ATP Says Production Operations Returning to Normal
ATP Oil & Gas says its production platforms have been examined, where possible boarded for closer inspection, and the repair process has begun. Initial reports show minimal damage to most platforms with some platforms, primarily in the Western Gulf, sustaining no damage. A platform at Ship Shoal 358 appears to have sustained the most damage, however, preliminary estimates indicate the platform can be repaired and resume production in early 2006. In addition to other ATP properties back on production is King's Peak, the Company's most recent acquisition, which is producing at a rate of 40 MMcfe/d gross (ATP has a 55% working interest). Depending on access to infrastructure and availability of service facilities, ATP expects to restore all remaining production except for Ship Shoal 358 during the fourth quarter of 2005. Additional information on production and operations will be reported after further assessment.
Hurricane Rita and its predecessor Hurricane Katrina impacted the timing of, but did not affect the development operations themselves, at the Company's Mississippi Canyon 711 (MC 711) property. Neither the Ocean Voyager nor the Rowan Midland was at MC 711 when Rita made its pass through the Gulf. The Diamond Offshore Drilling, Inc. (Diamond) semi submersible drilling rig Ocean Voyager was undergoing repairs at Sabine Pass as a result of Hurricane Katrina. On September 7, 2005, Diamond projected reported repairs to take four to eight weeks, after which the rig is to return to ATP's MC 711 development. Modifications to the Rowan Midland, the production facility, continue with module hookup in progress. According to reports from both Diamond and Rowan, only slight delays to the schedule are anticipated. Based on these reports and current development operations, ATP continues in its plan to deliver first production at MC 711, ATP's largest property in terms of proved reserves, late in the 4th quarter of 2005. ATP will provide progress reports on bringing MC 711 to production as it receives additional information on the development operations.
The hurricanes had no impact on ATP's North Sea operations with
development operations proceeding on schedule. At L-06d in the Netherlands,
first production is projected before year-end 2005. Helvellyn in the UK
Sector is projected to return to production during the middle of the fourth
quarter 2005. At Tors in the UK Sector, first production is scheduled for
early 2006 with the continuing possibility of production before year-end 2005.
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