ATP Oil & Gas Corporation Expands Offering and Closes $150 Million Private Placement of Preferred Stock

Business Wire, March 20, 2006

HOUSTON -- ATP Oil & Gas Corporation (NASDAQ:ATPG) today announced that it has upsized and closed its previously announced private placement of non-convertible, perpetual preferred stock ("Preferred Stock"). The issue has been expanded to $150 million and closed today, March 20. The Preferred Stock carries a non-cash dividend of 12.5%. The Company intends to use the net proceeds from this offering to expand its scope in certain projects, to accelerate its development activities and for general corporate purposes.

The issue has no stated maturity, there is no common share dilution to existing shareholders as the issue is not convertible into common shares of the Company, there is no added debt to impact lenders and the issue can be redeemed at the Company's option at any time. The dividend becomes payable in cash after April 2011 or after the repayment of the current outstanding term loan, whichever comes first.

About ATP Oil & Gas

ATP Oil & Gas is focused on development and production of natural gas and oil in the Gulf of Mexico and the North Sea. The Company trades publicly as ATPG on the NASDAQ National Market.

About the Private Placement and Forward-looking Statements

The Preferred Stock will not be registered under the Securities Act of 1933, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The Preferred Stock will be offered in a private placement in the United States pursuant to applicable exemptions under the Securities Act of 1933. This press release shall not constitute an offer to sell or the solicitation of an offer to buy.

Certain statements included in this news release are "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. ATP cautions that assumptions, expectations, projections, intentions, or beliefs about future events may, and often do, vary from actual results and the differences can be material. Some of the key factors which could cause actual results to vary from those ATP expects include changes in natural gas and oil prices, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as our ability to access them, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting our business. More information about the risks and uncertainties relating to ATP's forward-looking statements are located in the Company's SEC filings.