Re: In for some 38.60. Target 51/Stop 35>> 8/31 Ultra Petroleum upped to Overweight from Neutral and added to Focus List at JP Morgan, tgt $47 (UPL) 38.59 : The upgrade is based on high level of confidence that co will be able to downspace its Pinedale acreage in southwestern Wyoming to 20-acres per well from the current 40-acres per well minimum. Firm says that timing for request and approval from the WOGCC is likely in 4Q04 or early-2005. They also believe it is likely that co will eventually receive approval to downspace Pinedale even further to 10-acres per well. Given the expected downspacing, firm boosts its est of co's net recoverable reserves. They also note following potential catalysts: results from a deep well at Pinedale testing the Rockspring and Blair formations (Q4); continued strong results from China; a meaningful ramp-up in production in 2H04 that should exceed guidance; a 2004 reserve report showing 35% organic growth in proved reserves.