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ATP Oil & Gas Corporation

A. T. P. Oil & Gas Corporation. ATP Oil & Gas Corporation. NYSSA 2 nd Annual Oil Exploration Industry Conference November 21, 2002 NASDAQ: ATPG. A. T. P. Forward-looking Statement. Oil & Gas Corporation.

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ATP Oil & Gas Corporation

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  1. A T P Oil & Gas Corporation ATP Oil & Gas Corporation NYSSA 2nd Annual Oil Exploration Industry Conference November 21, 2002 NASDAQ: ATPG

  2. A T P Forward-looking Statement Oil & Gas Corporation This presentation contains projections and other forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These projections and statements reflect the Company’s current view with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that these projections will be achieved, and actual results could differ materially from those projected as a result of certain factors. A discussion of these factors is included in the Company documents filed with the Securities and Exchange Commission. This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, or the solicitation of a proxy or an attempt to influence any voting of securities, by any person.

  3. A T P Oil & Gas Corporation Area of Operations Over 50 blocks in Gulf of Mexico 7 blocks in North Sea

  4. A T P Oil & Gas Corporation SMI 189/190 Company Overview • Development and production company • Offshore solution • provider for exploration • oriented majors and • independents • Unique, repeatable strategy

  5. For ATP For the Sellers Eliminates future capital risk Eliminates exploration risk Reduces acquisition & development costs Allows them to recover some sunk costs Shortens duration of risked capital Diverts capital to other core projects A T P Our D&P Strategy Works Oil & Gas Corporation

  6. ATP awarded UKCS Blocks by DTI in a rare Out- of-Round license ATP completes its first sub-sea development ATP incorporated on August 8th 2002 1991 1995 1997 1998 ATP acquires all Statoil’s properties on the Outer-Continental Shelf ATP is one of the first companies to utilize horizontal drilling offshore A T P Company History Oil & Gas Corporation ATP was founded in 1991 and completed an initial public offering in February 2001

  7. A T P Oil & Gas Corporation Company Profile • Production: • 2001 Actual: 25.7 Bcfe • 2002 Guidance: 26.5 Bcfe • Actual Through 9/30/02: 21.4 Bcfe • Proven reserves 2001: 235 Bcfe • 3-year reserve replacement: 374% • 3-year F&D costs: $0.96/Mcfe

  8. A T P Recent Focus Oil & Gas Corporation • Increasing financial flexibility • Reduced bank debt $14 million in 2002 • Increased working capital $30 million in 2002 • Discretionary cash flow increased from $4 to $48 million (‘97-’01) • Profitable in second and third quarter 2002 • Exceeding operating goals • Beat first, second, and third quarter production guidance • Developing North Sea reserves • Pipeline installed and well drilling at Helvellyn • First production in 2003

  9. A T P Oil & Gas Corporation 2002 Development Activity Gulf of Mexico ATP is moving 32 Bcfe from non-producing to proven developed producing properties (PDP) for less than $20 million

  10. 3Q02 Production and Development Highlights A T P Oil & Gas Corporation • 3Q02 Production 6.536 Bcfe • an increase over the same period in 2001 • an increase over previously announced production guidance of 6.500 Bcfe. ATP achieved this production increase in spite of curtailments due to Hurricanes Isidore and Lili. • 2002 YTD Production 21.5 Bcfe • an increase of 16% over the same period in 2001 • a company record for first nine months production • 2002 YTD Development • 25 Bcfe moved to PDP • Larger PDP component of reserves at 9/30/02 than 12/31/01

  11. A T P Near Term 2002 Development Oil & Gas Corporation • Q3 Activity • Recompletion of EC 240, SM 7 and WC 462 • Production to contribute in 4Q02 • Q4 Developmentof 7 projects • 3 Drilling: EI 71, WC 101, WC 284 • 4 recompletions and stimulations • Production to contribute in 1Q 03 Production on schedule for the 7th consecutive year of increase

  12. 4th Quarter 2002 Development Operations A T P Oil & Gas Corporation WC 101 WC 284 EI 71

  13. A T P West Cameron 101 Oil & Gas Corporation Water Depth: 43’ Working Interest: 100% Net Revenue Interest: 73.33% Platform/Wells: One well caisson. Producing Sands: Miocene Marg A 53 thru 55 Sands at 13,000’ TVD Current Status: Caisson waiting on completion Location: Offset Mobil L-2 well -555 MBO 2 BCFG Superior C-3, C-7 wells also prod. 53 and 55 sands.

  14. West Cameron 101 #2 Log A T P Oil & Gas Corporation

  15. A T P Oil & Gas Corporation Future developments Future Development (2003 – 2005) 100% of properties ATP operated

  16. North Sea Developments A T P Oil & Gas Corporation

  17. A T P Oil & Gas Corporation Southern Gas Basin of North Sea The Tors Helvellyn Venture 2002 Out of Round Award

  18. A T P Helvellyn Oil & Gas Corporation Water Depth: 90’ Working Interest: 50% Net Revenue Interest: 50% Platform/Wells: Subsea First Production: Projected 2003 Producing Sands: Rotliegend/Carboniferous First well drilled: 1985 First well tested: 47/10-1 well tested at 29.4 MMcfepd Current Status: Well drilling at 10,000 +/- feet (measured depth) Target depth 14,270 feet

  19. Helvellyn Development A T P Oil & Gas Corporation Development 2002 Projected production 2003

  20. Helvellyn Development August 2002 Pipeline Lay A T P Oil & Gas Corporation

  21. Helvellyn Development Wellhead Protection Structure A T P Oil & Gas Corporation Well Spudded September 8, 2002

  22. Venture A T P Oil & Gas Corporation Development 2003 Projected production 2004

  23. The Tors 1 - Garrow A T P Oil & Gas Corporation Development 2004 Projected production 2005

  24. The Tors 2 - Kilmar A T P Oil & Gas Corporation Development 2004 Projected production 2005

  25. A T P Oil & Gas Corporation Third Quarter 2002 Financial Overview

  26. Debt Reduction Program A T P Oil & Gas Corporation ($ in millions)

  27. First Nine Months 2002 Liquidity Improvement A T P Oil & Gas Corporation Working Capital Increased $30 million + Bank and Subordinated DebtDecreased $12 million = Overall Capital Liquidity Improvement $42 million

  28. 2002 Operating Performance A T P Oil & Gas Corporation ($ in millions) Gross Margin 82% YTD ‘02 Note: Revenues reflect the effects of settled hedging activity

  29. Financial Strength A T P Oil & Gas Corporation • Bank & subordinated debt/proven reserves(1) $0.40 / Mcfe • LTM EBITDA / Interest Expense 6.6x • Bank & subordinated debt / LTM EBITDA 1.5x • YTD 3Q02 Discretionary cash flow $42 million • At September 30, 2002

  30. A T P Oil & Gas Corporation Why Should ATP Be In Your Portfolio? • Comparable to larger offshore operators

  31. A T P Oil & Gas Corporation Our Peers

  32. A T P Why Should ATP Be In Your Portfolio? Oil & Gas Corporation • Comparable to larger offshore operators • Attractive valuation

  33. Attractive Valuation P/CFPS significantly below peers A T P Oil & Gas Corporation

  34. Attractive Valuation EV trades at a discount to NAV A T P Oil & Gas Corporation Note: Debt as of 9/30/02; share price as of 11/8/02

  35. A T P Oil & Gas Corporation Why Should ATP Be In Your Portfolio? • Comparable to larger offshore operators • Attractive valuation • Efficient offshore operator

  36. A T P Oil & Gas Corporation Efficient Offshore Operator Lowest production costs in the group

  37. A T P Why Should ATP Be In Your Portfolio? Oil & Gas Corporation • Comparable to larger offshore operators • Attractive valuation • Efficient offshore operator • Rate of return focused

  38. Rate of Return Focused 3-year F&D costs under $1/Mcf A T P Oil & Gas Corporation

  39. Rate of Return Focused Capital Efficiency A T P Oil & Gas Corporation (1) Dollars Invested vs. EBITDA Returned 300% 250% 200% 150% 100% 50% 0% NFX EPL Median PQUE ATPG REM (1) 3Q02 EBITDA per unit of production divided by 3 yr. ('99-'01) F&D costs.

  40. A T P Oil & Gas Corporation Why Should ATP Be In Your Portfolio? • Comparable to larger offshore operators • Attractive valuation • Efficient offshore operator • Rate of return focused • History of producing results

  41. History of Producing Results 6 years of cash flow and revenue growth A T P Oil & Gas Corporation Discretionary Cash Flow Revenue ($ in millions)

  42. History of Producing Results 6 years of production and reserve growth A T P Oil & Gas Corporation OIL GAS Production (BCFE) Proven Reserves (BCFE)

  43. A T P ATP Oil & Gas Corporation Oil & Gas Corporation NASDAQ: ATPG ATP Oil & Gas Corporation4600 Post Oak Place, Suite 200Houston, TX 77027-9726713-622-3311 ATP Oil & Gas (UK) Limited Victoria House, London Square, Cross Lanes Guildford, Surrey GU1 1UJ United Kingdom 44 (0) 1483 307200 www.atpog.com

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