ATP Sells Off UK North Sea Assets to EDF for $430MM
ATP and its wholly owned subsidiary ATP Oil & Gas (UK) Limited have entered into a sale and purchase agreement for GBP 265 million or approximately $430 million with EDF Production UK Limited ("EDF"), a subsidiary of EDF International of France, for certain of ATP's UK assets in the North Sea.
Effective July 1, 2008, the agreement transfers 80% of ATP's UK interest in its Tors (a 68% working interest) and Wenlock (an 80% working interest) properties to EDF. In addition to this transaction, EDF has a later option to acquire the remaining ATP interests. The sale has been approved by the respective boards and parents of ATP and EDF and is subject to approval by the UK regulatory authority. Closing and funding of the sale is expected before the end of 2008. ATP UK will remain as operator of both Tors and Wenlock.
T. Paul Bulmahn, Chairman and CEO of ATP, stated, "In June 2008 ATP launched its asset monetization program with Scotia Waterous. ATP will use these proceeds to reduce its debt, further its 2008 and 2009 development program and for other corporate purposes. This is testimony to the value created by the employees of ATP and in particular by the staff at ATP's UK office. We are pleased to have EDF as a partner in our North Sea production and development program."
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