ATP Seeks to Auction Gulf of Mexico Deepwater Properties

ATP Oil & Gas Corp. asked for a bankruptcy court’s permission to auction deepwater properties in whole or in blocks, saying the value of the underlying reserves could exceed $6 billion.

“The deepwater properties have diversified and oil-weighted proved asset bases with compelling development projects driving significant cash flow,” ATP said in a filing yesterday in bankruptcy court in Houston, proposing a March 26 auction.

ATP filed for bankruptcy Aug. 17, blaming its insolvency on the 2010 Deepwater Horizon oil rig explosion in the Gulf of Mexico and the drilling moratorium that followed.

The company has leasehold and other working interests in 23 deepwater blocks, nine of which are producing, Houston-based ATP said in the filing. The properties are concentrated in the gulf, according to ATP.

The company is also seeking permission to sell two floating production facilities, the ATP Titan and the ATP Innovator, that operate in the gulf, according to the filing.

Seven parties have signed confidentiality agreements with the company to get enough information about the properties to potentially bid, ATP said.

The case is In re ATP Oil & Gas Corp., 12-36187, U.S. Bankruptcy Court, Southern District of Texas (Houston).