ATP Oil & Gas (NASDAQ: ATPG) announced first oil production at its Mississippi Canyon Block 941 #4 well, the company’s third well brought on production at Telemark utilizing the ATP Titan. More importantly, the well came on at 7,000 BOEPD pushing ATP’s company-wide production to 31,000 BOEPD. The first two wells brought on at Telemark utilizing the Titan are the Atwater Valley #4, and MC 941 #3 (later renamed MC 941 A-1 by the BOEMRE).
Click here for the news release.
OAG360 Comments:
Production growth and revenue streams are the headliners in today’s announcement; however, OAG360 notes that today’s announcement also provides credibility to ATP’s ability to successfully operate in the deepwater Gulf of Mexico given recent headwinds.
Over the last several months, ATP has said the company will continue to drill ahead in the deepwater Gulf of Mexico and increase revenues and production as a result, while diversifying its operations overseas into Israel. This third well utilizing the ATP Titan (a billion dollar project) was drilled and cased prior to the Macondo well accident in the Gulf of Mexico at 12,000 feet. After the moratorium was lifted, and ATPG received its permit for this well on March 18, 2011, ATP said that first production from this well was expected during Q3’11. The company drilled an additional 5,600 feet and has brought the well on production meeting original production and time-line expectations.
What’s next? All the necessary permits to immediately begin drilling the company’s fourth well using the Titan at Telemark, MC 942 #2, have been received. Bear in mind that ATP’s second well at Telemark, the MC 941 #3 (MC 941 A-1) well came on early in 2010 at a rate in excess of 7,000 BOEPD, just like the MC 941 #4 well reported today. These incremental wells at the Telemark Hub have the potential to continue driving production growth and revenues for the company. Look for first production from the fourth well at Telemark utilizing the ATP Titan in late Q4’11.
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