Biopat To Partner With Ultra Petroleum In Wyoming Gas Play.

MONTREAL--(BUSINESS WIRE)--Oct. 14, 1997--BIOPAT CAPITAL (Alberta Stock Exchange:BIP.) ULTRA PETROLEUM (VSE:UP.) Biopat Capital Inc. ("Biopat") today announced that Biopat has entered into a letter agreement dated October 7, 1997 (the "Letter Agreement") with Ultra Resources, Inc. and Ultra Petroleum (USA) Inc. (collectively known as "Ultra"), subsidiaries of Ultra Petroleum Corp. pursuant to which Biopat has acquired certain rights to earn an interest in acreage totalling approximately 35,600 acres within the Green River Basin, including the North Lizardhead area, North Lizardhead area, Antelope Ranch area and West Billy area, all located in Sublette County, Wyoming.

Pursuant to the Letter Agreement, in the North Lizardhead area, Biopat has agreed to pay a prospect fee to Ultra upon execution of the Letter Agreement. Upon notification by Ultra of the issuance of a permit to drill a test well, Biopat has agreed to pay 100 percent of Ultra's proportionate share of the cost to drill and complete the test weel to a depth of 12,500 feet to test if the well is capable of producing if paying quantities. If successful, Biopat will earn an undivided 50 percent interest in Ultra's (approximate) 75 percent working interest in 2,000 acres in the North Lizardhead area. Biopat and Ultra expect the first test well on North Lizardhead property to be spudded within 45 days.

In the Northeast Lizardhead area, pursuant to the Letter Agreement Biopat will also have the option to pay a second prospect fee of US$1 million. Upon notification by Ultra of the issuance of a permit to drill a test well, Biopat has agreed to pay 100 percent of Ultra's proportionate share of the cost to drill and complete a test well to a depth of 12,500 feet to test if the well is capable of producing in paying quantities. If successful, Biopat will earn an undivided 50 percent interest in Ultra's (approximate) 75 percent working interest in 2,284 acres in the area. In the event Biopat drills and completes both test wells in the North and Northeast Lizardhead areas, Ultra will assign and undivided 50 percent interest of Ultra's (approximate) 75 percent working interest in an additional 640 acres. Western Gas Resources Inc. (NYSE:"WGR") holds a 25 percent working interest in the North & Northeast Lizardhead areas which are located approximately 12 miles north of Ultra's Jonah Field discovery.

In both the Antelope Ranch area and West Billy area, on or before November 1, 1997 Biopat will have to pay Ultra a US$500,000 prospect fee for each area. Upon spudding of a test well in the area, Biopat will have the option to pay an additional US$500,000 prospect fee and upon notification by Ultra of the issuance of a permit to drill a test well, Biopat has the option to pay 100 percent of Ultra's proportionate share of the cost to drill and complete a test well to a depth of 12,500 feet. If the first well in each prospect is capable of producing in paying quantities, Biopat will earn an undivided 50 percent of Ultra's 85 percent working interest in 6,800 acres in the Antelope Ranch area and in 23,240 acres in the West Billy area. The Antelope Ranch area is located approximately 36 miles to the Northwest of Ultra's Jonah field discovery, and the West Billy area is located approximately 26 miles to the West Northwest of Ultra's Jonah field discovery.

In the event any of the test wells are not capable of producing paying quantities, Biopat has the option of drilling additional test wells in each area in order to earn its interest.

It is contemplated that a formal agreement with respect to the farm-in will be entered into and it is subject to Biopat completing its due diligence with respect to the interest of Ultra in the contract area.

Biopat also announced that Canaccord Capital Corporation ("Canaccord") has agreed to act as agent to offer for sale, on a best efforts basis, up to 7,000,000 Special warrants at a price of $1.52 per Special warrant for gross proceeds of $10,640,000. Each Special Warrant shall entitle the holder thereof to acquire, at no additional cost, one common share of Biopat (the "Common Shares") and one share purchase warrant of Biopat (the "Warrant"). Each Warrant shall entitle the holder to purchase one additional common share of Biopat at an exercise price of $1.60 per share for a period of two (2) years after the closing date.

Canaccord will be paid a commission equal to 10 percent of the gross proceeds of the private placement of Special Warrants in cash or securities and will be granted an agent's option to acquire that number of Special Warrants equal to 10 percent of the Special Warrants sold at a price of $1.52 per Special Warrant.

Biopat and Canaccord expect the private placement to close in the next three weeks and Biopat has committed to file a prospectus in certain jurisdictions for the purpose of qualifying the Special Warrants within 120 Days of the closing date. In the event Biopat fails to obtain a receipt for a prospectus qualifying the Special warrants within 120 Days of the closing date, each holder of Special Warrants will be entitled to receive 1.1 Common Shares and 1.1 Warrant for each Special Warrant held.

Biopat has agreed to obtain shareholder's written consent for the transaction. The Company has also agreed to the filing of an engineering report currently being commissioned and the submission of a Filing Statement with The Alberta Stock Exchange.

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The Alberta Stock Exchange has neither approved nor disapproved of the information contained herein.

CONTACT: Biopat Capital Inc.

Alain Lambert, 514/844-5973

or

Ultra Petroleum Corporation

Mark Jarvis, 604/669-0964