ATP Oil and Gas - Workover Success at Telemark

Though it came a week or so later than promised, ATP Oil and Gas delivered today on its pledge to increase production at the Mississippi Canyon Block 941 A-2 well.  Initial flow rates were 4000 boe/day, with a very attractive 90% of it in the form of oil.  Better still, the well is expected to produce in a range of 4000-5000 boe/day. 

Based on past statements, the company will now complete a sleeve shift on the A-1 well over the next few days.  If and when that occurs, the ATP will likely have achieved added production at the top end of the targeted 4000-7000 boe/day range.

Given the problems that have plagued the company at Telemark, it remains to be seen whether production meets expectations.  However, long-suffering ATP shareholders have reason to be cautiously optimistic, given the recent success in Israel, as well as today’s announcement.

My original write-up on ATP Oil and Gas is here.

Disclosure: At the time this article was published, the author was long ATP Oil and Gas options.

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