ATP Oil & Gas cuts 2008-09 drilling budget

ATP Oil & Gas Corp., Houston, said it plans to cut more than $200 million from its capital expenditure budget for the rest of 2008 and 2009.

By OGJ editors
HOUSTON, Oct. 8 -- ATP Oil & Gas Corp., Houston, said it plans to cut more than $200 million from its capital expenditure budget for the rest of 2008 and 2009.

T. Paul Bulmahn, ATP chairman and chief executive, said the reduction is "prudent" due to the current economic and financial climate. Because ATP operates 100% of its current developments it can accelerate or defer projects in accordance with market conditions.

"We completed our most recent financing in June,…which provided us the strength and flexibility to withstand these volatile markets," said Bulmahn. ATP completed its development plans at High Island A-589 and South Marsh Island 190 and expects both projects to be in production this quarter. Its development plans for Morgus and Mirage in the Gulf of Mexico and Wenlock in the North Sea are progressing on schedule and should add new production in 2009.

"We expect to grow production and cash flow in 2009. The reduction to our capital expenditure budgets will impact production in the latter part of 2010 and beyond. Additional information about our revised developments will be provided as the details of our reduced capital program are finalized and implemented," Bulmahn said.

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