ultra petroleum corp. (upl) - oil spill pads

by:Demi     2019-09-15
ultra petroleum corp. (upl)  -  oil spill pads
Content table☑Annual reports submitted under sections 13 or 15 (d)
1934 Securities Trading Act☐Transition reports submitted under sections 13 or 15 (d)
Title of each category name of the exchange registered in section 1934 of the Securities and Exchange Act☐☑☐☑☑☐☑☐☐☐☐☑☑☐Business Risk factor resolution employee review property legal procedures safety disclosure Item 5.
Market for registrant common stock, related shareholder matters and issuer to purchase equity securities
Selected Financial Data Management Discussion and Analysis of financial status and operational results quantitative and qualitative disclosure of financial statements and supplementary data on market risks and control and procedures with accountants in accounting and financial disclosure executive and corporate governance executive compensation guarantee ownership of certain beneficial owners, management and related shareholders affiliate transactions and directors independent primary accounting fees and service attachments, financial statement schedulesBusiness.
Actwww, Yukon business. ultrapetroleum. comwww. sec.
GovUltra seeks to maintain a portfolio of properties offering long-term services
In the long run, profitable growth is achieved by supporting sustainable, lower-tier development
High risk of repeatable
Drill back project.
The Company evaluates the opportunity to acquire, explore and develop additional oil and gas properties at risk
More than or equal to the Adjusted return on its current portfolio of investment options.
The company's business strategy consists of proactively reviewing its portfolio of investment opportunities on a regular basis, focusing on investments that generate positive returns to optimize the returns of shareholders.
The company seeks to develop resources from existing assets while spending in cash flow to maximize profitability.
Ultra strives to maintain one of the lowest-cost structures in the industry in terms of increasing and producing oil and gas reserves.
The company continues to work on improving its drilling and production results with advanced technology and detailed technical analysis of its performance while keeping it low
Cost structure, adhere to best practices in the industry and regulations, maintain strict safety and environmental standards, and recruit and retain top talent within the company.
Financial liquidity table.
Increased financial flexibility and enhanced balance sheets are also key components of the Ultra business philosophy.
As of December 31, 2018, the company had $17 in cash on hand.
Outstanding debts of $0 and $2. 2billion.
In 2018, the company had borrowed $325.
Its revolving credit line is 0 million yuan (
"Revolving credit mechanism ")
According to the loan base, $104 of this amount is determined.
Million is outstanding.
In addition, the company is trying to increase the visibility of cash flow by forecasting some predicted quantities every year to manage commodity price risks and provide predictability of cash flow.
The company's marketing and pricing table for the production of natural gas in Wyoming has entered into various collection and processing agreements with midstream service providers to compress and process natural gas owned or controlled by the company, from production wells in the Pinedale Anticline and Jonah fields.
Under these agreements, midstream service providers continue to maintain and upgrade facilities in southwest Wyoming to ensure reliability and certainty of operations.
The Company believes that the capacity of the midstream infrastructure associated with its production will continue to be sufficient to sell all of its available natural gas production.
The market price of natural gas is affected by many regional and national factors that are beyond the control of the company.
These factors include weather in the western United States, natural gas supply, imports from Canada, natural gas demand, inventory levels in the field of natural gas storage, and gas pipeline capacity to export natural gas from the basin where the company produces it. See Item 1A.
"Risk Factors" to learn more about the financial situation and risk of business results related to the underlying differences.
The following table provides a historical perspective of the difference in average natural gas base in Wyoming (NwRox).
According to Platt's M2M report, the base difference is expressed as a percentage of the price of the Henry Hub (Mark to Market)
Report and Bloomberg News on December31, 208and207.
The company sells Wyoming condensate to various buyers, mainly refiners in Salt Lake City, Utah.
The condensate pricing achieved by the company is usually based on the daily settlement price of crude oil futures on the New York Mercantile Exchange, adjusted according to the negotiated location/transportation differences.
All of the company's condensate sales are based in the United States. S.
USD/barrel, paid monthly.
The company usually only retains the operational inventory of condensate production and sells its products on a "production" basis.
Part of the company's condensate sales are entered by its operating partners in the Pinedale Field.
More than 94% of the oil is transported through the pipeline, thus greatly reducing the risk of leakage and loss.
During 2018, the company achieved a positive difference of $1.
84, excluding the abnormal situation of pipeline interruption, the calculation of the intermediate price in West Texas.
The improvement of the differential is the result of a strong refining demand for the quality of condensate produced in the Pinedale region.
This trend to strengthen the oil difference is expected to continue in 2019, which is evidence of the contract as of 2019, with a positive difference of $3. 23 per Bbl.
Before the company sold its Uinta Basin properties in September 2018, the properties produced crude oil commonly known as Black Wax crude oil, which is considered to be medium grade crude oil.
This oil is sold in the short term. term or long-
Signed a regular contract with Salt Lake City refinery, Utah.
The price of the company's crude oil production is usually based on the New York Mercantile Exchange's pricing of intermediate crude oil in West Texas, or according to the price released by Black Wax crude oil in the Uinta Basin, minus the negotiated location/shipping discount or price difference.
Content sheet companies maintain credit policies designed to mitigate the risk of unrecoverable accounts receivable related to the sale of natural gas and condensate and commodity derivatives.
InNote 13 describes a more complete description of the company's credit policy.
The company takes measures to ensure the collectability with buyers through regular credit monitoring and review.
If necessary, the company requires the buyer to advance the advance payment, letter of credit or parent guarantee during the exposure period.
As of December 31, 2018, there was no fixed, unrecoverable account for the company's gas and oil sales.
Wyoming maintains governance of some more traditional states
Regulated matters such as individual drilling permits, spacing and pooling, wellbore construction, and their own safety and environmental matters regulations.
Oil and Gas Conservation Commission of Wyoming (“WOGCC”)
The drilling density in the Pinedale Field has been authorized to reach up to five mu per well and five mu per well in the Jonah field.
The company's exploration, drilling and production activities from well and oil and gas facilities, including the operation and construction of pipelines, factories and other facilities for transporting, processing, processing or storing oil, natural gas and other products are subject to many strict federal regulations, state and local laws and regulations related to environmental quality, including laws and regulations related to oil spills and pollution control.
These laws and regulations govern environmental clean-up standards that require permits for the disposal of air, water, underground injections, solids and hazardous wastes, and develop environmental compliance standards.
In addition, national and local laws and regulations stipulate specific standards for drilling, bonding requirements for drilling or operating wells, spacing and location of wells, methods of drilling and casing Wells, surface use and performance recovery of drilling, blockage of Wells, abandonment of Wells, prevention and cleaning of pollutants, etc. The U. S.
Environmental Protection Bureau (“EPA”)
Environmental Compliance in the energy extraction sector has been identified as one of its law enforcement initiatives for the fiscal year 2017
2019 in general, the oil and gas exploration and production industry has been and will continue to be the target of increasingly stringent scrutiny and regulation by environmental authorities.
Failure to comply with the contents of these laws and regulations may result in an assessment of administrative, civil and criminal fines and penalties, as well as the implementation of injunctive relief.
Unexpected releases or spills may occur during our operations and we cannot be sure that we will not incur significant costs and liability for such releases or spills, including any third-
Claim for damage to property, natural resources or people.
However, it is expected that compliance with these laws and regulations will not have a significant impact on the company's operations, capital expenditures, income or competitive position if no special events occur.
The company has previously owned or leased many properties for oil and gas exploration and production and currently owns or leases these properties.
Although the company has adopted standard methods of operation and disposal, hydrocarbons or other solid wastes may have been disposed of or released on or under these properties or at the place or place where these wastes have been disposed.
In addition, many of these properties are operated by third parties beyond the control of the company and have never controlled the treatment of hydrocarbons or other wastes by these entities, there is also no control over the way these substances are disposed of or released.
Over time, state and federal laws that apply to oil and gas waste and property have gradually become more stringent.
Under current and evolving laws, the company may be required to remedy property affected by the company's operations or third parties, including groundwater
Party operators, or affected by previously disposed waste, include remedial blockage operations to prevent future or reduce existing pollution.
Many of the company's exploration and production operations rely on the use of hydraulic fracturing to increase production in oil and gas wells.
The National Oil and Gas Commission usually manages fracking activities.
EPA claims that the federal regulator
Fracturing activities under the federal Safe Drinking Water Act (“SDWA”)
Involving the use of diesel fuel, and in February 2014 issued a licensing guide on the use of diesel in fracturing operations.
Congress regularly considers changes to SDWA legislation to remove licensing and regulatory exemptions for fracking injection (
Except that diesel is an integral part of the fracturing fluid)
It also requires disclosure and reporting of chemicals used in hydraulic fracturing.
If this type of federal legislation is passed, it may result in additional regulations and licensing requirements, which may result in a delay in operation, thus making it more difficult to carry out hydraulic fracturing, and increase our compliance costs and operating costs.
In addition, some states, including Wyoming, have passed and others are considering passing regulations requiring disclosure of chemicals in fluids used in fracking or production operations.
In addition, some state, local and local regulatory authorities have passed or considered suspending hydraulic fracturing or other restrictions in some cases through regulations restricting drilling and completion operations, including requirements on the permit, casing and cement injection of the well;
Detection of nearby wells;
Restrictions on access to and use of water;
And restrictions on the types of chemical additives that may be used in hydraulic fracturing operations.
Although none of the company's property is in a closed jurisdiction, the jurisdiction in which the company's property is located May in the future adopt such restrictions or other restrictions on fracking.
On December 2017, BLM revoked the regulations on hydraulic fracturing activities previously enacted on federal land;
In ongoing litigation, a number of environmental groups and countries challenged the issue.
In addition, EPA has announced an initiative under the Toxic Substances Management Act to develop regulations governing the disclosure and evaluation of fracking chemicals and is working on regulations for wastewater generated by fracking.
Under the Federal Act on Comprehensive Environmental Response, Compensation and Liability (“CERCLA”)
Also known as the "Superfund law", in general, liability is joint and several for investigation and remediation costs and for damage to natural resources, regardless of the fault or legality of the original act, regarding the release of certain categories of persons into the environment designated as hazardous substances by CERCLA (
"Harmful substances ").
People in these categories, or-
Potential responsible party (“PRPs”)
, Including current and certain past owners and operators of facilities that have released or threatened to release hazardous substances, persons who dispose of or arrange to dispose of hazardous substances found at the facility, in some cases, the parties transported such dangerous substances to the relevant facilities.
CERCLA also authorizes EPA that, in some cases, third parties should act on the threat of release and release to protect public health or the environment and seek to recover the costs of such action from PRP.
Although CERCLA generally exempts "oil" from the definition of hazardous substances, adulterated petroleum products containing other hazardous substances were used to be considered hazardous substances during their operation, the company has produced and will produce waste that meets the definition of CERCLA hazardous substances.
The company may also be the owner or operator of the facility that releases hazardous substances.
The company may, under CERCLA, be responsible for cleaning up all or part of the costs of the facilities that release these substances, as well as the loss of natural resources, as the owner or operator or arranger of the past or present.
While we use the practices of operation and disposal of industry standards at that time, hydrocarbons or other wastes may have been disposed of or released on or under property that we own or lease, the property is disposed of at or under other locations where the waste is disposed.
In addition, part of these properties may be operated by third parties whose waste disposal and disposal or release is not under our control.
Many states have similar laws that provide for persons of similar categories to be responsible for the release, including for the release of materials that may not be included in the definition of hazardous substances at CERCLA.
To its knowledge, the company was not named PRP under CERCLA (
Or any similar state law)
Any prior owner or operator of its property is also not named as PRPs in connection with the ownership or operation of such property.
The federal National Environmental Policy Act provides that for federal actions that seriously affect the quality of the human environment, federal agencies that take such actions must prepare environmental assessments (“EA”)
Environmental Impact Report (“EIS”).
In the EIA, the agency is required to assess the alternatives to the proposed actions and the environmental impact of the proposed actions and such alternatives.
The company's actions, such as drilling on federal land, may trigger the requirements of the National Environmental Policy Act if drilling requires federal approval, including the preparation of EA or EIS requirements.
The requirements of the National Environmental Policy Act may result in increased costs, significant delays, and impose restrictions or obligations on the activities of the company, including but not limited to restrictions or prohibition of drilling.
Oil Pollution Act of 1990 (“OPA”)
Amending and strengthening the oil spill provisions of the Clean Water Act (“CWA”)
, Impose certain liabilities and obligations on certain "responsible parties", which involve preventing oil leakage and damage that occurs or threatens US waters or coastlines in US waters or adjacent coastlines.
The liability "responsible party" includes the owner or operator of a facility, vessel or pipeline that acts as a source of oil emissions or constitutes a significant threat to emissions, or, in the case of an offshore facility, lessee or holder in the area where the unloading facility is located.
OPA assigns responsibility to each responsible party, which is usually joint and several, regardless of negligence, including the cost of cleaning oil and various public and private damages.
Although there are defenses and restrictions on the liability imposed by OPA, they are limited.
In the event of an oil spill or a serious threat of unloading, the company may bear the costs and damages.
The contents of the Air Pollution Act.
Clean Air Act (“CAA”)
Manage emissions of six standard substances from fixed and mobile sources and formulate national environmental air quality standards (“NAAQS”)
Pollutants of concern.
CAAis afederal law, but state, tribal and local governments do a lot of work for the development Environmental Protection Agency
Approved companies plan to meet these standards and meet the requirements of the association.
Federal and state laws typically require new and modified sources of air pollutants to be licensed before construction is started, which may require strict emission control, among other things.
An administrative organ may file a lawsuit against non-compliance with air pollution regulations or permits and is generally enforced through administrative, civil or criminal law enforcement actions, which may result in fines, injunctive relief and imprisonment.
Clean Water Act (“CWA”)
Similar state laws restrict the discharge of pollutants into American waters, including produced waters and other oil and gas wastes, and in a broad sense the term includes, among other things, certain wetlands
Under the Clean Water Act, permits for the discharge of pollutants into American waters must be obtained.
CWA provides for administrative, civil and criminal penalties for daily and accidental acts of unauthorized discharge of pollutants, oil and hazardous substances.
It establishes significant potential liability for removal or remediation costs associated with the discharge of oil or hazardous substances.
State laws governing discharge to water also provide for different civil, criminal and administrative penalties and are held liable when discharging oil or its derivatives or other hazardous substances to state waters.
In addition, EPA has enacted regulations that may require the discharge of rainwater runoff permits, including emissions related to construction activities.
List of Endangered Species Act.
Endangered Species Act“ESA”)
It was built to protect endangered species.
Under the act, if a species is listed as a threatened or endangered species, restrictions may be imposed on activities affecting the habitat of the species.
According to the law on the Law of migratory birds, similar protection is provided for migratory birds, and under the law on Bald and Golden Eagle Protection, special protection is provided for bald and golden eagle.
The company operates on federal and other oil and gas leases with listed species such as raptors and species such as sage grouse, this may be included in the ESA list of threats or endangered.
In the case of sage grouse, October 2017, United States of AmericaS.
The Fish and Wildlife Authority announced the start of the scoping process to solicit public opinion on the great saints
The management of Grouse land with respect to the land plan use amendment relating to sage Grouse can be guaranteed.
February 11, 2016, United StatesS.
The Fish and Wildlife Administration has released a final policy that changes how it identifies important habitats for endangered and threatened species.
Key habitat designation may result in further material restrictions on federal and private land use and may delay or prohibit land entry or development.
In addition, a settlement was approved by the United StatesS.
On September 2011, the District Court of Columbia, United StatesS.
Fish and Wildlife Services need to make listing decisions and key habitat designation if more than 250 species need them. The U. S.
Fish and Wildlife Authority issued 7-
National annual listing work plan for September 2016.
However, in July 25, 2018, the United StatesS.
The Fish and Wildlife Service has proposed three revisions to regulations on key habitat designation, inter-agency cooperation and protection of threatened species, and it considers it necessary to address the concerns of industrial and landowners. The U. S.
The Ministry of the Interior also issued an opinion on December 22, 2017, which will narrow certain protections provided to migratory birds under MBTA.
In response to this opinion, two separate lawsuits were filed in the United States on May 24, 2018. S.
The Southern District Court in New York questioned the Home Office's interpretation of MBTA.
In September 5, 2018, eight states also filed lawsuits in the United States. S.
The District Court of Southern New York held a hearing on the issue.
In areas where species protection is carried out, identifying or designating previously unprotected species as threatened or endangered species may result in us increasing costs due to species protection measures, or may limit our development to adversely affect our ability to develop and produce reserves.
If we designate a portion of the lease as a critical or suitable habitat, this may adversely affect the value of our lease.
Stricter laws and regulations related to climate change and greenhouse gases (“GHGs”)
Including methane and carbon dioxide, it may be adopted and may result in material costs incurred by the company in complying with these standards.
In the absence of comprehensive federal legislation on greenhouse gas emission control, EPA sought to demand that greenhouse gas emissions be allowed.
Although the Supreme Court rejected the licensing requirements applicable to greenhouse gas emissions, it upheld EPA's authority to control greenhouse gas emissions when it needed permission due to other pollutant emissions.
EPA has developed greenhouse gas reporting requirements for sources in the oil and gas industry, requiring these sources to monitor, keep records of greenhouse gas emissions and report their greenhouse gas emissions annually.
So far, the company has submitted all the required annual reports.
Although the rule does not limit the amount of greenhouse gases that can be emitted, it may require us to incur significant costs to monitor, record and report greenhouse gas emissions related to our operations. .
Law on Occupational Safety and Health (“OSHA”)
Similar state laws provide for the safety and health of workers.
The OSHA hazardous communication standard requires the maintenance of information on hazardous materials used or produced in operation and the provision of such information to employees.
Other OSHA standards regulate the specific worker safety aspects of our operations.
For example, under the new OSHA standard that limits the exposure of inhaled silica, the oil and gas industry must implement engineering control and work practices, limiting exposure to new limits by June 23, 2021.
Failure to comply with the requirements of OSHA may result in penalties.
In December 2015, the United StatesS.
The Ministry of Justice and the Department of Labor have announced a plan to prosecute workers for health and safety violations more frequently and effectively, including increased penalties.
Table contentsempyeesitem1a. Risk Factors.
$41 million due in January 12, 2022 under the revolving credit mechanism;
Under the regular loan mechanism, $0. 975 billion due in April 12, 2024;
The second lien note due on July 12, 2024 was $0. 572 billion;
$0. 15 billion due in April 12, 2022, involving 2022 bills;
And $0. 225 billion description of 2025 due on April 12, 2025.
We are required to use a large part of our operating cash flow to repay existing debt, thereby reducing cash available for operations and other business activities, and limit our flexibility in planning or responding to changes in our business and operations industries;
Make us more vulnerable to the adverse effects of the economic downturn and business development;
Limits our ability to enter capital markets to raise capital on preferential terms or to obtain additional financing for working capital, capital expenditures or acquisitions or to refinance existing debt;
Limits our ability to acquire additional financing, investment, rental equipment, sell assets and engage in a business portfolio;
Contentsplacingus is at a competitive disadvantage compared to competitors with lower debt levels, relative to their overall size or the less restrictive terms governing their liabilities;
Limit our ability to deduct net interest payments;
It makes it harder for us to meet our obligations under our existing debt and increases the risk that we may default.
Failure to maintain the continued listing standard on Nasdaq may result in delisting of our common stock, which may have a negative impact on the market price and liquidity of our common stock and our ability to enter the capital market.
Key suppliers may terminate their relationship or require financial assurance or improve performance;
Potentially adversely affecting the renewal of existing contracts and the ability to compete for new business;
The ability to attract, motivate and/or retain key executives and employees may be adversely affected;
Employees may be distracted by the performance of their duties or are more likely to be attracted to other employment opportunities;
Competitors may take away our business, and our ability to attract and retain customers may be negatively affected.
Our catalogue of assets or issuance may impair our ability to carry forward the net operating loss of income tax over the next few years.
In addition, under the tax reduction and Employment Act (the “Tax Act”)
Signed into law on December 22, 2017 ,(i)
Amount of mail-
2017 allowing us to deduct net operating losses in any tax year is limited to 80% of taxable income in that year, in the event of determining taxable income without considering the net operating loss deduction itself, and (ii)post-
2017 net operating losses cannot be carried forward to the previous tax year.
ContentsCrude oil table accounts for about 5% of our total output, accounting for 17% of our total annual revenue as of December 31, 2018, accounting for 5% of our proven reserves as of December 31, 2018.
Crude oil prices fell sharply in the second half of December 31, 2018, with prices of 2015, 2016 and 2017 continuing to fall, and prices remained volatile for the year ended.
In the future, the price of crude oil may remain at the current level or fall to a lower level.
If the price of crude oil is maintained at the current level or falls to a lower level, it will adversely affect our crude oil business and our financial situation.
Most of our production in the Uinta Basin is crude oil.
Global and regional economic conditions affecting global oil and gas supply and demand;
Action of the Organization of Petroleum Exporting Countries;
The price and quantity of imported foreign oil and gas;
Political conditions or effects of other oil and gas
Producing countries;
Global level of oil and gas exploration and production;
Global oil and gas inventories;
Localization of supply and demand fundamentals and transport availability;
Weather conditions and natural disasters;
The government's policy to prevent the use of fuels that emit "greenhouse gases (“GHGs”)
Encourage the use of alternative energy sources;
(1) domestic, local and foreign government regulations and taxes;
Speculation about future oil and gas prices and speculative trading of oil and gas futures contracts;
The price and supply of oil and gas supplied by competitors;
Technological progress affecting energy consumption;
Availability of drilling rigs and completion equipment;
And the overall economic environment.
If the assumptions on which these estimates are based are inaccurate, the ContentsOur reserve estimates table may prove incorrect.
Any significant inaccuracies in these reserve estimates or potential assumptions will have a significant impact on the quantity and present value of our reserves.
We acquire the capital required for drilling, completion and acquisition of property;
Our ability to obtain and analyze earthquake, geology and other information related to property;
Our ability to attract and retain personnel required to properly assess earthquakes and other property-related information;
Our ability to purchase materials, equipment and services required to explore, develop and operate our property;
Our ability to comply with administrative, regulatory and other government requirements;
And our ability to access the pipeline, as well as the location of the facilities used to produce and transport oil and gas production.
A table of content factors beyond our control affects our ability to effectively market production and may ultimately affect our financial results.
Degree of domestic production and import of oil and natural gas;
Supply of pipeline, railway and refining capacity, including facilities owned and operated by third parties;
To provide a market for our oil and gas production;
Provide satisfactory transportation arrangements for our oil and gas production;
Proximity of natural gas production to natural gas pipelines
The impact of bad weather;
Demand for oil and gas from utilities and other end users;
Availability of alternative fuel sources;
State and federal regulations for oil and gas marketing and transportation;
And federal regulations for the sale or transportation of natural gas in interstate trade.
While it is not currently possible to predict when the CFTC will issue final rules applicable to position limits or margin requirements, in accordance with the company's ability to meet the various exemption requirements of the CFTC for commercial purposes ,-
Users who use swaps to hedge or mitigate their business risks, these rules and regulations may require us to comply with position restrictions, margin requirements, and certain clearing and trading
Implementation requirements related to our financial derivatives activities. The Dodd-
The frank act may require our current counterparty to increase capital due to the signing of unliquidated financial derivatives with us, which may increase the cost of US signing such derivatives. The Dodd-
The Frank bill may also require our current financial derivatives counterparty to peel off some of their derivatives activities to different entities that may not have credit as their current counterparty, it may cause some entities to stop their business as a hedge provider at present.
These changes may reduce the liquidity of the financial derivatives market, thus reducing the ability of commercial terminals.
Users can use financial derivatives to hedge, or to mitigate their risk of commodity price fluctuations. The Dodd-
The Frank Act and any new regulation may significantly increase the cost of derivative contracts (
Including collateral that may adversely affect our available capital for other business operations purposes by asking for posting)
, In relation to the terms of our existing bilateral negotiating financial derivatives contracts, materially change the terms of future swaps and reduce the availability of derivatives to prevent the commercial risks we encounter.
We are required to obtain permission before developing the property;
Restricting substances that can be released into the environment related to drilling, completion and production activities;
Restrict or prohibit drilling activities in protected areas such as wetlands or wilderness;
Remedial measures are also required, including blockage of previously abandoned wells, to reduce pollution from previous operations.
Legislation or regulations limiting greenhouse gas emissions may lead to increased operating costs and reduce demand for the oil and gas we produce.
After years of litigation, BLM withdrew the rule in December 2017;
The proceedings for the withdrawal of the rule are under trial.
BLM also issued rules in November 2016 to try to limit methane emissions from new and existing oil and gas operations on federal land, although the current government proposes to postpone the implementation date applicable to the requirements of this rule.
BLM also issued rules in November 2016 to limit methane emissions from new and existing oil and gas operations on federal land, but subsequently relaxed and removed certain requirements for the rule in September 2018;
Proceedings challenging the September 2018 revision of the rules are under trial.
Table ContentsCyber-
Attacks on systems and infrastructure used in the oil and gas industry may adversely affect our operations.
We would like to fund our capital budget, operating costs and interest service obligations for 2019 using our operating cash, cash using revolving credit convenience and cash on hand.
Under certain restrictive covenants, we can modify the loan commitments and total amounts borrowed under the revolving credit mechanism and from other sources from time to time.
A change in our ability to satisfy a restrictive contract may limit our ability to borrow.
If this happens, we may have to sell assets or seek alternative financing.
We cannot guarantee success in selling assets or arranging alternative financing.
See Part 2, Item 7 "management discussion and analysis of financial position and results of operations --
Liquidity and capital resources ", learn about our liquidity, the cash available at hand and the description of the current debt agreement.
The table of the ContentsOur business depends on the collection and transportation facilities owned by others.
Any restrictions on the availability of these facilities will interfere with our ability to sell the oil and gas we produce.
Directory forward-
Forward-looking statements include statements regarding the number of our oil and gas reserves and the discounted present value of those reserves;
The quantity and nature of capital expenditure in China;
Drilling in straight wells and horizontal wells;
Time and amount of future production and operation costs;
Our ability to deal with low gas prices;
The level of our business strategy and management plan;
Development prospects and real estate acquisitions.
Volatility, particularly the fall or sharp fall and weakness of natural gas or oil prices;
In view of the current price of natural gas, we are able to maintain sufficient liquidity;
Our ability to comply with the covenants and limitations of the agreements governing our debt, or our ability to modify or replace the agreements governing our debt;
Global economic downturn in the future;
General economic conditions, including available credit and available credit lines;
Conditions in the capital market, including access to capital by oil and gas companies;
Fluctuations in oil and gas prices;
Uncertainty in estimation of oil and gas reserves
The impact of competition;
Availability and cost of earthquakes, drilling and other equipment;
How we allocate capital and resources in strategic opportunities;
Operational hazards inherent in oil and gas exploration and production;
Difficulties encountered in the exploration and production of oil and gas;
Difficulties in delivering oil and gas to commercial markets;
Changes in customer demand and producer supply;
The uncertainty of China's ability to attract capital and obtain financing under preferential conditions;
Reduce the loan base under our revolving credit mechanism;
Comply with or change extensive government regulations on oil and gas operations, including those related to climate change and the treatment of greenhouse gases, the production of water, acquisition and use of drilling fluids and other wastes, hydraulic fracturing and water, financial derivatives and hedging activities;
The actions of our oil and gas operators;
Weather conditions.
Table ContentsItem1B.
The employee's opinion was not resolved. Properties.
As of December 31, 2018, the total amount of oil and gas leases owned by the Company was approximately EUR 114,000 (79,000 net)
An acre of land in the Green River Basin in southwest Wyoming.
Most of the planting area covers the Pinedale and Jona fields.
As of December 31, 2018, the total area of Wyoming was about 41,000 square meters (27,000 net)
Developed acres of land, gross (73,000)52,000 net)
Undeveloped acres.
The developed and undeveloped portion accounts for 100% of the company's developed and undeveloped net area.
The company has an area of 89% square meters and a production capacity of 89% square meters in the Pinedale Field.
The development well is a well drilled this year and proved to be an untapped location in the previous year's reserves report.
During 2018, the company participated in the drilling of 107. 0 gross (80. 7 net)
Productive development wells on the Green River Basin real estate, of which 102. 0 gross (77. 1 net)
5 vertical production development wells. 0 gross (3. 6 net)
Level of production development wells.
In December 31, 2018, there were nine people. 0 gross (6. 6 net)
Additional development wells, which began during the year, are either still drilling or operations are suspended at a depth not far from the total depth.
The exploration well is a well drilled in this year and has not been shown to be an untapped location in the previous year's reserves report.
During the 2018 period, the company participated in 28 drilling sessions. 0 gross (19. 8 net)
Productive exploration wells of the nature of the Green River Basin, 14 of them. 0 gross (9. 0 net)
The production wells are straight wells and 14. 0 gross (10. 8 net)
The production exploration wells are horizontal wells.
In December 31, 2018, there were 11 people. 0gross (5. 1 net)
Additional exploration wells started during the year, either still drilling, or operations are suspended at a depth not far from the total depth, so production capacity cannot be determined during the yearend.
The company has 492 square miles of 3D seismic data in Wyoming, which covers 415 square miles when overlap is reduced.
This data includes proprietary data and data licensed from independent seismic contractors and covers the entire production area of the Pinedale and Jonah fields.
During the 2016 period, the company completed a project to merge various data sets and re-process the entire volume. .
During the 2018 period in the third quarter, the company sold about 8,300 of its oil and gas assets (7,800 net)
On acres of INTA Basin, Utah, net cash is $69.
3 million, of which the management fee is $0. 6 million.
The planting area is located in Uinta County, east of Uinta Basin. .
In the fourth quarter of 2017, the company sold a total of 144,000 euros in oil and gas leases (72,000 net)
On an acre of land in the Pennsylvania section of the Appalachian Basin, the cash purchase price is about $115. 0 million.
Reserves of soil and natural gas (1)(2)(3)
Catalogue of proven undeveloped reserves: changes in the company's proven undeveloped reserves (“PUDs”)
The situation for the period from 2018 is shown in the table below.
These changes include an update to the previous PUDs, the addition of new PUDs associated with the current development plan, due to changes in the development plan, the transfer of PUDs to Unverified categories, the impact of changes in economic conditions, including changes in commodity prices.
Year of the company
Within 5 years, the final development plan and the associated PUD comply with the sec pud development guidelines.
The Company reviews all PUDs annually to ensure that there are appropriate development plans.
As of December 31, 2018, 100% of the undiscovered sites were located in Wyoming.
: The conversion rate in 2018 was 44.
According to the PUDs recorded as at December 31, 2018, 3% per cent.
In the year 2018, the company's increased reserves included five-
A year has proved to be an untapped window.
These locations have never been classified as undeveloped locations before.
In 2018, there was no purchase related to the PUD reserve.
: In 2018, price and performance revisions and transfers of previously booked PUD locations were included in the revisions reported.
The ContentsOur internal professional table works closely with nsaid I to ensure the integrity, accuracy and timeliness of the data provided for their reserve estimation process.
In addition, other relevant data such as seismic information, geological maps, logging, production tests, well performance data, operating procedures and related economic standards are provided.
As part of an external engineer's assessment of our reserves, we provide them with all requested information, including our relevant personnel.
The report of the NSAID is included as an exhibitor.
This annual report.
Table of production quantity, average price and average production cost (1)
Content delivery commitment table production wells * development wells for content delivery 31, 2018 with 9. 0 gross (6. 6 net)
Additional development wells that are drilling or suspending operations.
This includes oil wells in the Pinedale Field.
Exploration Well site 3
Legal proceedings.
Information disclosure of mine safety.
The contents of the registrant's common stock, related shareholder matters and the issuer's purchase of equity securities.
Table ContentsUnregistered sales fair SecuritiesTable ContentsItem6.
Select financial data. (1)(2)(3)(4)
Table 7 content website
Management's Discussion and Analysis of the bankruptcy status and operational results of content liquidity and working capital debt.
At re Ultra oil
Table of Operation Results-
Year ended December 31, 2018
For the year ended December 31, 2017, natural gas equivalent production fell slightly to 275 per cent in the year ended December 31, 2018. 1Bcfe from 276.
7 Bcfe in the same period in 2017.
The main reason for the decrease is the sale of non-
Core assets, mainly natural gas, assets and non-assets in Pennsylvania in 2017
In the third quarter of 2018, Utah's core assets were mainly oil.
During the year ended December 31, 2018, revenue increased slightly to $892.
For the year ended December 31, 2018, it was EUR 5 million, compared to $891.
2017 9 million.
This increase was partly offset by a fall in natural gas prices as average oil prices rose.
Catalogue of commodity prices-natural gas.
Realized natural gas prices, including realized gains and losses for commodity derivatives, fell to $2.
£ 48 for the year ended December 31, 2018, compared to $2.
During the period from 2017, 92 per unit.
This Net realized price is a combination of natural prices in Henry Center, including our base differences in NwRox.
As of 2018, the company had made public contracts for derivatives of natural gas prices.
SeeNote 8 understands other details related to these derivative contracts.
During the year ended December 31, 2018, the average price of the company's natural gas was $2, excluding the actual profit and loss of commodity derivatives.
Compared to $2, $77 per unit.
88 in the same period in 2017.
The prices achieved during the year are quite consistent;
However, in fourth quarter of 2018, the actual gas sales price rose due to the disruption of pipelines supplying natural gas from Canada.
The transaction indicates the underlying difference in the forward
The negative impact of the 2019 and 2020 base markets on the Henry Center is about $0. 30 and $0.
46, respectively, highlight the potential fluctuations in our natural gas pricing.
Realized oil prices, including gains and losses from commodity derivatives, rose to $59.
For the year ended December 31, 2018, $44 per barrel, compared to $48.
The period from 2017 was $05 per barrel.
As of December 31, 2018, the company had disclosed derivatives contracts for oil-price commodities.
During the year ended December 31, 2018, the company's average oil price was $62, excluding actual gains and losses from commodity derivatives.
$88 a barrel and $48.
2017 the same period for a barrel 05. .
Operating expenses for lease (“LOE”)
Dropped slightly to $90.
For the year ended December 31, 2018, it was $3 million, compared to $92.
3 million in the same period in 2017, the total number of wells decreased slightly due to the withdrawal of Utah in September 2018.
While the output of Utah's assets is the smallest for the overall combined results, Utah's assets are mainly oil production, with LOE averaging $2.
63 copies per Mcfe before the withdrawal.
Combined LOE costs are flat at $0 per production unit.
£ 33 per Mcfe on December 31, 2018 and 2017. .
In 2012, the company sold a liquid collection pipeline system and a central collection facility (
"Pinedale LGS ")
Certain related real estate rights in pinidale Anticline, Wyoming.
The company entered a long time
Terms, triple net lease agreement with the buyer regarding the use of Pinedale LGS (
"Pinedale Lease Agreement ").
For the year ended December 31, 2018, the company confirmed the operating lease costs of $25 in connection with the Pinedale lease agreement. 9 million, or $0.
$09 per Mcfe compared to $21. 7 million, or $0.
2017 every Mcfe 08.
This increase is due to exceeding certain volume thresholds set out in the original Pinedale lease agreement. .
For the year ended December 31, 2018, the production tax was $93.
Compared with $91, 3 million.
The same period in 2017 was 1 million, or $0.
$34 per Mcfe in 2018, compared to $0.
Every Mcfe 33 in 2017.
The production tax is mainly calculated based on the percentage of production income after certain deductions in Wyoming, which is 10.
5% of revenue for the year ended 2018 and 10.
The same period in 2017 was 2% per cent.
The increase in production taxes was mainly due to the rise in oil prices in December 31, 2018 compared to the same period in 2017.
The Gathering fee increased slightly to $89.
For the year ended December 31, 2018, it was $8 million, compared with $87.
In the same period in 2017.
This slight increase is mainly due to the increase in truck transportation costs when oil pipelines were interrupted in the first half of 2018.
The charge per unit is $0.
For the year ended December 31, 2018, $33 per Mcfe, compared to $0.
£ 31 per Mcfe in December 31, 2017.
Charges for the second half of 2018 averaged $0. 32 per Mcfe.
The cost of DD & A increased to $204.
For the year ended December 31, 2018, $3 million was $161.
9 million in the same period in 2017, due to the company's appearance in the April 11, 2017 chapter proceedings, it has increased its proven untapped reserves and related capital.
DD & a increased to $0 in production units.
$74 per Mcfe in December 31, 2018, from $0.
£ 59 per Mcfe in December 31, 2017.
General and administrative expenses were reduced to $25.
The year ended December 31, 2018 was $0 m, compared to $39.
2017 the same period for 5 million.
The reduction in general and administrative expenses is mainly due to the stock incentive compensation expenses incurred for the year ended December 31, 2017 as part of the 2017 stock incentive plan.
As of December 31, 2018 and 2017, the company confirmed $10.
$9 million and $38.
Pre-5 million respectively
As noted in Note 7, tax compensation costs related to the initial grant.
General and administrative expenses are reduced to $0 per unit.
$09 per Mcfe in December 31, 2018, from $0.
£ 14 per Mcfe in December 31, 2017.
The company recognizes $9.
1 million of the other expenses for the year ended December 31, 2018, of which $4.
9 million is due to accounts that cannot be recovered and $4.
2 million was caused by the relocation of the Houston office.
No other expenses incurred for the year ended December 31, 2017.
Interest payments fell to $148.
For the year ended December 31, 2018, it was $3 million, compared to $361.
2017 the same period 4 million.
The main reason for the decrease in interest expenditure is that interest after application is $175.
2 million admitted on 2017, in connection with the bankruptcy court's order to dismiss our objection after bankruptcy
Petition interest claim, interest rate of default from April 29, 2016 to April 12, 2017.
After December 31, 2018, the United StatesS.
The Fifth Circuit Court of Appeal issued an opinion to revoke the bankruptcy court's order, denying that we have made a claim to make-whole and post-
Apply for interest and send the matter and decision back to the bankruptcy court for further re-consideration.
For additional details on this appeal, please see note 15.
Contract settlement income table (Expense),Net.
The company has raised $12.
Contract settlement income for the year ended December 31, 2018 was $52.
7 million contract settlement costs for the year ended December 31, 2017.
In the fourth quarter of 2018, the company signed a settlement agreement (
"Settlement Agreement ")
Holders of certain claims relating to overresource pre-liability ("Claimant ")
Under the agreement, the parties agree to resolve the outstanding dispute between the claimant and the company.
Under the terms of the settlement agreement, the claimant collectively agreed to pay approximately $16.
To the company 4 million
This is partially offset by the expenses associated with the completion of the settlement agreement.
The company will continueThe two sides have resolved.
On 2017, the company reached a contract settlement of $57.
The 2016 claim in connection with the transportation contract is 0 million.
As of December 31, 2018 and 2017, the company confirmed $10.
6 million deferred proceeds from the sale of liquid collection systems related to Pinedale LGS in 2012.
For the year ended December 31, 2018, the company confirmed a loss of $145.
2 million related to commodity derivatives.
Of this total, the company confirmed $85.
4 million related to realized losses for the year ended December 31, 2018.
Realized gains and losses of commodity derivatives are related to the actual amount received or paid under the company's derivatives contract.
Gains and losses on commodity derivatives also include $59.
As of December 31, 2018, the loss of commodity derivatives had not been achieved by 8 million.
Unrealized gains and losses of commodity derivatives represent non-
Cash charges attributable to changes in fair value of these derivatives over the remaining period of the contract.
Net restructuring projects amounted to $140.
9 million as at December 31, 2017, it consisted primarily of $66.
3 million professional fees and $223 related to Chapter 11 cases of the company.
8 million in connection with the bankruptcy court order, which rejected our objection to the following matters
All claims were offset by gains of $431.
1 million, mainly on behalf of the proceeds of the equity exchange debt related to the company's submission of the former senior notes.
The Company recognized income before income tax as $85.
For the year ended December 31, 2018, it was 6 million per cent and revenue was $163.
2017 the same period for 8 million.
The decrease in income is mainly due to the loss confirmed on commodity derivatives as of December 31, 2018 compared with the gains confirmed in the same period in 2017 and partially offset by the decrease in interest expenditure.
The company recorded $0.
4 million tax expenditures for the year ended December 31, 2018 are related to the finalization of certain early projects.
As of December 31, 2018, the company had recorded valuation allowances for the net balance of all its deferred tax assets.
Some or all of these valuation allowances may be reversed with future revenues over the next period of time.
For the year ended December 31, 2018, the company confirmed net income of $85. 2million or $0.
Diluted $43 per share compared to net income of $177. 1million or $1.
Diluted share in the same period of 08/2017.
Compared with 2018, the main factors for the decrease in income in 2017 were operating income and operating expenses elements and loss of commodity derivatives, offset by the decrease in interest expenses.
Table of Operation Results-
Year ended December 31, 2017
During the year ended December 31, 2016, gas equivalent production fell to 276 per cent in the year ended December 31, 2017. 7Bcfe from 281.
7 Bcfe in the same period in 2016.
The decrease was mainly due to the decrease in annual capital investment as at December 31, 2016.
Realized natural gas prices, including realized gains and losses on commodity derivatives, increased to $2.
For the year ended December 31, 2017, $92 per unit, compared to $2.
During the period from 2016, 31 persons per shift.
The company opened a natural gas production derivative contract during 2017.
In the year to December 31, 2017, excluding the actual profit and loss of commodity derivatives, the average price of the company's natural gas was $2.
$88 per unit compared to $2.
The same period in 2016 was 31 units per unit.
Catalogue of commodity prices-oil.
During the year ended December 31, 2017, the average price of the company's oil was $48.
$55/barrel, $38.
The period from 2016 was 24 barrels.
The company did not have any public oil production derivative contracts in 2017 or 2016.
The rise in the average price of oil and gas was partially offset by the decline in total output, resulting in an increase in revenue to $891.
The year ended December 31, 2017 was 9 million per cent, compared to $721.
2016 1 million. .
LOE increased to $92.
For the year ended December 31, 2017, it was $3 million, compared to $89.
1 million in the same period in 2016, it was mainly related to the increase in the number of production wells.
LOE costs increased to $0 by production unit.
$33 per Mcfe in December 31, 2017, compared to $0.
£ 32 per Mcfe in December 31, 2016. .
For the year ended December 31, 2017, the company confirmed the operating lease costs associated with the $21 Pinedale lease agreement. 7 million, or $0.
$08 per Mcfe compared to $20. 7 million, or $0.
2016 every Mcfe 07. .
For the year ended December 31, 2017, the production tax was $91.
Compared with $69, 1 million.
The same period in 2016 was 7 million, or $0.
$33 per Mcfe in 2017, compared to $0.
£ 25 per Mcfe in 2016.
The production tax is mainly calculated based on the percentage of production income in Wyoming and Utah after certain deductions, which is 10.
2% of revenue for the year ended 2017 and 9.
The same period in 2016 was 7% per cent.
The increase in the production tax was mainly due to the increase in oil and gas prices in December 31, 2017, and the relative contribution of Wyoming's production in 2017 was higher than the same period in 2016.
The charge increased slightly to $87.
For the year ended December 31, 2017, it was $0 and $86.
2016 the same period 8 million.
The charge per unit is flat at $0.
As of December 31, 2017 and 2016, £ 31 per Mcfe.
Due to the termination of our contract with Rocky Mountain Express Pipeline Co. , Ltd (“REX”)
In the first quarter of 2016, there were no material transportation costs for the year ended December 31, 2017.
The transportation fee is $20.
The year ended December 31, 2016 was 0 million.
The cost of DD & A increased to $161.
For the year ended December 31, 2017, $9 million was $125.
1 million in the same period in 2016, due to the company's appearance from the April 11, 2017 chapter proceedings, "PUDs" was added ".
DD & a increased to $0 in production units.
$59 per Mcfe in December 31, 2017, from $0.
£ 44 per Mcfe in December 31, 2016.
General and administrative expenses increased to $39.
For the year ended December 31, 2017, it was $5 million, compared to $9.
2016 the same period for 2 million.
The increase in general and administrative expenses is mainly due to non-
Cash stock incentive compensation expenses incurred as part of the super oil company
2017 the stock incentive plan, part of which is fully attributable on the effective date.
General and administrative expenses are increased to $0 per unit.
$14 per Mcfe in December 31, 2017, from $0.
Mcfe, December 31, 03/2016.
Interest payments increased to $361.
For the year ended December 31, 2017, it was $4 million, compared with $66.
2016 the same period 6 million.
Changes in interest fees include $85.
8 million of post-application interest accrued from April 29, 2016 to April 12, 2017, $100.
4 million of the interest costs incurred by Revolving credit loans, term loans and unsecured notes (
See Note 6 for additional details), and $175.
2 million post-application interest in connection with the bankruptcy court order, rejecting our objection to the post-application interest claim, the default rate from April 29, 2016 to April 12, 2017, as stated in note 12.
During the year ended December 31, 2016, the company spent $7.
2 million costs and costs associated with efforts to restructure debt prior to the submission of Chapter 11 petition.
Contract settlement costs fell to $52.
The year ended December 31, 2017 was $7 million, compared to $131.
For the year ended December 31, 2016, it was 1 million.
The reduction involved a contract settlement of $57.
For the year ended December 31, 2017, an agreement was reached with Sempra Rockies Marketing, LLC, with a contract settlement of $150.
During the year ended December 31, 2016, a million agreement had been reached with REX.
As of December 31, 2017 and 2016, the company confirmed $10.
6 million deferred proceeds from the sale of liquid collection systems related to Pinedale LGS in December 2012.
Catalogue of commodity derivatives: in the year ended December 31, 2017, the company confirmed a $28 gain.
4 million related to commodity derivatives.
Of this total, the company confirmed $11.
4 million per cent of revenue had been realized for the year ended December 31, 2017.
Realized gains and losses of commodity derivatives are related to the actual amount received or paid under the company's derivatives contract.
The gains from commodity derivatives also include $17.
As of December 31, 2017, the commodity derivatives did not achieve the income of 0 million.
Unrealized gains and losses of commodity derivatives represent changes in the fair value of these derivatives for the remainder of the contract.
As of December 31, 2016, the company had no publicly available commodity derivatives.
Net income from restructuring projects was $140.
The cost for the year ended December 31, 2017 was $9 million, compared to $47.
2016 the same period for 5 million.
The increase was due to the company's presence in the year ended December 31, 2017 from Chapter 11 procedures, consisting primarily of $66 in fees.
4 million professional fees, settlement and interest income related to Chapter 11 cases of the company, $223.
8 million in connection with the bankruptcy court order, which rejected our objection to the following matters
All claims were offset by gains of $431.
1 million, mainly on behalf of the proceeds of the equity exchange debt related to the company's submission of the former senior notes.
The company's pre-tax revenue was $163.
Revenue for the year ended December 31, 2017 was $8 million, compared to $55.
2016 the same period for 5 million.
The increase in income is mainly due to the increase in average oil and gas prices and the net impact of restructuring projects, partially offset by the increase in interest costs, DD & A and general and administrative costs for the year ended December 31, 2017.
The company recorded $13.
3 million tax benefits related to expected USS.
Cash refunds for the year ended December 31, 2017.
As of December 31, 2017, the company had made a basic valuation subsidy for the balance of all its net deferred tax assets.
Some or all of these valuation allowances may be reversed with future revenues over the next period of time.
For the year ended December 31, 2017, the Company recognized net income of $177. $1 million or $1.
The diluted $08 per share compared to net income of $56. $2 million or $0.
Diluted 70 per share for the same period in 2016.
The increase in income is mainly due to the increase in average oil and gas prices and the net impact of restructuring projects, partially offset by the increase in interest costs, DD & A and general and administrative costs for the year ended December 31, 2017.
During the year ended December 31, 2018, we funded our business mainly through operating activities under the revolving credit mechanism and cash flows generated from loans.
In addition to the cash flow generated by operations, revolving credit is the main source of our liquidity.
As at December 31, 2018, the company reported a cash position of $17. 0 million.
The company had $104 as of December 31, 2018.
Under the revolving credit mechanism, the outstanding loan is 0 million.
In addition to outstanding loans under Revolving credit loans, the company has $1.
Starting from 2022, 9 billion of the other debts outstanding in the form of fixed-term loans, secured notes and expired unsecured notes.
The loan base is $325.
0 million of availability.
Availability may be restricted under compliance with financial covenants;
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