Gulf of Mexico: ATP sells deep interests at Telemark

ATP Oil & Gas Corp., Houston, has sold its interest in the deep rights below 23,499 ft true vertical depth subsea in one of its Telemark Hub properties in the US Gulf of Mexico to a third party for an undisclosed sum, resulting in a gain estimated at $26 million.

ATP retained a 1% overriding royalty interest. The company said it is “eager to encourage exploration into deeper horizons” near the ATP Titan, which has a design capacity of 25,000 b/d of oil and 50 MMcfd of gas and can accommodate additional production.

ATP operates the deepwater Telemark Hub with a 100% working interest and owns 100% of the subsidiary that owns the ATP Titan and associated pipelines and infrastructure that handle output from the Atwater Valley and Mississippi Canyon areas.