ATP Acquires Shelf Acreage in the Gulf of Mexico

ATP Oil & Gas has acquired substantially all of the oil and gas properties of a privately held company. These properties are located on the Gulf of Mexico Shelf and contain proved producing reserves, proved undeveloped reserves as well as probable and possible reserves. At the request of the seller, ATP has agreed not to disclose the total reserves associated with the transaction; however, the reserves will be included in ATP's year-end 2005 reserve report. In addition to the proved, probable and possible reserves, there are identified exploration opportunities on certain blocks. Total consideration paid at closing was $40 million. A contingent payment of an additional $10 million will be required if the properties achieve a designated production level. ATP will be the operator of most of these blocks. Currently, the net production from these properties is approximately 25 MMcfe per day. Gerald W. Schlief, Senior Vice President of ATP stated, "ATP is pleased with this strategic acquisition. These properties add significantly to our current production levels. In addition, they provide future development opportunities in the Gulf of Mexico that will complement our current development program."