As I think about this reported find in Daniel East and West and ATP once held a 40% interest in these fields, I am troubled and somewhat puzzled. Hundreds of millions of dollars have been spent to pay professionals in this case and what has been the result? Nothing more than a common money grab.
Did you know that according to the resource report, Netherland and Sewell in their evaluation of the Daniel East and West fields used 3D seismic data acquired in 2001 by Western Geco with the processing completed in 2013? PGS also acquired a new seismic data set in 2014, which was processed by Western Geco and completed in 2015.
To me this 2014 data was to confirm what was found in the 2013 processing. Both data sets were used to make this evaluation of the David East and West fields. So we had seismic data shot in 2001, final processing in 2013, and with that a few people had a very good understanding what the David reserves might be, my question who were the folks that knew?
Did you also know that it was reported in January 2013 that Isramco Negev 2 partnership said that they had submitted a court petition to the bankruptcy court to buy the rights of its partner, ATP Oil and Gas, in Israel's offshore Shimshon natural gas field for $39.7 million.
Isramco and its affiliates owned 60% of the Shimshon field, and ATP owned 40%. (5% ATP and 35% ATP East Med) My guess is that Isramco’s offer was no more than 10 ten cents on the dollar value; maybe less.
Isramco stated, “because ATP has filed for bankruptcy, the court must approve the sale”. Isramco also reported that the Shimshon field likely contains up to 2.3 Tcf of gas, according to geological surveys. ) Today ATP only holds a 5% interest, what happened to the 35%.
You will not find information regarding this January 2013 $39.7 million dollar offer in any of the bankruptcy court documents, but you will find a filing on 1/31/2013 stating Doyle, Restrepo, Harvin and Robbins representing Isramco, court document 1295.
So now we are talking 2013, the dip lenders are buying the assets, 6/21/2013 court document 2094, limited objection by Isramco to court document 1252; you may recall the dip lenders at the eleventh hour tried to slip into their purchase the Israeli assets. Franks Casing steps up at the same time with Isramco, court document 2097, joinder in Isramco objection and the result, the Dip can’t have the Israeli assets.
What is interesting in Isramco objection they state, ATP East Med Number 1 B.V. (“ATP BV”), entered into Farmout Agreements and Joint Operating Agreements with the Isramco Parties with regard to oil and gas exploration on the Shimshon License and the Daniel Licenses, offshore licenses located off the coast of Israel. (This represented the 35% interest in these fields.) Because of ATP BV’s inexperience and affiliation with ATP, ATP effectively became the Operator of the Licenses, (This represented the 5% interest) Isramco continues, although it (APT) has probably forfeited that status under Israeli law. (But today ATP still holds the 5% interest.)
It is documented that the DIP Lenders tried in the eleventh hour to take these assets and of course they had to know of Isramco’s earlier offer , again my guess Isramco’s offer was no more than 10 ten cents on the dollar; maybe less. Just me, but someone knew what the seismic data contained and of course we have no clue as to what was going on behind the scenes in this bankruptcy with these assets. The DIP did not get the assets and it appears Isramco did.
The sale of ATP Netherlands started around 10/1/2013, court documents 2618,2619,2622,2628,2666 and 2678. With this sale all of the Israeli assets where to be transferred from ATP East Med to ATP before that sale was to be completed. These assets were the 35% holdings of the Shimshon and David fields. At that closing ATP was to hold all of the Israeli assets.
Another interesting late 2012 fact, court document 1046 order declaring effect of the automatic stay regarding the debtors property including the United Kingdom, Netherlands and Israel which was signed on December 13, 2012.
With the transfer of the Israeli assets from ATP East Med to ATP in October 2013, one would think that the 40% interest in the Shimshon and Daniel licenses would have been preserved. June 2013 and October 2013 we still held these assets.
So maybe someone can help me understand what happened to the 35% interest in these fields? The dip didn’t get the assets and it appears Isramco did (35%) without paying ATP one dime, regardless of the Automatic Stay.
With the transfer of these assets from ATP East Med to ATP how does the court not preserve and protect these assets. Maybe just maybe the professionals in this case told the court these assets had no value. I remember one lady telling me they had no value.
Just me again, I don’t think folks understand my efforts in trying to preserve ATP Corporation as an entity. I speak of corporate governance denied to equity holders as third parties have made business decisions that only the board of directors could approve, and the lack of fiduciary responsibility by those third parties to equity holders, but the bottom line is if APT were to be preserved, where we equity holders maintained our ownership, with a new board of directors, we would have a vehicle to perform a postmortem on every element of this bankruptcy case.
There is no court protection against fraud and or intentional malice with regards to fiduciary responsibilities in bankruptcy cases. Dead corporations tell no stories, they just go away. No disclosed harm, no foul. For me it is hard to understand how only a few profited from this bankruptcy!
With a preserved ATP Corporation and new elected board they might have an interest in reviewing all of the documents,communications and deals and side deals made in this bankruptcy looking for elements of fraud and malice by the parties. How ATP can lose their 35% interest in these Israeli fields but still maintain the 5% interest is puzzling. How can we lose this 35% without a court hearing and or some notice made to equity holders? Is this remaining 5% the result of some deal that was made by the professionals in this case?
Isramco reported the Shimshon field likely contained 2.3 Tcf of gas and now the David fields reported at 8.9 Tcf; that totals 11.2 Tcf reported in these fields, then we learn that there was seismic data reported to have been completed in 2013, maybe just maybe if the DIP lenders would have allow monies to be spent developing these fields the outcome of this bankruptcy might have been different, but they. the DIP, would not have received the billions of dollars of assets they claimed and received in late 2013, they also tried to claim the Israeli assets at the eleventh hour.
And ATP”s 40% interest in the Israeli assets reduced to 5%, is this the result of deals, deals and more deals. Maybe just maybe no one cares, are we just sitting back with our fingers crossed hoping that we might receive a few pennies for our equity ownership.
Or maybe some might be mad as hell.
