ATP and its wholly owned subsidiary have closed the sale and purchase agreement for GBP 265 million with EDF Production UK Limited ("EDF"), a subsidiary of EDF International of France, for certain of ATP's UK assets in the North Sea. Effective July 1, 2008, the agreement transfers 80% of ATP's UK interest in its Tors (a 68% working interest) and Wenlock (an 80% working interest) properties to EDF.
In addition to this transaction, EDF has a later option for a period of sixty days to acquire the remaining ATP interests on terms similar to the original transaction. Pending the decision by EDF for the remaining 20%, ATP UK will remain as operator of both Tors and Wenlock.
T. Paul Bulmahn, Chairman and CEO of ATP, stated, "Closing a deal of this magnitude in these markets is a great testimony to the long-term vision of both ATP and EDF. We are pleased to have EDF as a partner in our North Sea production and development program. ATP will use 75% of the net proceeds from this transaction to reduce its debt. In addition, ATP will use the remaining proceeds to further its 2008 and 2009 development program and for other corporate purposes. Once again, this is testimony to the value created by the employees of ATP and in particular to the staff at ATP's UK office."
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