ATP Oil & Gas Corporation has sold a $25 million dollar denominated limited term overriding royalty interest in its Gomez Hub.
Similar to previous overriding royalty interests sold by ATP, the purchaser will receive a designated portion of the revenues produced at the Gomez Hub in the Gulf of Mexico until obtaining the amount of their investment plus a designated return. At the conclusion of the override all of the remaining interest will revert to ATP.
ATP also announced an update on its development activities at the Telemark Hub. As of February 2, 2012, ATP has completed the drilling of the Mississippi Canyon ('MC') 942 #2 well to a measured depth of 21,400 feet. As previously noted, three productive sands have been logged with at total of 239 feet of pay. ATP has set 7-5/8 inch casing across the B and C Sands and a 5-1/2 inch liner through the S Sand. The S Sand, at a depth of 21,010 to 21,090 feet, has been perforated and completed.
After completion of the next regularly scheduled BOP test, ATP will move to the completion of the C Sand which will be perforated at a depth of 17,560 to 17,730 feet. As soon as the C Sand is completed, ATP will begin completing the B Sand which will be perforated at a depth of 17,410 to 17,480 feet. An additional BOP test will be required before the completion of the B Sand.
ATP estimates first production immediately upon completing these activities scheduled during first quarter 2012. Plans are to begin production in the S Sand. ATP intends to comingle the B and C Sands with the S Sand when the pressure equalizes between the three sands.
ATP's next regularly scheduled conference presentation is at the J.P. Morgan High Yield Conference being held February 27 - 28 in Miami where additional updates on its Telemark Hub as well as a preliminary estimate of its independent third party year-end 2011 proved and probable reserves will be provided. A previously scheduled conference appearance with Credit Suisse the week of February 6 unfortunately had to be cancelled. Any previously scheduled one-on-ones may be rearranged by contacting ATP's investor relations office. The cancellation was due to scheduling conflicts including funeral services for a family member of an ATP executive.