ATP secures rigs for 2008 and 2009 developments

ATP Oil & Gas has secured four drilling rigs for 2008 and 2009.

Offshore staff

HOUSTON -- ATP Oil & Gas has secured four drilling rigs for 2008 and 2009. The rigs are the Seadrill Americas West Sirius, the Hercules Rig 211, the Ensco 72, and the Diamond Ocean Victory.

The SeadrillWest Sirius, a dynamically positioned rig, is expected to be on location over the Telemark Hub for a 90-day period beginning before the end of July 2008. The West Sirius will drill and run casing on the upper sections of two wells at Mirage (Mississippi Canyon block 941) and, if time permits, take a third well to completion at Morgus (Mississippi Canyon block 942). The bottom section of the remaining wells will be drilled and completed with the Nabors 202 platform rig, to be installed on the ATP MinDOC I, a floating drilling and production facility that will be moored at Mirage/Morgus early in 2009.

ATP has recently entered into a letter of intent for the semisubmersibleDiamond Ocean Victory to drill and run casing in four wells at Telemark (Atwater Valley block 63) beginning in mid-2009. Similar to the operation at Mirage/Morgus, after the pre-drilling is complete, ATP will move on location its second MinDOC, the MinDOC II. The Nabors 202 platform rig will then be transferred to the MinDOC II where it will be used to finalize drilling and complete the four wells.

TheDiamond Ocean Victory, a moored rig, is scheduled to sidetrack and complete one well and complete a second well on the Clipper (Green Canyon block 299 and block 300) during the first half of 2009 after the rig concludes its current assignment.

TheDiamond Ocean Confidence, a dynamically positioned rig, is scheduled to arrive in 2Q 2009. During a 150-day period, ATP expects to sidetrack/drill and complete two development wells, one at King's Peak (Mississippi Canyon block 217) and one at Aconcagua (Mississippi Canyon block 305). After completing these two wells the vessel will depart for another job and return after approximately one year to sidetrack/drill and complete two additional wells, one each at Aconcagua and De Soto Canyon block 133.

After installation of a tripod platform, the jackupHercules 211 is scheduled to be on location at West Cameron block 462 during August 2008. It is scheduled to complete two previously drilled wells and prepare them for production in 3Q 2008.

The jackupEnsco 72 is scheduled to arrive at Wenlock in the North Sea during 4Q 2008. In December 2007, ATP completed and placed on production its first well in the Rotliegend formation at Wenlock. The vessel is scheduled to drill a second development well into the Rotliegend reservoir as well as a new appraisal/development well in another section of the block. ATP holds an option for a third well to be drilled with the Ensco 72. If exercised, the third well could be drilled at ATP's developments at Tors or Wenlock.

"These recent and existing commitments allow us to maintain our schedule for developing our key properties," says George Morris, ATP's COO. "We now have secured rigs for our entire 2008 scheduled drilling program and for all but one well of our 2009 drilling program."

07/25/2008

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