ATPG: WTF is going on?

[admin]

Art, this is actually a reasonable find, we're getting used to 1000-2000ft of net pay (or even 2275ft, as in Antelope1), but those are not given to everyone..

[admin]

ATP's Bond Shows That The Israeli Discovery Has Little Impact On The Company
July 3, 2012 | 11 comments | about: ATPG

ATP Oil and Gas (ATPG) announced on Monday that the company struck natural gas off the coast of Israel. The company has a 40% working interest in the project. The shares jumped more than 25% on the news of the discovery. It seemed that things were beginning to look up for the company, which was on the brink of financial catastrophe.

http://seekingalpha.com/article/700571-a...he-company

[ValueSleuth]

Clearly, there's a problem with ATP -- either a rumor or reality.

As I've previously stated, it is a question of whether they survive or not. Before, I'd believed they would. Now, who knows?

IF, they survive in their present form -- and that's a BIG IF at this point -- the Preferred Stock is the better buy, by far.

However, anyone buying now better have a strong stomach for extreme risk.

VS

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Here's a curious and provocative comment by saratogahawk in a response on the following SA thread involving SDRL: http://seekingalpha.com/article/756541-seadrill-s-latest-contract-promises-revenue-growth-and-improved-earnings?source=email_rt_article_title&ifp=0

"However, RIG has taken a 17 well drilling program with ATPG in the North Sea starting in December so I am confident that ATPG must have found a partner for the North Sea work. No way RIG takes a major contract with ATPG unless they think it will actually happen."

If the information is factual, ATP's current situation would be RADICALLY improved.

Connect the dots.

VS

[admin]

Interesting find that, Value.

[ValueSleuth]

The relative values of ATPG and ATPGP (8% Perpetual Convertible Preferred) jump around quite a bit.  As of today's close the conversion premium of the Preferred is about 61%, so it would appear to be of a lesser value for the moment.  At times over the last few days, the conversion premium has been negative, when the Preferreds really tanked.

FWIW, today I bought some common stock at $1.49, looking at it like a perpetual call, which will either soar or be worthless.

Connect the dots.

VS

[Justin94360]

VS/Petro/Art/STP, used to dabble in ATPG a couple of years ago when it used to move betweeen $15-$20ish regularly. Have just bought a small chunk at $1.30 also seeing it as a shot to nothing. Any info much appreciated, value all of your posts over on IOC.
Thanks

[Justin94360]

BTW Sure you have seen it but they have started a private members message group over there as well (not a patch on SHU obviously) but stops all the bull**** posts.
http://finance.groups.yahoo.com/group/Su...e/messages

[Gator]

At this price ($1.47) ATPG will either be a huge winner, or a tax-loss to offset the IOC gains. Thank for this site as I so overweighted IOC and not ATPG (or even HUSA).

[admin]

Actually I vaguely remember writing a SA article suggesting a short of HUSA at $20 or so, Gator
Here it is:
http://seekingalpha.com/article/197094-h...perfection

[admin]

ATP blames Gulf of Mexico moratorium for Chapter 11 bankruptcy

HOUSTON -- ATP Oil & Gas has filed a voluntary petition for reorganization under Chapter 11 to undertake a comprehensive financial restructuring.

In a news release, ATP said, "the primary reason for the reorganization began with the Macondo well blowout in April 2010 and the imposition beginning in May 2010 of the moratoria on drilling and related activities in the Gulf of Mexico. These events prevented ATP from bringing to production in 2010 and in early 2011 six development wells that would have added significant production to ATP, according to the release. As of the date of the banruptcy filing, three of these wells are yet to be drilled."

"Had ATP been allowed to drill and complete these wells, ATP believes it would have provided a material production change in 2010 continuing to today," continued ATP's statement. "This projected increase in production should have substantially increased cash flows, shareholder value and allowed the company the ability to withstand normal operational issues experienced by owners of oil and gas properties in the Gulf of Mexico. In addition, these incremental cash flows would have mitigated or prevented the need to enter into many of the financings ATP has closed since the imposition of the moratoria—financings that require relatively high rates of return and monthly payments."

ATP has obtained a commitment for $617.6 million of debtor-in-possession (DIP) financing from members of its existing senior lender group, which will provide $250 million of additional funds and refinance into the DIP facility the amounts owed to those existing first lien lenders that participate in providing additional funds.

ATP Oil & Gas is an international offshore oil and gas development and production company focused in the Gulf of Mexico, Mediterranean Sea and the North Sea.

08/19/2012