ATP Oil & Gas secures approval to sell deepwater well lease interests

By Caroline Salls

Pittsburgh, Jan. 31 - ATP Oil & Gas Corp. received court approval to sell its interests in two deepwater well leases to Union Oil Co. of California and Chevron U.S.A. Inc. to avoid $19.3 million of plug and abandon obligations, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

In connection with its operations, ATP said it has incurred various statutory or contractual liabilities resulting from its interests in and operation of the wells, including obligations to properly plug and abandon wells and dismantle and decommission various fixtures and production-related equipment on the property.

As of Jan. 7, the company said it estimated that its total plug and abandon obligations for its GB 409 wells were about $12 million, plus $7 million associated with decommissioning of the umbilical line between the GB 409 wells and the closest production platform.

In addition, ATP estimated that it has $300,000 of obligations related to its ST 48 wells.

In exchange for the well lease interests, Union Oil and Chevron will assume all obligations and liabilities related to those leases.

ATP Oil & Gas is a Houston-based offshore oil and gas development and production company focused in the Gulf of Mexico, the Mediterranean Sea and the North Sea. The company filed for bankruptcy on Aug. 17, 2012 under Chapter 11 case number 12-36187.

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