ATP Begins Initial Production from Ship Shoal 358

ATP Oil & Gas has begun initial production from the A-2 well at Ship Shoal Block 358 in the Gulf of Mexico. In addition, because of the positive performance of the A-1 and A-2 wells, the drilling of a third well at Ship Shoal Block 358 has been added to the ATP 2004 development plan.

ATP reached total depth at its SS 358 A2 well at a depth of 7819 TVD with gas pay in the lentic sand. The well commenced production on April 24, 2004 and current gross production is 4.2 MMcf/d of natural gas and 650 Bbls/d of condensate. ATP holds a 51 percent working interest and is the operator.

"ATP is pleased to announce the commencement of production of our fifth offshore well, one in the United Kingdom North Sea and four wells in the Gulf of Mexico, since February 1, 2004. Superior drilling results lead us to scheduling a third well to be drilled at Ship Shoal Block 358. With our elevated production rates, we are presently able to efficiently advance our development inventory," stated T. Paul Bulmahn, Chairman and President of ATP.