ATP Expands Development Operations at Ship Shoal 358

ATP Oil & Gas has expanded development operations and production from its third well at Ship Shoal Block 358. The development at Ship Shoal 358, originally scheduled for two wells, was expanded by the additional drilling due to the positive performance from the first two wells.

ATP reached total depth at its Ship Shoal 358 A-3 well at a depth of 8,599' TVD with gas pay in three Lentic sands. The well is completed in the lowest Lentic sand with plans to move to the upper sands over the life of the well. Ship Shoal 358 has total current gross production of approximately 19.3 MMcf/d of natural gas and 1,750 Bbls/d of condensate from all three wells. ATP holds a 51 percent working interest and is the operator.

Stated T. Paul Bulmahn, Chairman and President of ATP, "With the addition of the third well at Ship Shoal 358, ATP has placed six wells on production, five in the U.S. and one in the North Sea, during the first half of 2004. ATP expects to continue its active development program into the second half of 2004 with development activities at West Cameron 237, Eugene Island 30/71 and other ATP operated projects both in the Gulf of Mexico and the North Sea."