The Company intends to use the net proceeds from this offering to accelerate the development of selected properties both in the North Sea and Gulf of Mexico, add properties to its 2005 development program, and for acquisitions and general corporate purposes. By structuring the issue with a non-cash dividend, ATP is able to utilize the Company's future cash flow for accelerated and added development, the primary use of proceeds from the offering. More specific details of the expanded capital program will be included in the Company's second quarter earnings release, which is expected later this week.
The issue has no stated maturity, there is no common share dilution to existing shareholders as the issue is not convertible into common shares of the Company, there is no added debt to impact lenders and the issue can be redeemed at the Company's option after February 2006. The dividend becomes payable in cash after April 2011 or after the repayment of the current outstanding term loan, whichever comes first.
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