ATP Closes on Gulf of Mexico Acquisitions

ATP Oil & Gas Corporation today announced the closing of its acquisition of three producing blocks in the Gulf of Mexico with estimated net proved reserves of 13.5 billion cubic feet from a large independent. The purchase price, excluding closing adjustments, was $7.75 million. The acquisition is effective January 1, 2001, and is expected to be immediately accretive to earnings and Ebitda, production and reserves.

The three new blocks, West Cameron 237, South Marsh Island 7 and Main Pass 84, each have a platform and are currently producing about 2 million cubic feet per day of natural gas. The transaction is consistent with the company's strategy of purchasing properties with proved reserves and creating a development plan to bring on additional production quickly. This acquisition will contribute to the company's growth for 2001 and beyond.

Development operations are expected to begin in the third quarter of this year and production rates are expected to more than triple.


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