ATP to Acquire Rowan Midland for Gomez

ATP Oil & Gas will acquire the Rowan-Midland mobile offshore drilling unit from Rowandrill, Inc., an operating subsidiary of Rowan Companies, Inc., to serve as the floating offshore production platform for the area around ATP's Mississippi Canyon 711 ("MC 711") development ("Gomez"). ATP previously had the rig committed under a lease, but acquiring the Midland gives ATP significant short term and longer term operating flexibility. Initial production in the area will come from ATP's Gomez wells in MC 711.

"We expect Gomez to be a very significant and long-term development for ATP," stated Leland Tate, ATP's Chief Operating Officer. "There are eight identified hydrocarbon sands in the four wells that have been drilled at Gomez, but we have only recorded proved reserves from three of the sands. Initially, we will produce from these three zones but later we expect to develop the remaining sands for additional production. We also acquired at a recent lease sale Mississippi Canyon 667/668 ('MC 667', 'MC 668'), two blocks adjacent to and north of MC 711. After we establish production at MC 711 we will evaluate the potential of extending Gomez's development into these blocks. As a floating offshore production platform, the Midland will be able to service the entire development area at MC 711, MC 667 and MC 668."

T. Paul Bulmahn, ATP's Chairman and President said, "The acquisition of the Midland significantly increases our control and long-term use of the production facility at Gomez. We are now able to remove unnecessary drilling equipment, making the unit more efficient for our use, which results in cost savings for ATP. Additionally, other companies are pursuing exploration and development opportunities in the general vicinity of Gomez. With the agreement to acquire the Midland, we should be a likely host for these surrounding opportunities."

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