In a few short months, a lot has happened at ATP Oil & Gas (NASDAQ: ATPG) on the operations front – both domestically, and internationally.

Domestically, the company completed its fourth well at Telemark hub in the deepwater Gulf of Mexico (100% WI) utilizing the ATP Titan which recorded IP  rates in excess of 7,000 BOEPD (85% oil). Most recent, ATPG reported completing a workover project at its Mississippi Canyon Block 941 A-2 well in the deepwater Gulf of Mexico with initial test flow rates of 4,000 BOEPD (90% oil). After tieback, ATPG estimates the A-2 well to produce at a rate of 4,000 to 5,000 BOEPD.

OAG360 notes that the company still has additional catalysts in the pipeline for 2012 that are expected to add to the company’s flowing production levels.  An additional workover at Mississippi Canyon on the A-1 well is scheduled for this year, and on the Green Canyon Block 300 at Clipper, the company expects first production from two wells in Q3’12 or early Q4’12 that previously tested at a combined 22.1 MBOEPD (16.4 MBoe/d net; 62% oil).

[sam_ad id=”32″ codes=”true”]

International Operations Making Headway:

Internationally, ATPG’s Shimshon well (40% WI) encountered approximately 62 feet of natural gas pay in the Bet Guvrin sands of the Levant Basin offshore Israel.  The company did not specify in the news release whether the 62 feet of pay was net or gross; however, ATPG mentioned more information would be released during Q3’12.

The Shimshon well is in a water depth of 3,622 feet and was drilled to a subsea depth of 14,445 feet. Isramco Negev, ATPG’s partner in Shimshon, hired Lockwood & Associates to perform an independent reservoir engineering resource evaluation of the project.  Lockwood’s evaluation used a 100% interest for the resource and assigned a 20% total geological and geophysical exploration probability of success.  Lockwood estimated Shimshon’s range of gross resource estimates between 1.5 Tcf to 3.4 Tcf (0.9 Tcf to 1.2 Tcf net to ATPG’s account), with a best resource estimate of 2.3 Tcf.

OAG360 notes that just north of ATP’s three offshore blocks in Israel are the Leviathan, Damar and Dalit blocks. Over the past two and a half years, Noble Energy (NYSE: NBL) discovered collectively more than 25 Tcf of natural gas in those three blocks.

ATP Oil & Gas will present at EnerCom’s The Oil & Gas Conference® 17 in Denver on August 12-16, 2012. Visit the Denver website for more information: www.enercominc.com.


Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable.  This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note.  This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary.  Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results.  EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services.  In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies.  As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note.  The company or companies covered in this note did not review the note prior to publication.

Legal Notice