Monday, 9 July 2012

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.

Disclaimer: The host of this blog shall not be held responsible or liable for, and indeed expressly disclaims any responsibility or liability for any losses, financial or otherwise, or damages of any nature whatsoever, that may result from or relate to the use of this blog. This disclaimer applies to all material that is posted or published anywhere on this blog.

No comments:

Post a Comment