ATP Oil & Gas Corporation has reported first oil production from its deepwater Atwater Valley (AT 63) #4 well at the Telemark Hub in approximately 4000 feet of water. ATP initiated production on Sunday after completing a sequence of inspections, certifications, permits and approvals of facilities, structures, safety systems and field development plan systems from required government regulatory bodies including the Minerals Management Service (MMS), Environmental Protection Agency (EPA) and U.S. Coast Guard as well as classification of the unit by the American Bureau of Shipping (FOI Spar). ATP owns a 100% working interest and is the operator of the Telemark Hub.

"We have delivered on our goals and objectives by bringing the deepwater hub to first production utilizing our own floating drilling and production infrastructure, the ATP Titan," said T. Paul Bulmahn, ATP's Chairman and CEO. "Although ATP slowed development and capital expenditures during 2008-2009, this billion dollar deepwater project is now on production within 46 months from acquisition of the first Telemark Hub property. That is only 3.8 years from acquisition by ATP to first production in 4,000 feet of water. Offshore data shows that the average for deepwater developments utilizing tension leg platforms is 94.3 months or just under eight years and spar installations averaged 55.6 months or just under five years from discovery to first production. Through difficult financial times, ATP constructed, installed and is producing from a major piece of deepwater infrastructure within a very short development period."

"This will be a transforming year for ATP because of the expansive projected production increase," said Mr. Bulmahn. "This development successfully demonstrates our strengths of tenacity, determination and innovation in the deepwater Gulf of Mexico." The next Telemark Hub well scheduled to produce, Mississippi Canyon 941 ("MC 941") #3, was previously drilled to a total depth of 20,043 feet encountering 266 feet of net pay sands, approximately triple the 87 feet of net pay sands found in the original discovery well. The third well at MC 941 #4 and the fourth well at MC 942#2 were both drilled to 12,000 feet and are scheduled to be drilled to total depth and completed in 2010.

Tags: ATP Oil & Gas Corporation