ATP Oil & Gas (ATPG) Gets Boost from Shimshon Well Production Update

July 30, 2012 12:39 PM EDT
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ATP Oil & Gas (Nasdaq: ATPG) has been on a wild ride over the last two sessions.

Last Friday, shares were hit following reports that bondholders might seek further action in an event the company isn't able to make interest payments on outstanding debt. ATP ended up closing 28 percent lower.

Today, reports from Bloomberg have the energy company higher when partner Isramco Negev 2 LP reported flow rates for the Shimshon well offshore Israel. Isramco holds a 39 percent stake in Shimshon while ATP holds 40 percent. Isramco said Shimshon was flowing at 40.2 million cubic feet per day following a 54-hour test.

Overall, testing at Shimshon lasted 35 days. According to Israels Globes news source, production tests produced 39.08 million cubic feet of nat gas with 9.3 barrels of condensate. Flow rate from the 35-day tests averaged 22.7 million cubic feet per day.

On July 1st, Isramco said the well might hold 2.3 trillion cubic feet of natural gas.

Investors are grasping for any good news on ATP. Shares have fallen as much as 91 percent from annual highs above $15 hit one-year ago. Shares are up 17 percent on the session to about $1.64, though still down 31 cents from a close at $1.95 last Thursday.

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