Portnoy Legislation: Lawsuit filed in favor of Extremely Petroleum, Inc. traders – GlobeNewswire
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LOS ANGELES, Sept. 1, 2020 (GLOBE NEWSWIRE) – Portnoy law firm advises investors that a class action lawsuit (OTCMKTS: UPLCQ) has been filed on behalf of Ultra Petroleum, Inc. ("Ultra" or "the Company") who acquired securities between April 13, 2017 and August 8, 2019.
Investors are encouraged to contact Attorney Lesley F. Portnoy by phone at 310-692-8883 or email to determine eligibility to participate in this promotion or click here to join the case.
In this lawsuit, certain current and former officers and / or directors of Ultra Petroleum are charged with violating the Securities Exchange Act of 1934. Ultra Petroleum is an oil and gas development company with principal assets in the Jonah and Pinedale fields in southwest Wyoming's Green River Basin. Historically, over 80% of the company's sales come from the development and sale of natural gas. Ultra Petroleum filed for bankruptcy protection on May 14, 2020. Ultra Petroleum is not named as a defendant in the lawsuit.
In April 2017, at the start of the class period, Ultra Petroleum completed a court-supervised reorganization under Chapter 11 of the US Bankruptcy Act. According to the defendants, Ultra Petroleum was in "growth mode" at the time it exited bankruptcy. Ultra stated that it stands ready to maximize the value of its sizeable oil and gas reserves (valued at $ 4.19 billion, including $ 1.5 billion in proven undeveloped reserves) by producing ramped up in 2017 and 2018, and that it did, Ultra is expected to produce between 290 and 300 billion cubic feet ("Bcfe") in 2017, with production growing 25% from those numbers in 2018. Ultra showed it was over had the financial and productive flexibility to withstand even a low commodity price environment and was in preparation to advance well development with 10 rigs operating through 2018 based on an estimated capital budget of $ 788 million. That plan included the start of a horizontal well program that Ultra executives claimed would significantly expand the production capacity of Ultra's existing wells.
The complaint alleges that these and similar statements made by Ultra during the classroom were misleading and materially incorrect. Throughout the class period, Ultra has, among other things: (i) significantly overestimated the value of Ultra's oil and gas reserves; (ii) have materially misrepresented their ability to increase production and financial flexibility; (iii) did not disclose any extreme sensitivity of Ultra to a slight decline in natural gas prices; and (iv) significant hidden setbacks in the Ultra's touted horizontal drilling program.
Shortly after going bankrupt in early August 2017, Ultra Petroleum released a series of revelations showing that it was unable to increase production by any significant amount and that its wells were worth a fraction of their previously estimated values. Finally, on August 9, 2019, Ultra Petroleum announced disappointing results for the second quarter of 2019, announcing that total revenues for the quarter were down 18%, that Ultra's horizontal drilling program had effectively halted, and that its 2019 result was forecast Capital investments were reduced in the range of $ 260 to 290 million and annual production in a range of 238 to 244 Bcfe. Ultra Petroleum stock's price fell 31% on the news to just $ 0.09 per share and continued to fall to just $ 0.01 per share, 99% below the stock's class high. The Ultra Petroleum share was delisted on August 22, 2019. And in May 2020, Ultra had to initiate bankruptcy proceedings again in order to achieve a judicial restructuring.
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Portnoy law firm represents investors in pursuing claims arising from corporate infringements. The company's founding partner has confiscated over $ 5.5 billion for aggrieved investors. Lawyer advertising. Previous results do not guarantee similar results.
Lesley F. Portnoy, Esq.
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