ATP Oil & Gas Corp fka ATPAQ

[Timothy Smith]

More DD regarding Gulf of Mexico drilling demand and Clipper development

Even with properties in the North Sea and hope abounding off the coast of Israel, it should be noted that a vast majority of ATP's revenue still is tied to production in the Gulf of Mexico. It's therefore imperative that drilling demand remains strong and that it continues to find ways to boost production in the region.

The big news for investors here is that ATP expects its two wells in the Clipper Field region of the Gulf to be operational by either later in the third quarter or early in the fourth quarter. The two wells are expected to add an additional 22,000 barrels of oil equivalent per day according to Foolish energy sector savant Isac Simon. That represents an 89% increase over ATP's production levels in 2011 and will tie its two wells directly into Murphy Oil's (NYSE: MUR ) Front Runner production facility.

Prior to Clipper, ATP has faced a world of problems. The Deepwater Horizon disaster and subsequent spill in 2010 placed a temporary moratorium on drilling from which ATP still hasn't fully recovered. On the other hand, deepwater driller Ensco (NYSE: ESV ) is back to operating at near full capacity in the Gulf, and Cobalt International Energy (NYSE: CIE ) is planning to drill three additional wells in the Gulf on top of the one it's working on now. Things are progressing quickly for ATP's peers, but not for ATP itself.