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I agree!
This means everything, including the CEO's desk and chair.
From the Mayer Brown filing #1652
02/01/13 Gray, Robert F. 0.20
Work with Rick Hyman on foreign lien issues in DIP agreement regarding UK assets.
12/10/12 Gray, Robert F. 0.80
Review IOG proposed transaction for purchase of ATP UK (0.30); and telephone conference with John Tshirhart, Leland Tate and Charles Kelley (0.50).
02/20/13 Beltzer, Howard S. 0.10
Correspondence with C. Kelley regarding UK equity sale issues.
02/27/13 Gray, Robert F. 1.80
Attend coordinating meeting with UK to discuss US issues in connection with sale of shares of UK, process, timing and milestones (1.30); follow up call with Devi Shah and Rob Hamill (0.50).
Yes sir, he also hit on Ample.
Thanks for the information.
Seriously not surprising!
Don’t you love the social media and public access to all of the different sites where people put themselves out there! On one site, Avalon Director or maybe X Avalon Director updated her page recently.
Past Employment!
Director
Avalon Oil & Gas, Inc.
November 2006 – April 2013 (6 years 6 months) Greater Minneapolis-St. Paul Area
Chief Marketing Officer, responsible for strategic partnerships, investor relations, business development, marketing communications, technology commercialization and innovation strategy for cleantech investment group.
If you didn’t have a history with investing in Avalon, one might think, huh! Instead of possibly “hysterical laughter” when reading the profile.
I am sure she is a good person, loved by those that know her, but how embarrassing can it be, to have been referred as “management” of Avalon Oil and Gas.
As an investor in Avalon, you be the judge.
Chief Marketing Officer, good grade or bad?
Responsible for strategic partnerships, good grade or bad?
Investor relations, good grade or bad?
Business development, good grade or bad?
Marketing communications, good grade or bad?
Technology commercialization, good grade or bad?
Innovation strategy for cleantech investment group, not even sure what this is.
My hope is she will finally step up and do the right thing, sharing information that just might help right the ship. I am sure she has my email address.
Very interesting question; Italian oil group Eni in 2007 agreed to buy Gulf of Mexico fields from Dominion in a $4.8 billion deal, as the group continues to expand globally to replace its increasingly mature assets.
Eni (US:E) at that time, said it was paying $4.76 billion for assets held by Dominion Resources (US:D), including exploration assets valued at $680 million.
Look at what they currently hold in the GOM and the recent GOM lease sale on the blocks they purchased. They have the bucks to be a player.
As we wait, and in the interest of conversation, it may just turn out that ATP might end up being “a day late and a dollar short” so to speak, if the shallow water assets are all sold off.
There has been some dialog concerning the debtor’s shallow water assets, some of the dialog centered on the super major’s willingness to sell off their shallow water assets because they were played out and ATP purchased these types of assets.
I am sure some folks are aware that Chevron didn’t sell off all of its shallow gulf acreage when all its peers did 15 years ago. Back then the conventional wisdom was that the shallow waters were played out.
Chevron held onto its assets because it liked controlling the hundreds of miles of subsea pipelines that had been laid in the gulf over the years — the better to get its deep-water barrels to shore. And now they’re finding all sorts of ultra-deep prospects under these “legacy” assets they’ve held for years, in shallow waters. With changes in technology, below the salt layer may just bear some “bonanza size” fruit.
These are the first of what some think will be sizeable reserves from the sub-salt, ultra deep trend onshore and in the shallow waters of the Gulf of Mexico.
McMoRan Exploration Co., New Orleans, booked 12.9 billion cubic feet equivalent of net proved reserves as the first reserves to be booked in the South Louisiana ultra-deep subsalt trend. Consulting engineers engaged for McMoRan’s sole account estimated proved, probable, and possible oil and gas reserves of 546.7 bcfe gross, 141.7 bcfe net to McMoRan, at the Lineham Creek exploratory well operated by Chevron USA Inc. onshore in Cameron Parish, La.
Chevron has a 50% interest in Lineham Creek, and McMoRan has 36%. Energy XXI (Bermuda) Ltd. has 9%, and W.A. “Tex” Moncrief Jr. has 5%. The reserves McMoRan booked are associated with interim results from the sands encountered above 24,000 ft. The well is drilling below 27,600 ft. to evaluate the deeper primary objectives and has a proposed total depth of 29,000 ft. Development plans will be determined following completion of drilling and evaluation of the deeper objectives.
I would guess looking at the State of Louisiana owned Rockefeller Wildlife Refuge where the Lineham Creek exploratory well is being drilled; the state of Louisiana just might be a big winner.
And I would guess the shallow water assets held by ATP, blocks referenced with VR, EC and SM might have a little more value than other shallow water assets, some might think.
Jim Bob Moffett is a little more vocal regarding this find, as McMoRan Exploration Co is not the operator, but holds a 36% interest. McMoRan Exploration Co is the operator of Davy Jones discovery in shallow water, South Marsh Island, again a subsalt find in SM block 230.
This is not new information regarding very deep targets in the GOM shelf’s shallow waters. Those oil and gas companies bidding on the ATP assets understand the risk and cost to drill these types of wells. Technology changes everything, including the value of these shallow water ATP assets. ATP may end up being a “a day late and a dollar short”, but the US economy will be a big winner with these types of finds, developed and producing.
While we wait, those that have an interest might read this June 2010 article about Jim Bob’s Treasure Hunt and the ultra-deep Davy Jones discovery.
www.energyxxi.com/pdf/OGI_best_discovery.pdf
Could you help me understand this comment; Plus the ORRI/NPI want 1 billion plus.
While we want for information, you might find an interest in the article from Rigzone. America: On the Verge of Exporting LNG. You also might want to add Rigzone as a favorite if you invest in oil and gas.
The article speaks of Exporting LNG, this will change everything, reducing our trade deficits and creating an economic boom bringing US dollars back to our shores and pockets.
The American public is enjoying record gas supplies and prices that are just a quarter of what Eastern countries pay and in some parts of the world even higher.
Oil and gas investors should find the article interesting.
http://www.rigzone.com/news/oil_gas/a/126053/America_On_the_Verge_of_Exporting_LNG
Delay after delay after delay, if there wasn’t another, already identified party and or parties interested in the gulf assets, my guess the assets would have been sold to the dip lenders, which might have resulted in a fire storm of complaints from all parties.
Is it fair and reasonable to think the sale of the gulf assets would be delayed again, hoping that an unidentified possible buyer will materialize within the next two weeks?
The court filing #1757, “NOTICE OF RESCHEDULED BID DEADLINE, AUCTION DATE, AND SALE HEARING WITH RESPECT TO SALE OF DEBTOR’S SHELF AND DEEPWATER ASSETS”
also states;
“PLEASE TAKE FURTHER NOTICE that, pursuant to Paragraphs 14 and 16 of the Deepwater Bidding Procedures Order, the Debtor, with the consent of the DIP Lenders and the DIP Agent, and in consultation with counsel to the Creditors’ Committee, the Equity Committee, the Prepetition Second Lien Trustee and the Ad Hoc Committee of Second Lien Notes, modifies the date and time of the Bid Deadline, the Auction, and the Sale Hearing as set forth herein:
So now we know, consent of the DIP Lenders and in consultation of the other parties the bid deadline has been pushed out a couple of weeks. Do we thank these folks are hoping an unidentified possible buyer will materialize within the next two weeks?
So my guess there is at least one company that might have the financial resources to be a player in this bankruptcy. If it was as simple as outbidding the dip lenders by a dollar, one would think that already would have been done and too many folks would be raising holy hell right now.
If you look at other Oil and Gas companies that have filed for creditor protection recently (2010/2011) and compare their filing, debt and assets to ATP’s, you might see some ray of hope and or some type of “possible” meaning in these delay’s, besides we all will lose.
Chevy, tommorow is “Free Private Message Hour” on Ihub, if you don’t mind I will PM you with my speculation relating to those other companies, just one that fits the ATP profile.
I would be interested in your evaluation of the BK history of that company and what has happen to them to date, comparing it to ATP. I am not suggesting that it would happen to ATP, nor do I have any knowledge that any deal might be in the works, but as you know, I do like to speculate on “what if’s”, just for fun, but really don’t want to create false hope in my speculation.
Looks to me like 1755 had a typo 15 vs. 25, we are all human, I would think!
As we wait!
I’m sure everyone found court filing 1754. Looks like it was filed today and posted today; Filing 1754, United States Notice of Shut-in Order! Not surprising ATP did nothing to correct the issues as they wanted those assets shut-in anyway.
And Court filing 1756
“AGENDA FOR HEARING SCHEDULED FOR APRIL 25, 2013 AT 1:30 P.M.”
“NO MATTERS ARE SET FOR HEARING ON APRIL 25, 2013, IN THE
ABOVE-CAPTIONED CASE”
Interesting, no matters are set for hearing on April 25, 2013, didn’t we have a Shelf and Deepwater Sale Hearing scheduled. Any speculation on why we would have “No matters are set for hearing” notice?
Very interesting!
So far, common holding at $.184, the preferred at $.95 and the bonds appear to be holding. I would think speculation of bad news might have moved these prices lower. And speculation of good news, we would see a higher market price.
So what news that no one is talking about might keep the market stable, today?
After BP rested its defense Wednesday in the first phase of the BP trial in New Orleans. Barbier, who is trying the complex case without a jury, announced he would give the parties 60 days to file briefs to support their positions.
Phase two is tentatively scheduled for September, but it could be earlier, as Barbier indicated in May that he could call for a two-to three-week recess between the two phases. My guess would be July when phase two might start.
Under the Clean Water Act, a finding of simple negligence would result in a maximum fine of $1,100 per barrel, while gross negligence or willful misconduct could result in a maximum fine of $4,300 per barrel.
The Plaintiffs' Steering Committee, representing private claimants, also attempted to show that the actions of BP and its contractors met the gross negligence or willful misconduct standards, which could make the companies liable for larger, punitive damage awards.
Following the second phase, Barbier will again request all of the parties to submit proposed findings and conclusions, which he'll consider before announcing any rulings.
After the second phase, if any issues remain undecided, additional trials will be required. In addition, individual lawsuits by private parties that were not included in earlier settlements with BP or other companies would likely be returned to the jurisdiction where they were filed for further action, based on the Barbier's decisions determining the percentage of fault to be charged against each company involved in the spill.
Public document; court filing April 16th. My favorite part #14.
If you were kept in the dark, what would you do?
OFFICIAL COMMITTEE OF EQUITY SECURITY HOLDERS OBJECTION WITH RESPECT TO DEBTOR’S PROPOSED SALE OF CERTAIN DEEPWATER PROPERTY, document number 1712
OBJECTION
14. The sole reason this sale is before the court now is that the Debtor’s DIP Lenders insisted upon an expedited sale process. In fact, the only reason the Equity Committee is submitting this objection now, when there is not yet a proposed sale to object to, is because the expedited sale timing imposed upon the Debtor by the DIP Lenders requires that objections be filed prior to the auction.15. The Equity Committee at this point has no idea what will be the economic terms of a proposed sale may be or if there is a proposed sale at all. Accordingly, the Equity Committee reserves its right to supplement this objection upon the discovery of new information about the proposed sale.
Public document; court filing April 16th. Do you think the equity committee knew this be before they filed? At least we know two parties need additional time for their bid, if they submit one.
NOTICE OF LIMITED EXTENSION OF BID DEADLINE, document number 1715
“Only two parties have submitted such written requests. All other parties remain subject to the Current Bid Deadline.”
Have a bet with myself about who these folks might be.
Someone asked about any good news!
Public information: Non-debtor ATP; UK, Drilling in the North Sea.
http://www.rigzone.com/data/offshore_drilling_rigs/314/Semisub/Transocean_Ltd/GSF_Arctic_III
My guess, Skipper field located in block 9/21a in the North Sea.
“The well was targeted to spud in the first half of 2013 by the Transocean Arctic III. The well slot is part of an innovative long term contract entered into by ATP that provides for the development well drilling for Cheviot and also allows certain third parties to use rig slots at a discount to prevailing market rates.” Again public information!
More Public information; And in the BP trial in New Orleans,
Monday April 15th, “BP's Houston-based wells team leader testified Monday that he had grown frustrated by a series of last-minute changes to the Macondo drilling project in the days before the well blew out.”..... “was questioned about an April 17, 2010 email, in which he warned BP's manager for oil drilling operations in the Gulf, David Sims, that the 11th-hour changes had pushed rig leaders "to their wits end. The quote is flying by the seat of our pants."
“The first phase of the complex court case focuses on whether their actions, BP and parties, leading to the accident constitute gross negligence or willful misconduct.”
Second phase is projected to start in September 2013. If the court finds gross negligence or willful misconduct, we might see a settlement before September 2013.
56Chevy ….. Thanks for your posts. Regardless, I do value your comments. Would more than likely still be holding common if it was not for your input.
It is perfectly OK if no one sees value in my strategy, I’m not trying to make a living playing the market nor am I trying to sale something. Playing with my own “fun” money, not others!
It has been entertaining talking about our investment decisions. And I do appreciate a frank dialog, I maybe old but never too old to learn something new or change my opinion when I can see the logic.
56Chevy….. Thanks for your post. Don’t recall saying “I have $3 billion dollars’ worth of what would have to be privileged material information”, as I don’t.
Did say I do have DD that would suggest the BP claim “maybe just maybe” will be paid to ATP.
My DD is all public record, no inside information, don’t have any and don’t want any; as we all know that would be illegal, and quite frankly no challenge. I also have no need and or desire to report false and misleading information; to line one’s pockets with dollars.
So let’s start with public record court filing #1575, item nine, “While it is possible that BP will pay the amount asserted in the OPA Claim”, don’t you think that DD “public record” might be a “maybe just maybe” and not “fools gold” as some have suggested? … public record… “it is possible that BP will pay the amount asserted in the OPA Claim”; what is that claim $3.01 billion.
I don’t believe the professionals that developed the claim number (3 billion), just picked a number out of the sky, but have documentation to support that figure. With what these folks are getting paid they better have their ducks in a row. Why is it so easy to believe ATP’s claim is not worth $3 billion dollars and they won’t be successful in proving that claim and collecting the money? Fool’s gold!
Public record, Dow Jones news wire, “To date BP has spent a total of $37.2 billion pre-tax, which is equivalent to $26.1 billion after tax, on costs arising from the 2010 disaster.” Somebody got paid, but ATP won’t. Why is so easy to believe ATP won’t get paid, fool’s gold or maybe just maybe?
Public record, Dow Jones news wire, “Although BP's financial results weakened in 2012, additional divestment proceeds should allow the company to absorb cumulative costs of up to $40 billion after tax, and retain its A2 rating, the agency said in a report.” Moody’s.
Don’t you think maybe just maybe BP has the dollars to clean this mess up; “should allow the company to absorb cumulative costs of up to $40 billion after tax, and retain its A2 rating”
Does anyone think BP sees the value of retaining its A2 rating and they can spend $40 billion after tax dollars to do so? Why is it so easy to believe ATP won’t get paid, fool’s gold or maybe just maybe?
And my favorite;
Public record, Dow Jones news wire, “BP PLC has headroom of around $14 billion after tax credits to cover Clean Water Act fines as well as other claims and litigation costs stemming from its April 2010 Deepwater Horizon disaster in the U.S. Gulf that aren't payable from its $20 billion trust fund, ratings agency Moody's said”. Why is it so easy to believe ATP won’t get paid, fool’s gold or maybe just maybe.
Can you imagine with $26.1 billion after tax dollars being spent thus far by BP, with headroom up to $40 billion after tax dollars that could be spent, before it affects BP’s A2 credit rating. Why is it so easy to believe ATP won’t get paid? That would be like BP getting out of this thing with a slap on the hand.
So now, with this limited shared DD, does anyone else think that “maybe just maybe” ATP’s BP claim will be paid?
Do you think those professionals that developed that claim number of $3,011,534,889.00 have the documentation to support that figure?
Do you think the court would authorize the expenditure to chase fool’s gold?
Do you think BP doesn’t have the money to pay ATP’s claim.
Fool’s gold or maybe just maybe!
And if you have a desire for more BP DD;
Public record, “BP has a pipeline of around 45 potential high-quality upstream projects it can develop during the rest of this decade. Of these, BP is particularly focusing on four areas--the Gulf of Mexico, Angola, Azerbaijan and the North Sea, BP Chief Executive Bob Dudley told shareholders at the annual general meeting.”
If you have an interest, check out the rest of Bob Dudley comments made at the annual general meeting. You should be able to find them on your own. I like the Gulf of Mexico parts. Maybe just maybe, if BP has the money which they do, it would be beneficial to make peace in the GOM as the public record says BP is particularly focusing on four areas--the Gulf of Mexico is one of those four.
And now the comment, “If playing Ihub small ball is your game..go for it.”
OK….
Don’t recall saying anything about “playing Ihub small ball”, I will say my investment in ATP will not meet the “Substantial Shareholder” definition; as defined by the court.
After a dialog we had months ago, I did sell my common and purchased bonds. I have no interest in selling my preferred as they were too hard to come by at the price I paid. I do plan on continuing to build my position in preferred shares. Have been buying the bonds as they got cheaper and currently on the dips, but have enough now to cover my preferred investment and make a few bucks if the bonds get paid at least twenty cents on the dollar, face value and the preferred gets nothing.
I do think there is more upside to the preferred, if they get paid. Today I can buy the bonds at $6.13 per hundred / $61.30 per thousand in value, the last time I looked. A ten thousand dollar investment would net around 163 bonds with a face value of $1K each, $163K in value, plus interest, for $10K.
If you believe like I do, there is a good chance the preferred will be paid, last price was $.98, if you could buy the preferred at $.98; a ten thousand dollar investment would net around 10,200 shares, face value $100 each, $1.02M in value, plus interest for $10K.
Big difference between $163K in value and $1.02M in value! If you have a budget of $50,000, for a total ATP investment, you could see a monster return.
I like to play it as safe as possible so I hedge using the bonds at 20% of their face value to cover my total ATP investment. If I end up losing my investment, I don’t buy the new BMW next year.
I guess if this is called “Ihub small ball”, I can live with that.
It looks like of the two posts today, one was deleted. It would be interesting to read the deleted post. Maybe just maybe someone will send that post to me in a private message.
I do have a very thick skin and am always looking for others point of view. I do have DD that would suggest the BP claim maybe just maybe will be paid to ATP.
We now have a Nevada filing increasing the authorized from 3.33 million shares to 200 million, let the dilution begin.
Say goodbye to $.12 cents a share.
56Chevy thanks for your post.
*The prospects of billion$ and billion$ from the BP lawsuit had little effect and no staying power. Am I surprised? Not in the least..for now that is fools gold. Our best hope always was, and is, the 2019 Ad Hoc group.
Prior to the release of the BP information, the common was $.07, now it has evened out at around $.20. Bonds were around $5.75 ($57.50) and today I could buy some at $6.30 ($63.00). Preferred was being bought around $.30 by some folks, not me, before the filing and now today a few shares sold for around $.98.
And dialog on the boards have gotten real quiet.
Those that purchased the common at $.04 to $.10 a share, congratulations! I would think for the most part, some of those folks cashed out and are now quietly waiting for the stock to dip. If it does, maybe just maybe these folks will go to the well once again.
I have to agree the least risky play might be with the bonds and Ad Hoc group. And I’m not surprised of the “no staying power” regarding the dialog, but today the common stock price is higher than prior to the BP “suit filing.
Court document 1575
9. In January 2013, ATP, with the assistance of the Firms, submitted a claim to BP
under the Oil Pollution Act of 1990 for loss of profits and earning capacity as a result of the Deepwater Horizon Spill in an amount not less than $3,011,534,889.00 (the “OPA Claim”).
While it is possible that BP will pay the amount asserted in the OPA Claim and/or BP and ATP will reach a mutually-agreeable settlement, it is reasonably likely that litigation will result from the OPA Claim.
I would guess some might think this could turn out to be “fools gold” but with the court authorizing legal expenses, we do in fact have a $3 billion dollar card in the deck along with all of the other assets. The possible reward just got a whole lot bigger for those willing to take the risk. Will that $3 billion dollar card end up in our hand, time will tell.
My guess is folks have read the 3/27 court filing #1629 by now.
“As this Court is aware, the Clipper Wells did not come online as projected and, thus, the estate produced fewer hydrocarbons than budgeted for the month of March 2013”.5
5 Delays in Clipper’s first production also caused a default under the Debtor’s DIP Credit Agreement and the Debtor is actively negotiating a waiver of that default with its DIP Lenders.
Nice win for those who purchased the common at $.09 a share; 100,000 shares, $9K investment. Now, at $.27, $27K!
Don’t think the preferred and bonds can claim the same return to date!
Doesn’t make me look to smart just buying the preferred and bonds.
Finally we get is see the quarterly SEC filing, I remember the day when investors could count on what they read in these filings, but I guess this is a different time and some folks think they can just throw out anything these days.
The “lowlights” of the filing!
Our outstanding went from 3,190,673 to 3,258,062 shares.
KR still shows “Deposits and prepaid expenses” of $160,000. This has been on the books for how many years now????
Total liabilities went from $2,150,383 to $2,263,224.
On page four; common stock is listed at 1 billion shares authorized and 3,265,992 issued and outstanding at 12/31/2012. That 3.265 million number does not match the 3.258 million number on page one for the same time period and where did that 1 billion authorizes come from.
Here is a big one; Total Stockholders Equity went from $402,581 down to $293,445. If that $160K “deposits and prepaid expense credit” is really not there, what is the stockholder equity number then???
Page nine now says “We expect to file an amendment with the Nevada Secretary of State on or before March 31, 2013, to increase our authorized shares to 200,000,000. This was from the vote where my “no vote” was not counted, etrade still has not heard from KR, as they were going to find out for me why my shares were not counted. He filed the annual list with the state on March 8th, but just couldn’t file the authorized increase on that date.
Here is a good one, the Ultrasonic Mitigation Technology made its way back into the SEC filing on page 15; remember KR lost the license and continued to report the ownership. He also spoke highly of the technology and Avalon’s continuing plans for the technology in the stockhouse interview, knowing Avalon didn’t own the technology or any rights to it at the time of the interview. The university lawyers, I am told, had to send KR a letter to remove the reported ownership from Avalon’s web page, and under Note3; “Intellectual property rights” on page 23; Patents, Trademarks, and Proprietary rights, no ultrasonic mitigation technology listed there.
Page 18 is my favorite, Mr. Rodriguez employment agreement expires on March 31, 2013 and down the page he reminds us about his preferred shares issued to an officer/director as payment for $500K, this is the stock he gave himself which still pays interest to him. Nevada law requires a vote of the common stock holders to grant directors and officers this type of ownership, which was never done, why would this be a law? To keep officers and directors from stealing the company out from under the common stock holders! Mr. Rodriguez preferred shares were granted to him by the board, which he was a member, and not by a required vote of the common stock holders.
On Page 19 those paid stock promoters pumping this stock need to read this very carefully, the company cancelled 83,335 shares of common stock that were issued, yes that were issued, to consultants for services provides, pursuant to consulting agreements.
Just me, but I am still waiting for KR to file the increase with Nevada, KR also needs to raise more money, to the tune of around million dollars, and this will give some folks the incentive to go.
If you want to do a little more DD and get some leads, check out what Avalon director JA has been up to lately.
And saving the best for last Note 12, on page 20.
Chevy I do love your greed analogy, who is missing from this list is T. Paul. I am told T. Paul refused his bonus, but the others lined up for theirs.
If the common stock holders, which does not include me, lose everything, so does T. Paul and this group.
So what would be worse for the common holders; T. Paul and this group owning or not owning common shares???? And, if they get paid, the preferred get paid first and I sure hope the common’s get paid.
As I look at those bonus $ numbers, one other thing comes to mind, our “greedy” silent partner each and every one of us carry on our backs, our Uncle Sugar. 40% of those bonus dollars got paid to Uncle Sugar. The only reason I even bring this up and most folks don’t know and or care, 2013 is the one hundred year anniversary of federal income tax, which began in 1913 with the ratified 16th amendment.
In 1913 the bottom bracket was 1% and the top bracket was 7%. Can you imagine, the first 137 years of our nation’s history, no federal income tax! Maybe just maybe, if Uncle Sugar didn’t take 40%, we would see top executive bonuses decrease by 40%.
I guess not, the trend is to have this group pay higher taxes, so we can expect to see top executive bonuses continue to rise, it’s the American way, uncle sugar wants his cut too.
Bottom-line, if you are a common holder do you want this powerful greedy bunch on your common holder team, this group convinced the DIP lenders to give them another $100 million. Wonder what these Dip lender’s bonuses will look like!
As we all sit, wait and watch, here is a tidbit of information written and published by Richard Thompson, NOLA.com | The Times-Picayune on 2/22/2013.
Richard Thompson has written a series of articles in relation to the current BP trial here in New Orleans. The article titled, “The defendants in the BP oil spill trial, and what's at stake for each”, last paragraph.
"Last year, BP negotiated deals with as many of its drilling contractors as possible before the trial was scheduled to start, including its partners in the well.
Anadarko Petroleum Corporation agreed to pay BP $4 billion.
MOEX Offshore agreed to pay $1.1 billion, which BP will use to pay claimants. MOEX also agreed to a partial settlement of claims with the Justice Department for an additional $90 million.
Weatherford, the maker of a float collar used in the well during cementing, agreed to pay $75 million.
Cameron International, the manufacturer of the blowout preventer, agreed to pay $250 million."
What’s interesting to me, BP got billions from is partners in settlements, on issues BP caused, now they have the financial burden on their back.
With Anadarko paying BP $4 billion and MOEX Offshore paying $1.1 billion to BP, is it fair and reasonable to believe ATP won’t get $3 plus billion?
Just me, I believe it is just a matter of time, let’s have a jury trial here in Louisiana and see if that 3 billion grows by nine times.
Bourg33 thanks for your message, the preferred symbol is ATPGQ.
Buckeyeoil thanks for your post yesterday, I didn't have a chance to read it until this AM. Sorry you have issues with negative leaning posts, but I still believe caution is in order when we see limited reported data coming from the field. I still stand by my comments, if you see it another way thanks for sharing, you just might change my understanding and or opinions.
Just as a general rule for me “shop talk” is nice, but I do believe public and private companies might have a big issue with employee’s, contractors and or agents disclosing confidential information, in this case, production numbers and flow rates, to the general public and then seeing this information appear on message boards. Just me, but I would think this type of disclosure might warrant someone to lose their job. Today it is very easy to track back the source.
Maybe you can help me with a few things in your post, I am “old school”, does all caps still mean screaming, I am really not sure anymore?
You also reference “trustee”, maybe I missed something here but I don’t believe the court has assigned a “trustee”. In a court filing yesterday, notice of hearing on motion of the official committee of Unsecured credits, this group is trying to have the court assign a Trustee, along with trying to move the case to Chapter 7. What “trustee” might you be referencing in your post?
Your help would be greatly appreciated.
As you wonder what happened, some think profit taking!
Just me, Romang reported yesterday; Kramer 38 post: “The well tested 9000 bopd last august on a 48 hr test. The fact that they got nearly 8000bbls production after 2 days of production is pretty good. During that time period the well is still giving up fluids that have been injected into the formation, seawater in the pipeline etc. That's a pretty decent amount of time for an accurate test and a good estimate of actual flow rates.”
Some might think, good news, with no official report on production and the news Kramer 38 posted concerning 2 days of production at 8000 bbls, (average per day 4000 bbls) folks should read the milestones set in the DIP 3# agreement. Document 1476-1.
“On or before February 28, 2013:”
“1. GC 300 #4ST5 is expected to achieve commercial production no later than March 3, 2013 and is expected to produce for at least five consecutive days at an average rate of not less than 7,500 boepd on a gross basis.”
4000 bbls of production per day, (two day average), does not appear to meet the production milestone of 7,500 boepd.
Without an official reporting, caution might have killed the run and maybe not “profit taking”, just me!
My DD, before the BP information came out, would suggest the commons should still own some assets coming out of BK, but on the other hand you just don’t know.
So I don’t own any common shares. I own the preferred which are risky but get paid before the common holders. They have a face value of $100 a shares and pay 8%, but no voting rights. They can be converted to four for one and the trading on these shares is kind of hit and miss. I try to have a buy order in all the time for the preferred; just in case it dips to a bargain price which it has done a number of times. I have been buying the bonds more or less as insurance. Bonds will be paid before the preferred.
I have been following the BK court reporting and the additional $100 million ATP received from the dip lenders had me scratching my head. Why give these guys another $100 million. The list of the dip lenders and the approvals it took for the increase, they know something that warranted another $100 million, when they didn’t have to give them another penny. Considering ATP's track record of not hitting deadlines, something convinced these folks to give them more money. What that something is I don’t know, but we eventually find out. So what has changed?
We all understand ATP’s desire to hire lawyers to handle a possible suit against BP. We all understand ATP believes their claim against BP is 3 plus billion dollars.
If U.S. District Judge, who is hearing this latest lawsuit against BP in New Orleans, without a jury, finds BP and / or the other parties responsible for higher levels of negligence, it could result in a four-fold increase in fines under the Clean Water Act and the awarding of punitive damages for the private plaintiffs.
So with ATP’s claim of 3 plus billion dollars, and if this trial in New Orleans finds the parties, all and / or some of them, guilty of gross negligence or willful misconduct and punitive damages were to be awarded, BP and the parties might find ATP’s claim of 3 plus billion to be fair and reasonable, they might even agree to pay attorney fees along with the settlement dollars.
Why would BP and the other parties do that?
Exemplary damages n., often called punitive damages, these are damages requested and/or awarded in a lawsuit when the defendant's willful acts were malicious, violent, oppressive, fraudulent, wanton, or grossly reckless. The U.S. Supreme Court has limited punitive damages to 9 time’s compensatory damages.
Nine times 3; 27 billion dollars. If you were BP, and losing all of these lawsuits, would you roll the dice for an additional 24 billion dollars? Not too many people would.
A three billion plus award will change everything, common holders, preferred holders, bond holders, and creditors. Just me but I wouldn’t be surprised; if the judge did award punitive damages, the 3 billion claim might just jump up to 6.5 billion in a payout.
ATP was hurt worse than any other company and there name should be at the top of the list of private plaintiffs receiving the most money from BP.
If there are any assets that survive the BK the common share owners will still own those assets. So in the reorganization, the value of those assets would transfer to the reorganized company and the common shareholders would be paid that value in new shares. But there are some interesting twists here.
Just me, but this seems to be a very good day, the court filing and with Fayard involved; they got $32 million for us in a business fraud suit we filed. We paid the hourly rate and not a percentage,it cost us $600K plus.
In the filing it was reported at 3.1 billion in damages, the court could award double that number.
You are still OK, your ownership position will remain the same going from one exchange to another.
This could be a lifestyle changer for lots of folks.
This is what happens when you take your eyes off the ball, and playing with your horses!
Yes, I did “now” read the filing, court document 1575 filed yesterday. They are going after 3 plus billion, two firm to be hired Motley Rice and Fayard.
Do know the Fayard group, I’m still on their Christmas card list.
Even though it was reported in a Forbes article on 8/18/2012 by Christopher Helman, “ATP is pursuing claims against deep-pocketed BP”, and there is an active case going on here in New Orleans. I have found nothing published that states ATP is involved in this suit or any active lawsuit against BP.
Concerning the current suit in New Orleans, I have read the plaintiffs steering committee documents, and ATP could be part of this action, but I would doubt it. This doesn’t mean they could not become a part of the suit and or file a claim with the court after a verdict and judgment.
With the BK issues they face daily, ATP management may be just “waiting it out” to see what the judgment might be in the New Orleans trail, then file suit. I would also think monies to pay lawyers in a suit against BP would be identified in the BK filings. They, ATP management, have a number of options I would think, and some of those options could benefit the current equity holders and then again some of those options, I believe, would benefit the “new reorganized” equity holders.
As a current equity holder, I do believe there is some hope that we will have some position in the reorganized company. That hope lays basically in the “Non Debtor” asset base and the “possible” sale of the GOM assets. It does appear that ATP is trying to preserve its consolidated net operating loss carryovers (NOLs) for the reorganized company. The restrictions the court has imposed on the acquisition of ATP Equity Securities by shareholders that are or become or anticipate becoming Substantial Shareholders while in Chapter 11. The Order was sought by ATP, the benefit of the NOLs may be substantially reduced if ATP undergoes an “ownership change” within the meaning of the Internal Revenue Code.
Just me, but ATP just might wait to exit BK and then file suit against BP. And again, just me, but wouldn’t it be beneficial to try and recover the “total cost” of the BK, (cause and effect), in a BP suit along with the other damages.
If ATP files and wins a suit against BP, after they exit BK, that would be good for the “reorganized” equity holders, but “maybe” not so good for the current equity holders if they receive nothing in the reorganization. At this stage, we have no idea what the current equity holders ownership position might be, if any, after reorganization.
Just me, but at this point in time, I am not counting on a BP lawsuit to pull ATP’s feet out of the fire.
You ask regarding Clipper status.
From court filing on 3/4/2013, document number 1546
NOTICE AFFECTING BID DEADLINE WITH RESPECT TO SALE OF DEBTOR’S
DEEPWATER ASSETS
PLEASE TAKE FURTHER NOTICE that, pursuant to Paragraph 5 of the Bidding Procedures attached as Exhibit 1 to the Bidding Procedures Order (the “Bidding Procedures”), the Debtor hereby advises the Court and the Notice Parties that first-production for oil from the Clipper Well was not achieved on or before March 3, 2013.
PLEASE TAKE FURTHER NOTICE that upon achieving the first-production date for oil from the Clipper Well, the Debtor shall promptly file with the Court and serve on all Notice Parties a notice of the adjusted Bid Deadline with respect to the Sale of the Deepwater Assets together with a revised schedule for the Auction and Sale Hearing related thereto in accordance with the Bidding Procedures.
Anyone surprised??
There is no jury in this “BP and Cast” trial in New Orleans. U.S. District Judge Carl Barbier, is hearing the case without a jury and it is expected to be a three-month trial to determine the share of liability of BP and other companies involved in drilling the well, which eventually will be used to determine how much they will pay in fines for violating federal environmental laws and in damages for private plaintiffs.
If anyone that has an interest, the Plaintiffs' Steering Committee counsel Paul Sterbcow, is representing individuals and companies that sued BP and the other companies for damages.
I am not sure if ATP is a party to the Steering Committee.
With all this “pie in the sky” speculation on my part, can anyone see any reason why the DIP Lenders would give ATP another 100 plus million in financing based on the information disclosed in the court filings, SEC filing and or any other public disclosure?
Forbes article; 8/18/2012 by Christopher Helman; “As Oil Company files for Bankruptcy, CEO Blames Obama.”
The last paragraph of the article;
“So at this point, legal claims might be the most valuable asset ATP has left. In addition to the case pending against the U.S. government, ATP is pursuing claims against deep-pocketed BP. Who knows? With luck and lawyers, Bulmahn could still strike something.”
Everyone affected by the spill is suing BP and the cast of responsible parties.
“Cause and Effect”; if you had beach rental property and could not rent it, you will get a check, if you serviced the GOM, and lost money because of the shutdown, you will get a check, the list goes on and on. Some estimate 40 billion will be paid, BP and cast will be lucky if they can get out of these civil suits only costing them a 100 billion. The jury down here may make them pay five times that number. Speculation here, they will settle before the jury gets the case.
Just me, If ATP is not a party to this current lawsuit, the higher the award and or settlement the better for ATP.
What Changes the Game?
I find it interesting that the DIP Lenders were willing to give management an additional $100 plus million on the already sizeable loan. Did anyone look at the list of who these lenders are? Looks to me like a pretty impressive bunch.
Do you think they knew when they agreed to lend the additional funds, that there were no qualified buyers for the shelf assets? I think they might have known, but pure speculation on my part.
So why would they agree to another hundred plus million? I find it very unusual; if they were after all of the debtor’s assets they would not have to give them any additional funds. These folks are money people and not oil and gas folks. I believe they must think they will be paid, cash, when this thing is settled, but what could give them that idea. Most of the news we see is basically bad news.
The issues with shutting in the Gomez assets and all those unhappy parties involved, you would think the Dip Lenders had some input into this business decision. The reported analysis would suggest no positive revenue here.
Doesn’t appear to me worth the risk of giving the ATP additional funds with no qualified buyers for the shelf properties and no real cash flow from the Gomez assets, why give them an additional loan????
The cash flow analysis for Clipper looks interesting, but again, is it worth the risk? Even throwing in all of the “non-debtors ATP assets”, is it worth the risk, money folks want cash and not assets they have to deal with and sell.
So what is it that these lenders see that would warrant an additional $100 plus million? Anyone have any speculation they would want to share?
Just me and of course “just for fun” as we wait and watch; and I am more than likely wrong, but we have a civil trial going on here in New Orleans that will determine the degree of culpability that BP and the other companies have in the 2010 Deepwater Horizon accident. Some feel, and are now getting their day in court, that the accident was "a classic failure of the managements of BP, Transocean Ltd. and Halliburton which unleashed the worst offshore oil spill in U.S. history and basically the shutdown of oil and gas business in GOM which adversely effected ATP.
Cause and Effect; some will argue, like T. Paul, that the cause of ATP’s financial issues was the shutdown of the GOM and they may also argue the effect was Chapter 11 for ATP, which has almost destroyed ATP and could in the end. Just me but I would think ATP and its equity holders would have a pretty strong case in defending this position and BP, Transocean and Halliburton all have very deep pockets. We have all read about the ATP litigation against BP, but no reported update on the status of this litigation.
Risk and Reward; who would continue to grant loans if they felt they would not be paid back? Would a “cash” settlement from the parties responsible for the Deepwater Horizon accident “change the game” for ATP?
Would a possible settlement of just the amount to pay the Dip Lenders be enough to warrant additional funding, I don’t think so; or would a possible settlement of three times the size of the dip loans be enough to enhance lenders to make additional loans to a company that has a record of never completing their forecasted projects on time.
The DIP Lenders have to see something on the horizon and if that something is a possible settlement for billions of dollars, they just might risk another 100 plus million to a company that may become real healthy overnight. As we watch this ATP bankruptcy through the twists and the turns wouldn’t it be something to learn of a settlement exceeding 2 billion dollars on the reported suit against BP. What do you think the value of the common, preferred and bonds might jump too. Just me, but this just might compare to winning the lottery.
So now back to reality, I have to be missing something here, if I were the Dip Lender and the only way for me to recover my loans were in the value of the ATP assets sold at auction , I would not be giving them an additional funding. I would also not be giving them any additional funds based on the unknown outcome of civil suit. So why did they give them the money????
For those that have an interest; Rigzone has some pretty good coverage of the current civil trial against BP.
Sometimes in our DD we get clues from what has been reported. I am still trying to understand why ATP management would want to shut in the Gomez field. With the filing by ATP Infrastructure Partners #1466, brings a new clue with a possible twist.
Rig Zone has reported, “The U.K. has approved Statoil ASA's field development plan for the $7 billion Mariner oil field, in the North Sea, the U.K.'s largest offshore development in more than a decade.”
Folks should get there maps out and find the Mariner field in relation to the ATP Cheviot, Skipper and Blythe fields. It might be a good idea to also look at all of ATP’s North Sea assets; Add the Cheviot assets to the Skipper and Blythe assets, maybe just maybe shutting in the US Gomez “debtor” assets and selling them off might make sense.
The “non-debtor” ATP Innovator might find a new home in the North Sea. Wasn’t it a drilling platform before being converted? And what about the future of the “non-debtor” Titan? The North Sea might be a good place for it. Of course this is all speculation on my part.
Reported by IOG on their web page, IOG is ATP’s partner in the Skipper and Blythe North Sea fields.
29th June 2011
Independent Oil & Gas Limited
Indication of a Possible Increase in Skipper Reserves
Independent Oil and Gas Ltd (“IOG”), the North Sea Oil and Gas Company, is pleased to announce that remapping work undertaken on the Company’s Skipper asset in the UK North Sea has indicated a 26% increase in the Gross Reserves from 20MMBbls to 25MMBbls.
The remapping work involved the re-interpretation of the 3D seismic over Skipper and the application of a layer-cake depth conversion. The new mapping resulted in a 50% increase in the calculated gross rock volume and has led to oil in place estimates increasing from 109MMBbls to 149MMBbls. The Skipper asset is located east of the Shetlands in Block 9/21a. It was first discovered in 1990, by well 9/21-2 drilled by Unocal.
5th April 2012
Independent Oil & Gas Limited
Studies Indicate Blythe Reserves Increase
Independent Oil and Gas Ltd (“IOG”), the North Sea Oil and Gas Company, announces that further detailed studies on the Company’s Blythe asset in the Southern North Sea have indicated a further possible increase in the reserves position. Detailed studies by ERC Equipoise in conjunction with ATP & IOG on seismic re-interpretation, re-mapping, reservoir modeling, well placement and well design have resulted in an increase in the most likely gross technically recoverable reserves from 25 bcf to 31.6 bcf.
“Alleged Contamination”, with what I have read, right or wrong, “no evidence” of illegal discharge!
Maybe T. Paul should not have sent his open letter to the Obama Administration. Maybe ATP shouldn’t have filed suit against U.S. Department of the Interior to the tune of $60 million, as ATP is seeking retribution for costs associated with a delay in the issuing of drilling permits.
Maybe just maybe someone with the Department of the Interior has a bone to pick with ATP. We all understand the government has a way of twisting arms. But we all know nothing like this is going on here! Just more bad news, so let’s kick them when they are down, they have to be the bad guys because they filed chapter 11.
And then today’s filing of “STATEMENT BY THE UNITED STATES OF AMERICA ON THE FILING OF A CIVIL ENVIRONMENTAL ENFORCEMENT ACTION” which they say;
“The United States filed the Enforcement Action because it is the environmental steward of the Outer Continental Shelf (“OCS”). See 43 U.S.C. § 1332 (stating as policy of the United States that (1) the OCS be developed “subject to environmental safeguards” and (2) operations be conducted in safe manner to prevent or minimize the likelihood of occurrences that may cause damage to the “environment or to property, or endanger life or health.”). “Environment steward” is really funny when you think the federal government is doing nothing to help South Louisiana from eroding away. This case was filed in what state; Louisiana.
And they say “2. The Enforcement Action focuses on alleged activity on the “ATP-Innovator,” owned by non-debtor entity ATP-IP.” I love the “alleged activity” and “non-debtor entity” part.
And then they say “5. As alleged in the Enforcement Action complaint, the injunctive relief measures relate to ATP Innovator’s operational practices and its piping and treatment units.” I think the government will have a problem proving that.
And they also speak of “Any judgment for penalties” in item 3 and 4. They are the government and I guess they think they have already won the case. Strange they didn’t speak of “illegal discharge”. Do you think there might be just a little malice going on here from the Department of the Interior. But we all know nothing like that going, but maybe the jury in Louisiana might think differently.
And just me, some good news!
“Nexen Inc. said early Tuesday, February 12, 2013, that the Committee on Foreign Investment in the U.S. has approved CNOOC Ltd.'s $15.1 billion acquisition of Nexen, clearing the last significant hurdle in the deal--China's biggest overseas acquisition to date.”
This I would think might open the door for more Chinese investments in US Oil and Gas Companies. Maybe Jefferies and Company should give Wang Yilin, CNOOC’s Chairman, a call. If anyone can put a deal together, Jefferies and company should be able to.
Just me, I don’t think ATP management wants a deal. I believe they have found avenues of funding conditioned on the milestones as described in Amendment 3 being completed. Any lender is going to want the borrower to demonstrate their ability to pay back the loan. Spend a few minutes and tie in the projected revenue stream as these milestones are achieved. With these revenue projections, my guess funding partners will be found. Jefferies and Company has probably helped them find lenders waiting on the sideline, time will tell.
Never the less, management maybe working on a “Plan B”, if the results of the milestones are not achieved. Remember ATP’s “non-debtor” assets.
Plan “B” might be selling off all of the assets that secure the Dip loans and bonds. From the recent filing by the unsecure creditors they appear to be willing to negotiate, but management unwilling. That is a little odd, unless you have a plan that hasn’t been disclosed as yet. I believe there is enough US asset value that secures the loans to pay off the Dip lenders plus half the bonds. I do own bonds along with preferred shares. If you have a copy of the Bond Prospectus read the sections discussing the collateral, which leads me to the UK assets in the North Sea.
What is the value of the UK assets? Some may recall the 2009 press release below; what was the price of oil then, under $50 a barrel?
“ATP Oil & Gas Corp. and its wholly-owned subsidiary ATP Oil & Gas (UK) Ltd. have closed the sale and purchase agreement for GBP 265 million (roughly US$365M) with EDF Production UK Ltd. (EDF), a subsidiary of EDF International of France, for certain of ATP’s UK assets in the North Sea. The agreement transfers 80% of ATP’s UK interest in its Tors (a 68% working interest) and Wenlock (an 80% working interest) properties to EDF. EDF has the option for a period of 60 days to acquire the remaining ATP interests on similar terms. Pending the decision by EDF for the remaining 20%, ATP UK will remain as operator of both Tors and Wenlock”.
I believe ATP’s Tors and Wenlock oil and gas holdings were half the size of Cheviot. And in November of 2012 BP reported;
BP is to raise more than $1bn through the sale of North Sea oil and gas assets to TAGA Abu Dhabi’s national energy group, bringing the UK oil group closer to its $38bn asset disposal target set following the Deepwater Horizon disaster.
Carl Sheldon, chief executive of Taqa, said that the $1.06bn deal would add 21,000 barrels of oil equivalent a day to its output and add 91m barrels to its reserve base, establishing the Abu Dhabi group “as a leading operator in the UK North Sea”. Key elements of value, daily production and reserve base. What is the reserve base, proven and probable, for Cheviot?
Even with all the bad news, I don’t believe the fat lady has yet to begin to sing.