HOUSTON -- Ultra Petroleum Corp. said Monday that it has agreed to buy oil-producing land in Utah for $650 million.
The deal is expected to close in December, the Houston-based oil and gas company said. The properties are located in what is known as the Uinta Basin.
"This oil acquisition fits our strategy of profitable growth with exceptional returns at oil prices well below $75 per barrel," said Michael Watford, Ultra Petroleum's chairman, president and CEO, in a statement.
The properties produce 4,000 barrels of oil per day from 38 producing wells, the company said.
Watford said that the deal will pay for itself in five years.
Shares of Ultra Petroleum rose $1.09, or 5.2 percent, to $21.99 in morning trading Monday. Its shares are up 18 percent so far this year.