ATP Oil & Gas has acquired a 100% interest in one block, added a 25% interest in two currently owned blocks and is now the 100% owner and operator of four strategically located blocks in the Mississippi Canyon/Atwater Valley Area in the deepwater Gulf of Mexico. ATP acquired the 100% working interest in Atwater Valley Block 63 ("Telemark"). Once approval is obtained from the Minerals Management Service, ATP will be the designated operator of Telemark. ATP also acquired a 25% working interest in Mississippi Canyon ("MC") Blocks 941 ("Mirage") and MC 943 ("Oasis"), increasing its ownership to 100% in each of these blocks. ATP is currently the operator of Mirage and Oasis properties. ATP is already the 100% owner and operator of MC 942 ("Morgus"). Telemark is located approximately seven miles south of the Mirage, Oasis, and Morgus area. The blocks are located in water depths ranging from approximately 3,800 to 4,400 feet of water.
Previous drilling at these locations has encountered hydrocarbons on three of the four blocks. A well was drilled at Telemark in 2003 that encountered approximately 140 net feet of hydrocarbons in Miocene sands. At Mirage, a well was drilled in 1998 that encountered approximately 87 net feet of hydrocarbons in two sands. A well was also drilled in 1998 at Morgus that encountered approximately 55 net feet of hydrocarbons in one sand. ATP is working with its independent engineers and the company may be able to record 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," stated Gerald W. Schlief, Senior Vice President of ATP.
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