ATP Moves Forward with Telemark Hub, Expects Titan Sail Out Mid-2009

In the deepwater Gulf of Mexico, development activities continue at ATP's Telemark Hub. Construction of the ATP Titan -- a floating drilling and production platform and ATP's first MinDOC -- is nearly complete and it is scheduled for sail-out and mooring in mid-2009. The ATP Titan has a design capacity of 25 MBbls of oil per day, 60 MMcf of gas per day and a useful life of 50 years.

In the northern part of the Telemark Hub, the initial drilling of three wells was performed in the third quarter 2008 at Mirage (Mississippi Canyon Block 941) and Morgus (Mississippi Canyon Block 942). All three wells were drilled to a depth of approximately 5,900' and 22" casing was set. The ATP Titan will be moored initially at Mirage/Morgus to complete the drilling of the three wells to the targeted total vertical depths of 14,600' to 17,250' and to serve as the production platform for the life of the reserves.

In the southern part of the Telemark Hub, ATP recently revised its drilling and production program at Atwater Valley Block 63 ("AT 63") to include a subsea well at AT 63 for completion and production through the ATP Titan. This revision will result in an increase in production rates through the ATP Titan in 2010 and 2011 and an immediate cost savings, as MinDOC II, originally scheduled for installation at AT 63, is postponed and will be utilized at another ATP location in the future. After the reserves at Mirage and Morgus are produced, the ATP Titan is scheduled to be moved to AT 63 where it will recover the remaining reserves.

First production at ATP's Telemark Hub is expected in late 2009 or early 2010. ATP has a 100% WI and is the operator of the Telemark Hub.

Telemark Hub

In 2007, due to lack of nearby accessible infrastructure near ATP's Telemark Hub project, ATP decided to utilize a self contained floating drilling and production triple-column spar structure. This is the first hull configuration of this kind. This versatile deepwater operating concept, comprised of three columns linked by pontoons, offers higher variable load capacity and enhanced stability over traditional single-hulled spars.