ATP Receives Deepwater Royalty Relief for Ladybug Field

ATP Oil & Gas Corporation was awarded deepwater royalty relief by the Minerals Management Service for the Garden Banks Block 409 Field, known as "Ladybug," which delivered cumulative gross production of 1 million barrels in only 135 days at an average of 7,418 barrels of oil per day (Bopd) and 8 million cubic feet of natural gas per day (MMcfd).

The Minerals Management Service of the U.S. Department of the Interior grants federal royalty relief as incentive to independents to actively develop marginal properties in the Gulf of Mexico and address the nation's energy needs. Royalty relief adds an additional 467 Bopd and an additional .47 MMcfd net to ATP's interest. With royalty relief, the net production to ATP from Ladybug is approximately 3,600 Bopd and 3.6 MMcfd.

ATP is one of the most active operators utilizing subsea technology in the Gulf of Mexico. By connecting the two Ladybug subsea wells with two six-inch eighteen-mile flow lines, ATP commenced production in September 2001 from the Garden Banks Block 409 Field located in approximately 1360 feet of water. ATP and Unocal Corp. each hold a 50% working interest, with ATP as operator.