ATP Rises on Additional Data From Israeli Project

ATP Oil & Gas Corp. (ATPG) rose the most in four weeks after a partner reported flow tests from an Israeli natural-gas discovery announced earlier this month.

ATP, based in Houston, rose 7.9 percent to $1.51 at the close in New York, the biggest gain since July 2. The shares have fallen 79 percent this year.

The Shimshon well off the coast of Israel was flowing at a rate of 40.2 million cubic feet a day at the end of a 54-hour test, Isramco Negev 2 LP (ISRAL), which has a 39 percent stake, said today in a statement. ATP is the well operator with a 40 percent interest. Isramco reported July 1 the field may hold 2.3 trillion cubic feet of gas.

“The company and its investors would be grasping on any good news,” Oliver Corlett, a New York-based analyst for R.W. Pressprich & Co. said today in a telephone interview. It remains unclear whether the test is consistent with the company’s estimate of the field’s size, he said.

Corlett rates ATP shares at market perform, the equivalent of a hold, and doesn’t own any.

The shares fell 28 percent to $1.40 on July 27, after Bloomberg News reported that bondholders are organizing in anticipation of a potential bankruptcy, citing two people familiar with the matter.

To contact the reporters on this story: Jim Polson in New York at jpolson@bloomberg.net; Sharon Wrobel in Tel Aviv at swrobel4@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.