Title: ATP Oil
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ATP Oil Gas Corporation
Oil Gas Corporation
Global Executive Finance for Oil Gas 2002 May
13-14, 2002 Al Reese, Jr. Senior Vice President
Chief Financial Officer
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ATP Oil Gas Corporation
Oil Gas Corporation
Maintaining Balance Through A Focused
Exploration, Development And Divestiture
Strategy ATP Oil Gas Corporation A
Corporate Case Study
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ATP Oil Gas Corporation The EP Focus
Oil Gas Corporation
Frontier Exploration High risk and reward, 5
years to initial return Step-out
Exploration Medium-high risk and reward, 2-5
years to initial return Development Lower-medium
risk and reward, less than 2 years to initial
return Production Lowest risk and reward,
immediate initial return
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ATP Oil Gas Corporation Perceived
Risk/Reward
Oil Gas Corporation
Reward
0
Risk
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ATP Oil Gas Corporation Actual Risk/Reward
Oil Gas Corporation
Reward
0
Risk
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ATP Oil Gas Corporation The Issues
Oil Gas Corporation
- Corporate focus
- Assessing and acquiring properties for growth
- Continuous evaluation
- Monetizing value
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ATP Oil Gas Corporation
Oil Gas Corporation
ATP A case study in exploration and development
in a company that does no exploration
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Oil Gas Corporation
Taking a business approach to the oil and gas
business.
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ATP Oil Gas Corporation Company Overview
Oil Gas Corporation
- Founded in 1991
- A D P company
- Development and Production
- Offshore solution provider for exploration-oriente
d majors and independents
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ATP Oil Gas Corporation Company History
Oil Gas Corporation
ATP was founded in 1991 and completed an initial
public offering in February 2001
ATP awarded UKCS Blocks 42/25a and 43/21a by DTI
as an Out of Round License
ATP forms a second partnership and commences
development activities in the Gulf of Mexico
ATP acquires the third-party interests from its
two partnerships and enters into a new financing
arrangement
ATP acquires all properties of Statoil (US) on
the outer-Continental Shelf of the Gulf of Mexico
ATP opens the U.K. office commencing operations
in the Southern Gas Basin of the UK North Sea
The Company is incorporated on August 8th
2002
1995
1997
1999
1996
1993
1994
1991
1998
2000
2001
ATP forms its first limited partnership to
provide funding for operations
The Company completes its first sub-sea
development
ATP wins numerous awards for its outstanding
technological achievements and growth record
The Company completes its initial public offering
in February and acquires its first properties in
the UK North Sea
ATP becomes one of the first independent
development companies to utilize horizontal
drilling in offshore operations
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ATP Oil Gas Corporation Area of Operations
Oil Gas Corporation
Over 50 blocks in Gulf of Mexico 7 blocks in
North Sea
WC 101
WC 152
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ATP Oil Gas Corporation Our Exploration
Program is as a Solution Provider
Oil Gas Corporation
Win-win situation for both parties
- Sellers benefit
- Eliminates future capital expenditures
- Receive cash flow from non-core, non-strategic
assets - Keeps assets on the books through ORRI
- ATP benefit
- Eliminates exploration risk, cost and time
- Accelerates our growth in reserves, production
and cash flow - Creates outstanding project IRR
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ATP Oil Gas Corporation Strong Development
Track Record
Oil Gas Corporation
- Inception (1991) March 31, 2002
- PUDs taken to production 28
- PUDs in development planning 12
-
- Extensive Subsea Expertise
- Subsea Wells Operated 10
- Subsea Development Wells Planned 7
- Industry Leader in Long Reach Subsea
Tiebacks - - Ladybug 18 miles
-
-
-
100 of properties under development are
operated, allowing control of the timing and
amount of capital expenditure
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ATP Oil Gas Corporation Proved Reserves
Oil Gas Corporation
(Bcfe)
235
125
104
50
46
1997 1998 1999
2000 2001
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ATP Oil Gas Corporation Production
Oil/Natural Gas
Oil Gas Corporation
(Bcfe)
25.7
24.5
17.3
9.9
2.8
1997 1998 1999
2000 2001
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ATP Oil Gas Corporation Reserve Replacement
Oil Gas Corporation
Average Reserve Replacement 1997-2000
259
2001 527
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ATP Oil Gas Corporation Continuous Evaluation
and Monetization in a Changing Environment
Oil Gas Corporation
- Industry
- Oil gas prices
- Mergers and consolidation
- Corporate
- Management
- Focus
- Project
- Performance
- Adjacent opportunities
-
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ATP Oil Gas Corporation ATP Examples of
Evaluation and Monetization
Oil Gas Corporation
- High oil gas prices
- Acceleration wells
- High costs
- Postponed projects
- Opportunities away from focus
- Sale of exploration opportunities
-
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ATP Oil Gas Corporation Historical Operating
Performance
Oil Gas Corporation
( in millions)
94
EBITDA
REVENUES
84
58
55
43
27
20
15
8
5
1997 1998
1999 2000
2001 68 72 62
65 62
Margin
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ATP Oil Gas Corporation ATP Future
Oil Gas Corporation
Outer Continental Shelf Shallow Deepwater
GOM North Sea
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ATP Oil Gas Corporation Property Overview
Oil Gas Corporation
Gulf of Mexico Shelf Program
WC 101
WC 152
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ATP Oil Gas Corporation Garden Banks 409
(Ladybug)
Oil Gas Corporation
Gulf of Mexico Shallow Deepwater
WC 101
WC 152
- Ladybug
- ATP Operated
- 1 million barrels produced after 135 days
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ATP Oil Gas Corporation Southern Gas Basin
of North Sea
Oil Gas Corporation
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ATP Oil Gas Corporation Southern Gas Basin
of North Sea
Oil Gas Corporation
The Tors
Helvellyn
Venture
ATP Acquisition Blocks
Other Opportunities
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ATP Oil Gas Corporation Summary
Oil Gas Corporation
??Six straight years of increases of
Production Reserves Revenues EBITDA Cash Flow
??12 projects, 100 operated by ATP
??Continued focus on our core areas
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ATP Oil Gas Corporation Forward-looking
Statement
Oil Gas Corporation
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 Companys 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 Securities and 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.
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ATP Oil Gas Corporation
Oil Gas Corporation
NASDAQ ATPGATP Oil Gas Corporation4600 Post
Oak Place, Suite 200Houston, TX
77027-9726713-622-3311www.atpog.com