ATP Oil & Gas files for bankruptcy protection

AP News
Posted: Aug 20, 2012 12:52 PM
ATP Oil & Gas files for bankruptcy protection

HOUSTON (AP) — ATP Oil & Gas has filed for Chapter 11 bankruptcy protection, blaming costs and drilling cuts stemming from the 2010 Gulf Coast oil spill.

The small Houston-based oil and gas producer filed Friday in the U.S. bankruptcy Court for the Southern District of Texas. It says it expects business at its oil and gas operations to continue as usual while it restructures.

The company says its lenders have agreed to provide $617.6 million in debtor-in-possession financing that will fund its operations while it restructures.

ATP says that the shutdown of drilling activities in the Gulf of Mexico following the explosion and massive spill at a BP PLC well kept it from bringing to production six development wells that would have significantly boosted its production. Three of those wells have still yet to be drilled.