ATP Improves Credit Facility

ATP Oil & Gas has amended and improved the terms of its Senior Secured Credit Facility by expanding the credit facility to $350 million and reducing the interest rate:

* Adding $121 million in additional liquidity

* Paying off and eliminating the second lien tranche of the credit

facility which carried an interest rate of LIBOR plus 10%

* Decreasing the overall interest rate of the credit facility from LIBOR

plus 6.847% to LIBOR plus 5.500%

* Amending covenants within the credit facility to provide more flexibility to ATP

* Extending the maturity by one year to April 2010

T. Paul Bulmahn, ATP's Chairman and President said, "ATP's performance over the past year has allowed us to expand our facility while also significantly improving its terms. We are exceptionally pleased with the reception of the investment community with our transaction as participation was more than two-times over subscribed. The added liquidity will enable us to continue our expanded development and acquisition program in the Gulf of Mexico as well as provide the financial strength to accelerate our activities in the North Sea, particularly at The Tors and at Cheviot. Lowering our cost of capital and eliminating our second lien tranche should provide added equity returns to our shareholders."

Credit Suisse First Boston acted as sole lead arranger for the financing.

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