ATP Reports Second Quarter Results and Operational Update

Business Wire, August 9, 2007

HOUSTON -- ATP Oil & Gas Corporation (NASDAQ:ATPG) today announced second quarter 2007 results and an operational update:

* Achieved quarterly production of 160.3 MMcfe per day resulting in revenue of $132.2 million;

* Achieved net income of $6.1 million or $0.20 per basic and diluted share;

* Drilled and completed Wenlock W1 well in the U.K. sector North Sea with a company record 3,900' horizontal completion and flowed at the limit of the test equipment;

* Placed two wells on production at Ship Shoal 351 in the Gulf of Mexico and expanded the development plan to include two additional extension wells;

* Successful well test of the Mississippi Canyon 711 #8 well which flowed at the limit of the test equipment;

* Increasing throughput capacity of Gomez Hub to approximately 200 MMcfe per day, gross;

* Finalizing the tie-in of the fourth and fifth wells at our Gomez Hub.

Results of Operations

During the second quarter of 2007, production increased 8% to 14.6 Bcfe (160.3 MMcfe per day) from the comparative period in 2006 while revenues from production increased 21% to $132.2 million during this same period. Price realizations reflect an overall 12% increase in our average sales price per Mcfe from $8.05 for the second quarter 2006 to $9.05 for the second quarter 2007. For the first half of 2007 compared to the same period in 2006, production increased 57% to 30.5 Bcfe, revenue increased 79% to $276.6 million, and price realizations have risen 15% to $9.07 per Mcfe.

Lease operating expenses ("LOE") for the second quarter of 2007 decreased to $20.1 million ($1.38 per Mcfe) from $21.3 million ($1.57 per Mcfe) in the second quarter of 2006. The 2006 period included costs related to hurricane repairs performed on certain of our oil and gas properties in the Gulf of Mexico. The 2007 period included increased costs primarily attributable to the production gains noted above, higher insurance premiums and costs associated with our increased ownership in the Canyon Express Pipeline. For the first six months of 2007 compared to the same period in 2006, LOE per Mcfe has decreased from $1.64 to $1.35.

General and administrative expense ("G&A") decreased 11% to $6.6 million for the second quarter of 2007 compared to $7.4 million for the same period of 2006, primarily due to noncash compensation, related charges and professional fees, partially offset by higher general office costs. Included in G&A is noncash stock-based compensation expense of $1.7 million and $3.3 million for the three months ended June 30, 2007 and 2006, respectively.

ATP recorded a net tax benefit of $1.1 million during the quarter ended June 30, 2007 related to our foreign jurisdictions, based on the expected 2007 effective tax rate of each jurisdiction. The rates were determined based on the projected results of operations for the year, the valuation allowance released and permanent differences affecting the overall tax rate in each foreign jurisdiction. In the comparable quarter of 2006, we recorded a tax provision of $3.3 million related to our foreign jurisdictions. In the U.S., the tax provision recorded on our book income for both periods was offset by a partial release of the valuation allowance.

For the second quarter 2007, ATP reported net income available to common shareholders of $6.1 million, or $0.20 per basic and diluted share, as compared with a net income available to common shareholders of $6.4 million, or $0.21 per basic and diluted share for the second quarter 2006.

Second quarter net income available to common shareholders was impacted by a previously announced exploration expense of $10.6 million. In addition, ATP recorded impairment expense of $5.8 million. Research analysts typically exclude the nonrecurring impairment charge from their published estimates. Accordingly, after adjusting for impairment expense, ATP had net income available to common shareholders of $11.9 million or $0.40 and $0.39 per basic and diluted share. A reconciliation of non-GAAP net income for the quarter can be found near the end of this press release.

The company's selected operating statistics and financial information included within this press release contains additional information on activities for the second quarter and the comparable 2006 period.

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Operations and Development

Gulf of Mexico

Mississippi Canyon ("MC") 711 (Gomez - 100% Working Interest) - During the second quarter, we successfully drilled the MC 711 #8 well. The well encountered high quality sands in the 3750B and 3750C interval. The well flowed at the limit of the testing equipment, 28 MMcfe per day. We anticipate booking additional proved reserves at year end Gomez because of the results of this well.

ATP is currently upgrading processing and compression capacity on the ATP Innovator to approximately 200 MMcfe per day, gross. The capacity upgrade began at the end of May with a complete shut-down of the facility for 18 days. For the remainder of June and the beginning of July, the ATP Innovator handled production from Gomez at a reduced rate. A second complete shut-down of the facility began on July 18th and ended on August 5th when Gomez was placed back on production. In total the ATP Innovator was shut-down for 37 days, a period shorter than our expected shut-down of 45 days. During the third quarter of 2007, the MC 755 (Anduin) #2 and MC 711 #8 wells will be tied back and brought on production.