ATP Oil & Gas Begins Drilling at Matia/Cabrito Field

ATP Oil & Gas has commenced drilling of the first of two wells on Garden Banks blocks 142/186/187 (Matia/Cabrito Field) in the Gulf of Mexico. The Matia/Cabrito development, located in approximately 550 feet of water, is the Company's largest Gulf of Mexico development since developing Garden Banks 409 (Ladybug) in 2001, a property with current gross cumulative production of 5.7 million Boe, which exceeds original third party reserve estimates.

Since ATP is the operator and controls the timing of this development, it is expect that the well will be completed and begin producing within 60 days. The second well is expected to commence following the completion of the first well and should be completed and on production in the first half 2004. ATP has an 80% working interest at Matia/Cabrito.