68      Gathering Fees         $0.25        $0.24        $0.25        $0.26      DD&A                   $1.16        $0.90        $1.18        $0.91      General and       administrative        $0.13        $0.22        $0.13        $0.20      Interest and debt       expense               $0.15        $0.02        $0.21        $0.04                             $2.46        $2.30        $2.49        $2.34    China - discontinued     operations      Production Costs       $1.53        $0.94        $2.75        $0.99      Severance/Production       Taxes                 $1.17        $0.97        $1.65        $0.77      DD&A                   $2.16        $1.25        $2.18        $1.40      General and       administrative        $0.07        $0.01        $0.12        $0.00                             $4.93        $3.17        $6.70        $3.16    >>    Note: Amounts on a per MCFE basis may not total due to rounding.    <<    Margins      Pre-tax income -       continuing operations   51%          65%          43%          61%      Net Income - continuing       operations              33%          39%          28%          33%    >>    <<      Pre-tax income           51%          65%          42%          61%      Net Income               33%          40%          27%          36%    >>

    Operating margins      United States -       continuing operations   80%          82%          78%          80%    

    Ultra Petroleum Corp.    Reconciliation of Cash Flow from Operations Before Changes in Non-Cash    Working Capital     (unaudited)    All amounts expressed in US$000's    

     (1) Operating cash flow is defined as net cash provided by operating         activities, including continuing and discontinued operations, before         changes in non-cash working capital. Management believes that the         non-GAAP measure of operating cash flow is useful as an indicator of         an oil and gas exploration and production company's ability to         internally fund exploration and development activities and to service         or incur additional debt. The company also has included this         information because changes in operating assets and liabilities         relate to the timing of cash receipts and disbursements which the         company may not control and may not relate to the period in which the         operating activities occurred. Operating cash flow should not be         considered in isolation or as a substitute for net cash provided by         operating activities prepared in accordance with GAAP.    

                        For the Nine Months Ended   For the Quarter Ended                         30-Sep-07    30-Sep-06    30-Sep-07    30-Sep-06    Net cash provided by     operating activities $358,202     $328,889     $118,844      $91,177    

    Excess tax benefit     from stock based     compensation          $13,561       $9,516       $2,013       $1,458      Other                   $(92)          $-         $(51)          $-      Accounts payable and       accrued       liabilities        $(36,403)    $(31,583)      $8,134      $(6,225)      Prepaid expenses       and other       current assets       $1,142         $(22)        $135         $(7)      Accounts receivable     $119      $10,170     $(14,535)     $18,672      Restricted cash       $1,482           $2         $275           $1      Other long-term       obligations         $(7,117)     $(5,255)     $(8,864)     $(4,163)      Taxation payable      $2,150       $3,565           $-           $-      Net changes in       non-cash working       capital - discontinued       operations             $(92)     $(1,498)    $(15,515)       $5,381    Cash flow from     operations before     changes in non-cash     working capital     $ 332,952    $ 313,784      $90,436    $ 106,294    

    These statements are unaudited and subject to adjustment.    

This news release includes "forward-looking statements" within themeaning of Section 27A of the Securities Act of 1933, as amended, and Section21E of the Securities Exchange Act of 1934, as amended. The opinions,forecasts, projections or other statements, other than statements ofhistorical fact, are forward-looking statements. Although the Company believesthat the expectations reflected in such forward-looking statements arereasonable, we can give no assurance that such expectations will prove to havebeen correct. Certain risks and uncertainties inherent in the Company'sbusiness are set forth in our filings with the SEC, particularly in thesection entitled "Risk Factors" included in our Annual Report on Form 10-K forour most recent fiscal year and from time to time in other filings made by uswith the SEC. These risks and uncertainties include increased competition, thetiming and extent of changes in prices for crude oil and natural gas,particularly in Wyoming, risks inherent in operations in China, the timing andextent of the Company's success in discovering, developing, producing andestimating reserves, the effects of weather and government regulation,availability of oil field personnel, services, drilling rigs and otherequipment, and other factors listed in the reports filed by the Company withthe SEC. Full details regarding the selected financial information providedabove will be available in the Company's Report on Form 10-Q for the quarterended September 30, 2007.

This release can be found at http://www.ultrapetroleum.com

For further information

Kelly L. Whitley, Manager Investor Relations of Ultra Petroleum Corp., +1-281-876-0120, ext. 302, WebSite: