ATP Oil & Gas Corporation today announced that it has resumed recompletion operations at the Mississippi Canyon (MC) 941 A-2 well at the company’s Telemark Hub. The recompletion was suspended while the company recovered a piece of tubing that was stuck in the casing.
All of the tubing has now been removed from the casing. The MC 941 A-2 recompletion operations to perforate and frac-pack the B upper and lower sands are expected to conclude during second quarter 2012. MC 941 is located in the Mirage Field at the Telemark Hub location utilizing the ATP Titan floating drilling and production platform.
ATP operates the ATP Titan and Telemark Hub which is in approximately 4,000 feet of water with a 100% working interest and holds a 100% ownership in ATP Titan LLC which owns the ATP Titan and associated pipelines and infrastructure.
ATP Oil & Gas is an international offshore oil and gas development and production company with operations in the Gulf of Mexico, Mediterranean Sea and the North Sea. The company trades publicly as ATPG on the NASDAQ Global Select Market. For more information about ATP Oil & Gas Corporation.
ATP Oil & Gas Corporation today announced an increase in its estimated year-end 2011 proved and probable pre-tax PV-10 value to $7.3 billion based on SEC pricing, up 52% from $4.8 billion at year-end 2010.
ATP also provided an update on production for full-year 2011 which averaged an estimated 24.6 thousand barrels per day (MBoe/d), an increase of 17% over 2010.
Reserves – ATP estimates year-end 2011 proved reserves of 118.9 MMBoe compared to 126.1 MMBoe at year-end 2010. ATP estimates proved and probable reserves of 194.4 MMBoe at year-end 2011, compared to 211.3 MMBoe at year-end 2010. The changes were primarily a result of production of 9.0 MMBoe in 2011 and revisions to oil and gas reserves. On a Boe basis, ATP estimates that oil and natural gas liquids (NGLs) represent 66% of its year-end 2011 proved reserves and 65% of proved and probable reserves, compared to 60% and 59%, respectively, at year-end 2010.
ATP estimates a year-end 2011 SEC pre-tax PV-10 value of $4.2 billion for its proved reserves and $7.3 billion for its proved and probable reserves, compared to $2.6 billion and $4.8 billion, respectively, at year-end 2010. This increase is primarily a result of pricing, but other factors include timing and an increase in oil and NGL reserves.
Since independent reservoir engineers are finalizing estimates of ATP’s oil and natural gas reserves for year-end 2011, ATP will issue its final reserve amounts utilizing SEC pricing and reconciliation in conjunction with filing its Form 10-K, anticipated in March 2012.
Production – ATP’s production in the fourth quarter 2011 averaged 24.8 MBoe/d compared to 24.2 MBoe/d in the third quarter 2011. The fourth quarter average benefited from a 1.4 MBoe/d recognition of royalty relief related to 2010 production. Not including this benefit, average production in the fourth quarter was 23.4 MBoe/d, of which 70% was oil, compared to 69% in the third quarter 2011. ATP intends to conduct the previously announced sleeve shift at the Mississippi Canyon (MC) 941 A-1 well in the first quarter 2012 after production is established at the MC 942 #2 well. This sleeve shift had previously been scheduled in the fourth quarter of 2011. ATP estimates that opening the sleeve in the MC 941 A-1 well will increase production by 1.5 MBoe/d.
ATP anticipates an increase in production from the completion of the MC 942 #2 well during the first quarter 2012 and an increase later in the year with the installation of the pipeline for the two Clipper wells that were completed and tested in 2011. The installation of the Clipper pipeline is scheduled to begin in the third quarter 2012 with production expected in the late third quarter/early fourth quarter 2012.
ATP Oil & Gas is an international offshore oil and gas development and production company with operations in the Gulf of Mexico, Mediterranean Sea and the North Sea. The company trades publicly as ATPG on the NASDAQ Global Select Market.
Source: ATP Oil & Gas, February 24, 2012
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Hercules Offshore expects to end the year with more rigs in the Gulf of Mexico, as the top shallow-water driller in the region looks to cash in on higher day rates, a report said.
News wires 26 January 2012 05:42 GMT
Day rates could rise further as oil majors ramp up spending in the Gulf of Mexico after the government eased up restrictions on drilling permits that were imposed following the Macondo oil spill, chief executive John Rynd told Reuters in an interview.
“As we exit 2012, we may be running 19 or 20 rigs versus the current 18 (in the Gulf of Mexico),” said Rynd, who joined Hercules in 2005 after working with peers like Rowan Co and the drilling unit of Noble Corp.
A total of about 40 shallow-water rigs are active in the region and all of them are contracted, he added.
Houston-based Hercules has been commanding day rates of about $55,000 on average. The cost of renting a rig by the day has risen about $20,000 in the last one year.
“The rates are stable… we have a positive outlook for 2012,” Rynd said.
Activity in Gulf of Mexico is picking up after the 2010 oil spill brought drilling there to a standstill and higher oil prices are boosting exploration work in the region.
Rynd said Hercules is still in talks with Petroleos Mexicanos regarding its jack-up rigs. The Mexican state oil company did not renew contracts for two Hercules rigs following an accident in 2008.
The company, which is valued at about $618 million, caters to Chevron and Apache in the US Gulf and Oil and Natural Gas Corporation Limited (ONGC) in India.
Hercules shares were trading up 2% at $4.57 on Wednesday afternoon on the Nasdaq.
The stock has gained nearly two-thirds of its value in the October-December quarter, outperforming the broader S&P Oil & Gas Drilling Sub-Industry Index, which has grown 21% during the period.
Published: 26 January 2012 05:42 GMT | Last updated: 26 January 2012 05:45 GMT
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