ATP beefs up deepwater GoM presence

Offshore staff

US, GoM-ATP Oil & Gas has recently made a number of acquisitions that are strategically designed to increase its presence in the deepwater Gulf of Mexico.

The company acquired the 100% working interest in Atwater Valley Block 63, also known as Telemark. Once approval is obtained from the Minerals Management Service, ATP will be the designated operator of Telemark. Norsk Hydro USA Oil & Gas was the previous operator of the block, which is located in 4,300 ft of water in the central GoM. A well drilled at Telemark in 2003 encountered approximately 140 net feet of hydrocarbons in Miocene sands.

ATP also acquired a 25% working interest in Mississippi Canyon blocks 941 (aka Mirage) and MC 943 (Oasis), increasing its ownership to 100% in each of these blocks. The company was already operator of these blocks, which are in between 3,800 and 4,300 ft of water and are located approximately 7 miles north of Telemark. At Mirage, a well was drilled in 1998 that encountered approximately 87 net feet of hydrocarbons in two sands.

ATP is already the 100% owner and operator of MC 942 (Morgus). A well was also drilled in 1998 at Morgus that encountered approximately 55 net feet of hydrocarbons in one sand layer.

ATP is working with its independent engineers, and the company is optimistic about recording proved reserves from Telemark, Mirage and Morgus in 2006. ATP expects to issue its own estimate of recoverable hydrocarbons within the next several weeks.

"This acquisition facilitates a strategic development of the Mississippi Canyon area. With its 100% working interest in adjoining discoveries and high quality prospects at Mirage, Oasis, Telemark and Morgus, ATP intends to develop the reserves encountered from a production facility that ATP is planning to install in 2008," said Gerald W. Schlief, senior VP of ATP.

News of these acquisitions sent ATP's stock price up slightly to close at $40.47 on July 26th, a 1.66% increase from the previous day.

7/26/2006