NASDAQ s 17th Investor Program London. June 20-21, 2006 Albert L. Reese Jr., Chief Financial Officer DRIVEN TO SUCCEED

Transcription

1 NASDAQ s 17th Investor Program London June 20-21, 2006 Albert L. Reese Jr., Chief Financial Officer DRIVEN TO SUCCEED

2 Forward Looking Statement Certain statements included in this presentation are "forward-looking statements" under the Private Securities Litigation Reform Act of ATP cautions that assumptions, expectations, projections, intentions, or beliefs about future events may, and often do, vary from actual results and the differences can be material. Some of the key factors which could cause actual results to vary from those ATP expects include changes in natural gas and oil prices, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as our ability to access them, and uncertainties regarding environmental regulations or lit igation and other legal or regulatory developments affecting our business. The SEC has generally permitted oil and gas companies, in filings made with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We and our independent third party reservoir engineers use the terms "probable" and possible to describe volumes of reserves potentially recoverable through additional drilling or recovery techniques that the SEC's guidelines may prohibit us from including in filings with the SEC. These estimates are by their nature more speculative than estimates of proved reserves. All estimates of probable and possible reserves in this presentation have been prepared by our independent third party engineers. More information about the risks and uncertainties relating to ATP's forward-looking statements are found in our SEC filings..2

3 Company Overview > Founded in 1991 as a development and production company > Low-risk, geographically focused operations North Sea and Gulf of Mexico > March 31, 2006:» Listed (ATPG) on NASDAQ» 29.4 MM Shares outstanding» Employees own 32% of the Company Oil & Gas Investor 2005 Excellence Award for Best IR Program ATP ATP follows the the same same strategy today today that that the the Company was was founded on on in in

4 Company Overview (Cont d) > Highly successful development track record» 42 of 43 (or 98%) properties placed on production > Large inventory of proven reserves to develop» 399 Bcfe of PUD reserves to develop at 12/31/05» Inventory of 30+ properties for future development in the Gulf of Mexico plus North Sea developments» 100% of developments operated by ATP North Sea Gulf of Mexico 1,367% Reserve Replacement Ratio Ratio in in

5 2005 Proved Reserves Proved Reserves Prepared by independent reservoir engineers December 31, 2005 Proved (Bcfe) Developed Undeveloped Total Proved Reserves North Sea Gulf of Mexico Pre-tax PV-10% Pre-tax PV-10 ($'s in billions) Developed $ 0.9 Undeveloped $ 1.8 Total $ 2.7 $1.3 North Sea $1.4 Gulf of Mexico Proved PV-10 value value of of $2.7 $2.7 billion.5

6 2005 Proved + Probable Reserves Reserves at 12/31/ Bcfe proved / 758 Bcfe proved and probable >North Sea 295 Bcfe proved (56%) / 424 Bcfe proved and probable (56%) >Gulf of Mexico 232 Bcfe (44%) / 334 Bcfe proved and probable (44%)»Deepwater 157 Bcfe proved»shelf 75 Bcfe proved Proved and and Probable PV-10 value value of of $4.2 $4.2 billion.6

7 Reserve Profile Proved Reserves By Region Proved Reserves By Commodity Gulf of Mexico 44% Oil 33% N. Sea Gas 36% Nort h Sea 56% GOM Gas 31% Proved and Probable Reserves By Region Proved and Probable Reserves By Commodity Gulf of Mexico 44% Oil 32% N. Sea Gas 38% Nort h Sea 56% GOM Gas 30%.7

8 Summary of Properties > Proved reserves of 527 Bcfe > Proved and probable reserves of 758 Bcfe > Proved, probable and possible reserves of 1.1 Tcfe > In addition to properties in our reserve report prepared by independent reservoir engineers, ATP is moving forward to develop 14 other properties with logged hydrocarbons Top 5 Properties Cheviot MC 711 Tors King's Peak Wenlock North Sea Gulf of Mexico North Sea Gulf of Mexico North Sea (Bcfe) Proved Probable Total Note: Based on Proved Reserves at December 31, ) Defined as properties that have logged hydrocarbons and are planned developments..8

9 Step Change in Reserves Proved Reserves Pre-tax PV-10 (Bcfe) 527 ($'s millions) $2, $776 $733 12/31/03 12/31/04 12/31/05 Proved Developed Reserves 12/31/03 12/31/04 12/31/05 Reserves % North Sea / % GOM (Bcfe) % 66% 44% 33% 34% 56% 12/31/03 12/31/04 12/31/05 12/31/03 12/31/04 12/31/05 NS GOM.9

10 Step Change in Developments > Material Project has taken on a whole new meaning at ATP as measured by CAPEX and production impact > Ladybug (GB 409) and Helvellyn enabled ATP to develop larger projects at Mississippi Canyon 711 and Tors > Cheviot will similarly benefit from MC 711 and Tors Material Projects CAPEX $500+ MM $175+ MM $200+ MM $3 MM $30 MM $49 MM WC 432 ('94-'95) Ladybug ('00-'01) Helvellyn ('02-'03) Tors ('05-'06) MC 711 ('05-'06) Cheviot ('07-'08).10

11 Step Change in Production > First quarter MMcfe/d; April 155 MMcfe/d; May 8, 2006 spot rate 188 MMcfe/d > Mississippi Canyon 711, Tors, and L-06d key drivers of production growth > Expect record production, revenue and cash flow during the second quarter 2006 Production Ramp (MMcfe/d) Estimate.11

12 Step Change in Price Realization Hedged Hedged contract contract value value of of $336 $336 million million for for , 2007, representing representing Bcfe Bcfe (1) (1) of of production production Average Annual Hedge Price ($/MMbtue) $9.85 $11.50 $5.21 $ (13.0 Bcfe) (12.6 Bcfe) (20.6 Bcfe) (11.8 Bcfe) (1) Includes puts, fixed forward and swap contracts currently in effect..12

13 Step Change in Financial Strength > Revenue and EBITDAX are expected to increase» Market estimates: Revenue ( E) 214% increase EBITDAX ( E) 206% increase > ATP is not aware of another E&P Company with a Market Capitalization of more than $1 billion that expects Production, Revenue and EBITDAX to more than triple within a year Revenue EBITDAX ($ millions) $689 ($ millions) $595 $463 $365 $88 $80 $70 $116 $147 $63 $54 $41 $79 $ E 2007E E 2007E (1) Source: I/B/E/S Estimates June 15, Actual Analysts estimates (1 ).13

14 Attractive Valuation Share Price vs. NAV Transaction Value/ Mcfe 80% Upside $ % Upside $6.94 $3.15 $38.50 Share Price NAV EV / Mcfe GOM Me an Valuation Net Asset Value M&A Comparable Analysis Pre-tax PV-10% $ 2,684.3 Market Cap (1) $ 1,131.9 Working Capital (2) $ 47.0 Long-term Debt $ Long-term Debt $ Preferred (2) $ Preferred (2) $ Cash (2) $ Net Asset Value (N AV) $ 2,052.6 Enterprise Value $ 1,660.2 Common Shares 29.7 Proved Reserves Current Share Price $ Enterprise Value per Mcfe $ 3.15 NAV per Common Share $ GOM Acquisitions (3) ($/Mcfe) $ 6.94 % Upside 80% % Upside 121% (1) Market Cap based on $38.50 share price. (2) As of March 31, (3) See Gulf of Mexico acquisition table in the appendix..14

15 Gulf of Mexico Future Inventory ATP ATP has has more more properties in in its its Gulf Gulf of of Mexico project inventory than than it it has has on on production.15

16 North Sea Future Inventory ATP s ATP s North North Sea Sea Inventory of of predominately larger projects exceeds our our proved reserves in in the the Gulf Gulf of of Mexico.16

17 3-Year Inventory of Major Development Projects MC 711 (Phase 1) MC 711 (Phase 2) King's Peak Lady Bug Morgus Oasis Mirage GC 37 SMI 189/190 ST 77 SMI 166 EI 30/71 WC 492 WC 462/480 HI A-589 HI 74 SS 351 WC 663 Shelf (Other) 2007 Shelf (Other) 2008 Tors-Kilm ar Tors-Garrow Wenlock Cheviot GOM Deepwater GOM Shelf North Sea.17

18 Properties Developments and Acquisitions.18

19 MC 711-North (Gomez) Gulf of Mexico Deepwater Property Synopsis > 1 st Phase completed 1Q06» Daily rate MMcfe» Projected rate 100 MMcfe by 3Q06 > 2 nd Phase development summer 2006 > 3,000 Water depth > Acquired 2003 > 100% WI Development Summary > Facilities: Already in place MC 711 floating platform on location > Well Operations: Reenter and complete two temporarily abandoned wells in northern portion of block. Possibly drill up to two additional wells. Program to start Summer 2006 > Rig lined up ATP ATP has has only only recorded proved reserves in in three three of of the the eight eight identified hydrocarbon bearing sands sands at at MC MC

20 Property Synopsis King s Peak Gulf of Mexico Deepwater > Producing property acquired September 2005 > Current net production ~20 MMcf/d > Initial PUD development ( ) > 6,500 Water Depth > 55% WI > Pipeline: Tied into Canyon Express pipeline system in which ATP is an owner Development Summary > Well Operations: 2 subsea wells targeting two separate proved undeveloped (PUD) reservoirs in the Upper Miocene King s Peak Peak is is essentially the the same same size size as as MC MC based on on gross gross proved and and probable reserves.20

21 Green Canyon 37 Gulf of Mexico Deepwater Property Synopsis > ATP was awarded GC 37 pursuant to the March 2006 OCS Lease Sale 198 > 1,800 water depth > Exploration well drilled in 1996 by British Borneo > One logged oil zone and one logged gas zone > Potential upside at shallower stratigraphic level > 100% WI and operator ATP s acquisition strategy includes lease sale opportunities with logged hydrocarbons..21

22 Mirage, Morgus and Oasis Gulf of Mexico Deepwater Property Synopsis > 3,800-4,200 water depth > Well drilled at Mirage (MC 941) in 1998 encountered ~87 net feet of hydrocarbons in 2 sands > Well drilled at Morgus (MC 942) in 1998 encountered ~55 net feet of hydrocarbons in 1 sand > Reviewing options at Oasis (MC 943) > 100% WI in Morgus, 75% WI in Mirage and 75% WI Oasis, and operator of all 3 blocks > Expect to commence initial development operations at Mirage in 2006 with first production targeted at Mirage and Morgus for MC 941 Log.22

23 Property Synopsis > Initial development (2006) > Initial production late 2006 > 350 Water Depth > 2 wells previously drilled > Acquired 2003 > 100% WI West Cameron 663 Gulf of Mexico Shelf GB 142 Platform Development Summary > Facilities: Reuse jacket and deck from High Island 354 > Pipeline: Install 4-mile pipeline to Garden Banks 142 (Matia) > Well Operations: 2-well program scheduled for 2006 West Cameron 663 is expected to add 15 to 20 MMcfe/d net to ATP.23

24 Ship Shoal 351 Gulf of Mexico Shelf Property Synopsis > Initial development ( ) > Initial production 2007 > 350 Water Depth > 5 wells previously drilled > Acquired 2004 > 50% WI Development Summary > Facilities: Construct a new platform and deck for installation Summer 2006 > Pipeline: Install 5-mile pipeline to Ship Shoal 358 > Well Operations: 2-4 well program to start Summer 2006 Ship Ship Shoal Shoal is is expected to to add add to to MMcfe/d net net to to ATP ATP SS 358 Platform.24

25 Tors North Sea Property Synopsis > 1 st Phase underway. Initial production at Kilmar April 2006 > 2 nd Phase development (2006) > 2 nd Phase production Winter > 170 water depth > Three wells previously drilled > Two wells tested at combined 36MMcf/d > Acquired 2001 > 85% WI Development Summary > Facilities: Installed Garrow deck June 2006 > Pipeline: 22-kilometer pipeline to Kilmar; already installed in 2005 > Well Operations: 1 or 2-well program > ENSCO 70 rig on location When When fully fully developed, Tors Tors should produce at at to to MMcf/d net net.25

26 Wenlock (formerly Venture) North Sea Property Synopsis > Initial development ( ) > Initial production Winter 2007 > 75 Water Depth > 2 wells previously drilled > Tested at 74 MMcfe/d > Acquired 2001 > 100% WI Wenlock Development Summary > Facilities: Construct a new platform and deck for installation late 2006 > Pipeline: Reviewing two possible routes > Well Operations: 1-3 well program to start late 2006 Wenlock is is expected to to add add 75+MMcf/d net net to to ATP ATP.26

27 Property Synopsis > Development Cheviot North Sea > Initial production projected 2008 > 500 Water Depth > Produced 16 million barrels from with less than 8% recovered of original oil in place > Acquired 2003 > 100% WI Development Summary > Facilities: 20-slot platform > Gas (pipeline); Oil (tankered out) > Well Operations: well drilling program to start in 2008 Cheviot is is expected to to add add to to MMcfe/d net net to to ATP ATP.27

28 Investment Highlights > Consistent strategy applied offshore North Sea and Gulf of Mexico > Financial strength to execute development inventory > Diversified and balanced asset base» North Sea and Gulf of Mexico» Deepwater and Shelf» Oil and gas > Material step changes» Production (Gomez and Tors)» Reserves (Cheviot and King s Peak) > 3-Year plan to develop existing inventory» North Sea (Cheviot, Tors, and Wenlock)» Gulf of Mexico (30+ locations).28

29 ATP Oil & Gas Corporation - NASDAQ: ATPG ATP Oil & Gas Corporation 4600 Post Oak Place, Suite 200 Houston, TX ATP Oil & Gas (UK) Limited Victoria House, London Square, Cross Lanes Guildford, Surrey GU1 1UJ United Kingdom 44 (0) ATP Oil & Gas (Netherlands) B.V. Water-Staete Gebouw Dokweg 31 (B) 1976 CA IJmuiden The Netherlands 31 (0)

30 Appendix.30

31 Hedges ( ) Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY Gulf of Mexico: Fixed Forwards and Swaps Natural Gas Volumes (MMMBtu) 2,160 1,363 1,376 1,073 5,972 1, ,350 Price ($/MMBtu) $ 8.08 $ 8.50 $ 8.50 $ 9.83 $ 8.59 $ $ - $ - $ - $ Crude Oil Volumes (MBbls) Price ($/Bbl) $ $ $ $ $ $ $ $ $ $ Equivalents Volumes (MMMBtue) 2,808 1,835 3,142 2,839 10,625 2,754 1,420 1,435 1,435 7,044 Price ($/MMBtue) $ 8.03 $ 8.53 $ 9.83 $ $ 9.30 $ $ $ $ $ Puts Crude Oil Volumes (MBbls) , Floor Price ($/Bbl) $57.50 $57.50 $57.50 $57.50 $ $ - $ - $ - $ North Sea: Swaps Natural Gas Volumes (MMMBtu) 399 1,256 1,655 1,800 1,800 Price ($/MMBtu) (1) $ $ $ $ $ The above are hedges, derivatives and fixed price contracts that are currently in effect or have settled prior to such date. Additional hedges, derivatives and fixed price contracts, if any, will be announced during the year..31

32 Gulf of Mexico M&A Transactions Gulf of Mexico Acquisitions: 1/1/05 - Present (>$1 billion) ($ in millions, except where noted) TV / Trans. Res. Res. Date Buyer Seller Value (Bcfe) ($/Mcfe) 2/23/06 Marubeni Pioneer $1, $ /23/06 W&T Offshore Kerr-McGee 1, /23/06 CAL Dive Remington 1, /19/05 Norsk Hydro Spinnaker 2, /28/05 Statoil EnCana 2, Mean $6.94 Median 6.84 Source: JS Herold, Inc. as of 3/7/06..32