Replies to post #865 on ATP Oil & Gas Corp fka ATPAQ

[Timothy Smith]

Haha fair enough! I can see your rational the area is some volatile in the first place I would be hesitant to even to venture into it due to any number of obstacles but ATGP management among others seem to know what they are doing.

[Timothy Smith]

DD regarding the Shimshon well

The white knight for ATP Oil & Gas shareholders could turn out to be the company's deepwater interests off the coast of Israel in the Levant Basin. Preliminary estimates signal that the Shimshon well possesses between 2.5 trillion cubic feet to 3.4 TCF of natural gas. That's a potential game-changer for ATP, which has struggled to grow its production.

Two particular aspects of this find make it particularly notable (beyond the fact that we're talking about 3 TCF of natural gas). First, European and Asian demand for natural gas is high, and so are prices for the cleaner-energy resource. U.S. prices for natural gas may be near decade lows, but that's not the case across the water. Higher prices should mean considerably better cash flow for ATP.

Secondly, Noble Energy's (NYSE: NBL ) success in the region bodes well for ATP's prospects. Noble Energy had previously been the only other foreign company with the rights to drill off of Israel, so this could be a detriment to them. However, with claims to approximately 20 TCF of natural gas according to estimates, I don't think Noble shareholders will be crying the blues.