ATP Oil and Gas (ATPG) to raise $100 million

ATP Oil and Gas Company (ticker: ATPG) announced the offering of $100 million worth of preferred stock.  The stock is non-convertible and the proceeds, according to the company will be used for their drilling program and general corporate purposes.

Our calculations show a shortfall of $68 million for the expected 2005 capital expenditure program.   Raising capital was an inevitability and the $100 million looks to be more than enough.  ATPG  is ramping up a very aggressive program, but they have produced in the past. 

On the 2Q2005 conference call (date to be determined) we hope management will give more color on what the general corporate purposes are.  Plus, what the extra $32 million in  proceeds will be used for. ATP does have a high debt to cap ratio.