ATP Improves Returns by Adding Partner at Tors
ATP Oil & Gas Corporation and its wholly owned subsidiary, ATP Oil & Gas (UK) Limited, has agreed to sell 15% of the ATP 100% working interest in the Tors fields (Garrow and Kilmar) in the Southern Gas Basin of the UK North Sea to Sojitz Energy Project Limited ("Sojitz") a wholly owned subsidiary of Sojitz Corporation. The transfer is subject to approval of the Secretary of State for Trade and Industry. Upon approval, Sojitz will pay a disproportionate share of development costs for its interest in Tors. ATP Oil & Gas (UK) Limited is the development and production operator of the Tors fields.
Development at Tors continues on schedule. The ENSCO 70 rig is working on location to sidetrack and complete two wells and drill a third well. The Tors Kilmar jacket and deck is already installed, and installation of both Tors pipelines is practically complete. First production at Kilmar is expected from the initial well early in 2006 with the next two wells following in sequence. The development at Tors Garrow is also currently scheduled for 2006 production. T. Paul Bulmahn, Chairman & President of ATP, stated, "With Tors having reached a value creation point, we are pleased to add a quality partner like Sojitz to participate with ATP in its development. They are a current working interest partner of ours in fourteen of our Gulf of Mexico developments and we are delighted to welcome them to join us in the North Sea. This sale of only 15% in Tors allowed ATP to reduce its capital exposure, lower its development cost per Mcfe, with the net result of improving the overall return for the project and our shareholders."
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Company: Sojitz Corporation more info
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