atp oil & gas corporation commercializing pud reserves may 16, 2002 t. paul bulmahn chairman...

ATP Oil & Gas Corporation

Commercializing PUD Reserves

May 16, 2002

T. Paul Bulmahn

Chairman & President

ATPOil & Gas

Corporation


What are PUD Reserves?

Proven Undeveloped Reserves (PUDs)

Oil and gas reserves:

1. that have been proven with geological and engineering data,

2. that can economically be produced using existing pricing and operating conditions, and

3. that require significant capital to move the reserves to a producing state.

ATPOil & Gas

Corporation


Proved Undeveloped PlayersATPOil & Gas

Corporation

Gulf of Mexico UK North Sea

Governing body MMS DTI

Holders of PUD projects

Majors & Independents

Primarily Majors

Owners of infrastructure

Pipeline companies

Majors

Developers of projects

Primarily Independents

Majors & Independents

Financing sources Banks, mezzanine lenders

Banks, mezzanine lenders


Current IssuesOwners and Developers (Majors and

Independents):

• Small fallow projects will probably not be developed by Majors

• Technology is available to the independents to develop fallow fields

• Independents need reasonable tariffs for pipelines and processing production from smaller fields

• Independents need funding to develop properties

ATPOil & Gas

Corporation


PUD Reserves

Low risk, because “proved”

ATP has developed and placed on

production 29 out of 30 offshore

PUDs

ATPOil & Gas

Corporation


Hurdles to Financing PUDs

•Proven yet undeveloped reserves

•Ability of developer to bring the PUD

to production

•Ability of developer to produce

economically

•Commodity pricing fluctuations

ATPOil & Gas

Corporation


Current IssuesBanks and Financing Entities:

• Financing opportunities are estimated in the billions of pounds

• Creation of a new business segment /area of marketing for banks and financing sources

What will allow banks to fund independents when the primary

collateral is PUDs?

ATPOil & Gas

Corporation


Areas of Consideration in Advancing Funds

Criteria for Developers:

•History of converting PUDs to PDPs

•Base of proved reserves

•Technical expertise

•Management of risk

•Resilience to industry cycles

•Operational safety record

•Concentration

ATPOil & Gas

Corporation


History of Converting PUDs to PDPs

Strong Development Track Record

Inception (1991) – March 31, 2002 PUDs taken to production 29 PUDs in development planning 12

Gulf of Mexico 7North Sea 5

100% of properties under development are operated, allowing control of the timing and amount of capital expenditure

Extensive Subsea Expertise Subsea Wells Operated 10 Subsea Development Wells Planned 7 Industry Leader in Long Reach Subsea Tiebacks

- Most recent development is an 18 mile tieback to a platform in 900 feet of water

ATPOil & Gas

Corporation


Proved Reserves

December 31, 2001

ATPOil & Gas

Corporation

North Sea 34%

Gulf of Mexico

66%


Proved ReservesATPOil & Gas

Corporation

67%

33%

100%

Gulf of Mexico North Sea

December 31, 2001

Proved Developed

Proved Undeveloped


North Sea Southern Gas Basin

ATPOil & Gas

Corporation

Helvellyn

Out of Round Awarded February, 2002


Reserve Replacement

Average Reserve Replacement:

1997-2000 259%

2001527%

ATPOil & Gas

Corporation


Staff ExpertiseATPOil & Gas

Corporation

Technical Staff – Average Offshore

Industry Tenure

22 Years

Employee Academic Backgrounds

One College Degree

Additional Graduate Degrees and Professional Certifications

85%

60%


Quality of Outside Reserve EngineerATPOil & Gas

Corporation

Gulf of Mexico

ATP Oil & Gas employs Ryder Scott

North Sea

ATP Oil & Gas (UK) Ltd. employs Troy Ikoda


Estimation of ReservesATPOil & Gas

Corporation

Deterministic Method – SEC

Article 210.4-10(a) of Regulations S-X (17 CFR 210) of United States Securities and Exchange Commission

Probabilistic Method - SPE

Joint Reserve Definitions of the Society of Petroleum Engineers and the World Petroleum Congress


Management of RiskATPOil & Gas

Corporation

•Business risk

•Niche focus since 1991

•No exploration

•PUD properties

•Incorporation of industry technology

•Operational risk•ATP operates all 12 undeveloped projects

•ATP operates 22 of 28 producing properties in the Gulf of Mexico


Management of Risk - Commodity Price Fluctuations

ATPOil & Gas

Corporation

ATP Philosophy – Hedge to protect the downside and to provide assured economic returns

Percentage of oil & gas production hedged:

2002 59%

2003 39%


Resilience to Industry Cycles -- Historical Operating Performance

62%

65%

62%

72%68%

EBITDA REVENUES

ATPOil & Gas

Corporation

Consistent EBITDA to Revenue Ratio


Operational Safety RecordATPOil & Gas

Corporation

ATP was nominated for the 2002 National Safety Award of Excellence

by the MMS as one of the 5 finalists of 42 companies that currently operate

in the Gulf of Mexico


ConcentrationATPOil & Gas

Corporation

Lending attitudes need to recognize opportunity


ATP ApproachATPOil & Gas

Corporation

•Focused strategy on PUDs

•Every project is vigorously analyzed by our staff for development, operations and economics


ATP ApproachATPOil & Gas

Corporation

•Six straight years of growth in:

-Reserves

-Production

-Revenue

-EBITDA

-Cash Flow


Requirements for Success

• DTI continued encouragement of Major and Independents to work together to:

• Divest fallow PUD properties• Provide less costly access to

infrastructure of pipelines and platforms

• Qualified Independents bringing innovation for low cost PUD development

ATPOil & Gas

Corporation


Requirements for Success

• Sufficient capital for development of PUDs

• Change in the attitude of established lenders

• New lenders with new products

ATPOil & Gas

Corporation


Forward-looking Statement

This presentation contains projections and other forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These projections and statements reflect the Company’s current view with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that these projections will be achieved, and actual results could differ materially from those projected as result of certain factors. A discussion of these factors is included in the Company documents filed with the Securitiesand Exchange Commission.

This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, or the solicitation of a proxy or an attempt to influence any voting of securities, by any person.

ATPOil & Gas

Corporation


NASDAQ: ATPGATP Oil & Gas Corporation

4600 Post Oak Place, Suite 200Houston, TX 77027-9726

713-622-3311www.atpog.com

ATPOil & Gas

Corporation

atp oil & gas corporation commercializing pud reserves may 16, 2002 t. paul bulmahn chairman...

Documents

gas reserves

proved atp

undeveloped reserves

undeveloped slide

financing puds

fallow fields independents

subsea development wells

smaller fields independents