Today, ATP Oil & Gas, the Houston, Texas-headquartered developer/operator of a rich portfolio of gas and oil interests in the Gulf of Mexico, Mediterranean, and North Sea, announced resumption of production at their ATP Titan platform (servicing the Telemark Hub and ancillary pipelines/infrastructure, all of which the company has a 100% working interest in via sole ownership of subsidiary ATP Titan, LLC).
ATP has earned a reputation as an innovator in the oil derrick space, with an exceptionally strong track record since inception in 1991 for not only pioneering new, safer, more efficient technologies, but also being able to boast an incredible 98% development success record.
Rather than exploration drilling at sea, ATP has focused more on acquiring low risk assets that have seen previous development and accelerating the project through better solutions/technology. Just look at their approach in the Gulf of Mexico at the ATP Titan deepwater floating drilling and production facility, from the incorporation of a dual blowout prevention system that allows for redundant safety protocols (ATP was the first operator in the Gulf to use a Subsea Isolation Device, or SID, in addition to the typical surface-blowout-preventer, or BOP), to the use of a first-of-its-kind hull configuration for Telemark (an extremely versatile floating triple-column spar structure). ATP doesn't just think ahead, they execute ahead of the entire game.
Production at Titan is expected to ramp up in the next few days and is currently proceeding apace. This is good news for personnel at the ATP Titan, which was shut-in (May 14) pending the tie-in of a new offsetting platform via the Mars pipeline operator, something which has since been completed. Important forward momentum considering today's other data point from the company, namely that the ongoing efforts to perforate into the lower B sand at the Mississippi Canyon (NYSE:MC) 941 A-2 well were complete.
ATP anticipates wrapping work on the Mississippi Canyon 941 A-2 by the end of the month and is currently setting up to frac-pac the well. Also projecting that the well will be immediately accretive to overall production, ATP is quite pleased with this key addition to the Telemark Hub and it really shows the extensibility of the platform/network design.
Of course, none of this is surprising from ATP, winner of Oil & Gas Investor's Best Field Rejuvenation 2007 Award for their ATP Innovator semisubmersible floating production platform (uses a novel12-point taut-leg polyester/chain apparatus fixed to the seabed with suction embedded plate anchors), which the company upgraded to even be able to handle third-party production. When ATP lacks localized infrastructural capacity for doing this complex offshore production, the company aggressively assembles existing capacity to handle the job, or completely engineers a solution that wouldn't even occur to other companies as being possible. It's this kind of innovative spirit that has made the Telemark Hub project such a success.
Telemark will be back to up to speed in short order and beyond with the production from MC 941 A-2. This will give a good boost to ATP, which is currently in fabrication on a new Octabuoy, dry-tree completion unit for their U.K. North Sea Cheviot field (will feature full production facilities, complete drilling and workover rig, storage, as well as fabrication/installation possibilities) that should be more efficient and cost effective than other dry-tree units.
ATPG appears to be a good value right now and the company is clearly undaunted, despite poor bond performance and the resignation of new CEO, Matt McCarroll after only a week on the job, helping to drag the share price down.
For more information on today's report, or to learn more about ATP Oil & Gas Corp., please visit the company's website at: www.ATPog.com
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