ATP Ends 2006 with Record Reserves, Production

ATP Oil & Gas Corp. on Friday announced record reserves in all categories, an annual production increase of 155% and a robust reserves replacement ratio of 315%.

Reserves and Production - ATP reported independent third-party year-end 2006 total proved reserves of 637 Bcfe, an increase of 109 Bcfe (+21%) and proved plus probable reserves of 1,005 Bcfe, an increase of 246 Bcfe (+32%). Equally impressive was the growth in proved developed reserves, increasing 85 Bcfe (+67%) to 214 Bcfe.

                                            December 31, 2006
                                   Oil (MMBbls) Gas (Bcf) Total (Bcfe)
                                   ------------ --------- ------------
Proved reserves as prepared by
 third-party engineers
  Developed                                 14       131          214
  Undeveloped                               37       198          423
                                   ------------ --------- ------------
Total proved                                51       329          637

Proved & probable reserves as
 prepared by third-party engineers
  Developed                                 18       183          289
  Undeveloped                               55       384          715
                                   ------------ --------- ------------
Total proved & probable                     73       568        1,005

Management's estimate of
 additional logged hydrocarbons
 (1)                                        20        39          156
                                   ------------ --------- ------------
Total recoverable hydrocarbons              92       607        1,161
                                   ============ ========= ============

(1) Includes January 2007 acquisitions

ATP's record production of 50.9 Bcfe includes the Gulf of Mexico, 38.7 Bcfe (+107%) and the North Sea, 12.2 Bcfe (+869%). Even with record production in both areas, ATP achieved a 315% proved reserve replacement ratio for 2006. For the three-year period ending December 31, 2006, ATP achieved a three-year reserve replacement ratio of 459% from production of 93 Bcfe and 427 Bcfe in net reserve additions from all sources during the 2004 - 2006 period. Costs incurred for oil and gas expenditures for the same three-year period were $1.17 billion, which when divided by three-year reserve additions from all sources, results in three-year finding and development costs of $2.75 per Mcfe.

All reserves and hydrocarbons included in this release are shown net to ATP's working interest ("W.I."). On March 5, ATP will make accessible copies of certification letters from its independent third-party reservoir engineers under the Investor Info-Annual/Quarterly Reports section of its website at

In addition to third-party proved and probable reserves, ATP estimates logged hydrocarbons for properties that have been recently acquired and for properties that have not yet been evaluated by its third-party reservoir engineers. For example, on August 3, 2006, management estimated 360 Bcfe of logged hydrocarbons not included in ATP's December 31, 2005 reserve report. At December 31, 2006, 297 Bcfe (+83%) of the 360 Bcfe were recognized as proved or probable reserves in the company's third-party engineering reports. Recoverable hydrocarbons not yet recognized as proved and probable by third-party reservoir engineers include 22 Bcfe at Green Canyon 37 (currently in third-party reservoir engineers' possible reserves) and 38 Bcfe at Cheviot (management's estimate of additional recoverable hydrocarbons). In addition, 16 Bcfe at Garden Banks 388, 12 Bcfe at Ship Shoal 351 and 9 Bcfe at High Island 392 have not yet been evaluated by third parties. Management's estimate of 156 Bcfe shown in the previous table includes these properties as well as year-to-date 2007 acquisitions.

ATP's 1,005 Bcfe of proved and probable reserves are located 47% in the Gulf of Mexico Deepwater, 10% on the Gulf of Mexico Shelf and 43% in the North Sea.

                                            December 31, 2006
                                     Gulf of Mexico  North Sea  Total
                                         (Bcfe)       (Bcfe)    (Bcfe)
                                    --------------- ------------------
Proved reserves as prepared by
 third-party engineers
  Developed                                    166         48     214

  Undeveloped                                  193        230     423
                                    --------------- ---------- -------
Total proved                                   359        278     637
                                    =============== ========== =======

Proved & probable reserves as
 prepared by third-party engineers
  Developed                                    229         61     289
  Undeveloped                                  348        367     715
                                    --------------- ---------- -------
Total proved & probable                        577        428   1,005
                                    =============== ========== =======

PV10 and Valuation - At December 31, 2006, ATP's SEC pre-tax PV-10 of proved reserves was $1.3 billion, and the pre-tax PV-10 of proved and probable reserves was $2.4 billion (SEC year-end prices). At December 31, 2006, the pre-tax PV-10 of proved, probable and logged hydrocarbons of 1,161 Bcfe was $4.3 billion (strip prices at December 29, 2006).

Top Properties - Based on proved and probable reserves, ATP's top five properties are listed below. Collectively, the top five properties, all of which are operated by ATP, represent 77% of proved and probable reserves. The Gomez Hub (100% W.I.) and Tors Hub (85% W.I.) are currently producing with additional development planned in 2007. ATP plans major infrastructure development at its Telemark Hub (100% W.I) in 2007 with first production scheduled for late 2008. ATP expects to receive field development plan approval at Cheviot (100% W.I.) in mid-2007, at which time the company will finalize engineering and begin procurement. Development is scheduled for 2008 and 2009 with first production in late 2009. The Canyon Express Hub, which includes King's Peak (55% W.I.), is scheduled for development in 2008 and 2009.

                                         December 31, 2006
                                      Telemark Gomez   Tors    Express
                              Cheviot    Hub     Hub     Hub     Hub
                              North   Gulf of  Gulf of North  Gulf of
                                Sea    Mexico  Mexico    Sea   Mexico
                              (Bcfe)   (Bcfe)  (Bcfe)  (Bcfe)  (Bcfe)
                              ------- -------- ------- ------ --------
Proved reserves as prepared
 by third-party engineers        181      135     117     65       31

Probable reserves as prepared
 by third-party engineers         69       57      40     42       43
                              ------- -------- ------- ------ --------
Total proved & probable          249      192     157    107       73
                              ======= ======== ======= ====== ========

ATP announced two major acquisitions in January 2007. The first acquisition was at ATP's Canyon Express Hub and included a 50% W.I. at Aconcagua, a 17% W.I. at Camden Hills and an increase to a 45% W.I. in the Canyon Express Pipeline. With King's Peak, ATP now has a working interest in six blocks in its Canyon Express Hub. The second acquisition was at ATP's Gomez Hub and included a 100% W.I. at Anduin and the potential to earn a 50% W.I. at Anduin West and a 25% W.I. at Gladden (following the successful completion of Anduin). ATP began drilling Anduin in January 2007. The drilling rig has encountered the productive reservoir and completion operations are underway. Anduin will be tied back to the ATP Innovator at Mississippi Canyon 711 and is scheduled to be placed on production in mid-2007. These recent acquisitions are not included in ATP's December 2006 reserve report. Management's current estimate of recoverable hydrocarbons is 47 Bcfe at Anduin and 13 Bcfe at Aconcagua.

ATP Oil & Gas is an international offshore oil and gas development and production company with operations in the Gulf of Mexico and the North Sea.

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