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ATP Announces Third Quarter 2008 Results and Update

November 6, 2008

ATP Oil & Gas Corporation (NASDAQ:ATPG) today announced third quarter 2008 results and update.

Highlights include:

— Net income of $36.5 million or $1.03 per share;

— Record nine month production and revenues despite the impact of hurricanes Gustav and Ike;

— Executed an agreement to sell 80% of certain assets in the U.K. North Sea for approximately $430 million, which represents significant progress toward our previously announced monetization program;

— Continued progress on our 2008 development program including completion and first production at West Cameron 462 during early fourth quarter 2008.

Oil and gas production for the third quarter of 2008 was 2.0 MMBoe (12.2 Bcfe) compared to 2.2 MMBoe (13.3 Bcfe) for the third quarter of 2007. Production for the quarter was significantly impacted by hurricanes Gustav and Ike resulting in a deferral of production during the quarter of approximately 1.0 MMBoe (5.7 Bcfe). Despite these deferrals our quarterly production was down only 9% from the comparable quarter in 2007. Oil production was 0.8 MMBbls and natural gas production was 7.3 Bcf for the third quarter of 2008, compared to 0.9 MMBbls and 8.0 Bcfe for the third quarter of 2007. Oil and gas production increased 19% to 8.7 MMBoe (52.2 Bcfe) for the nine months ended September 30, 2008, compared to 7.3 MMBoe (43.8 Bcfe) for the nine months ended September 30, 2007.

Revenues from oil and gas production were $118.3 million for the third quarter of 2008, compared to $117.0 million for the third quarter of 2007. Revenues from oil and gas production increased 36% to $536.2 million for the nine months ended September 30, 2008, compared to $393.6 million for the nine months ended September 30, 2007.

ATP recorded net income of $36.5 million or $1.03 per basic and $1.02 per diluted share for the third quarter of 2008, compared to net income of $2.3 million or $0.08 per basic and diluted share for the third quarter of 2007. ATP recorded net income of $71.5 million or $2.02 per basic share and $1.99 per diluted share for the nine months ended September 30, 2008, compared to $35.9 million or $1.19 per basic share and $1.17 per diluted share for the nine months ended September 30, 2007. During the third quarter of 2008 ATP recognized $12.6 million of oil and gas production revenue from the amortization of deferred revenue related to the second quarter 2008 sale of a limited-term overriding royalty interest. In addition, ATP recorded $12.5 million in capitalized interest.

Results for the third quarter included items that research analysts typically exclude from their published estimates, such as unrealized gains and losses on derivatives and impairments. Net income before these items, a non-GAAP measure, in the third quarter of 2008 was $21.6 million or $0.61 per basic share and $0.60 per diluted share, compared to $4.9 million or $0.16 per basic and diluted share in the third quarter of 2007. A non-GAAP reconciliation is provided near the end of this press release.

ATP previously announced that it had entered into a sale and purchase agreement for GBP 265.0 million (approximately $430 million) with EDF Production U.K. Limited, a subsidiary of EDF International of France, for certain of ATP’s assets in the U.K. North Sea. Upon closing, the agreement will transfer 80% of ATP’s interest in Tors (a 68% working interest) and Wenlock (an 80% working interest) to EDF, effective July 1, 2008. The sale has been approved by the respective boards and parents of ATP and EDF and is subject to approval by the U.K. regulatory authority. Closing and funding of the sale is expected before the end of 2008. ATP will remain as operator of both Tors and Wenlock.

ATP’s selected operating statistics and financial information, included within this press release, contain additional information on the company’s activities for the third quarter of 2008 and the comparable period of 2007.

 Three Months Ended Nine Months Ended September 30,      September 30, ------------------ ----------------- 2008      2007     2008     2007 ------------------ ----------------- Selected Operating Statistics (Unaudited)  Production Natural gas (MMcf)                  7,267    8,021   29,080   26,271 Gulf of Mexico                    3,794    5,374   15,734   18,449 North Sea                         3,473    2,647   13,346    7,822 Oil and condensate (MBbls)            821      887    3,857    2,926 Gulf of Mexico                      817      881    3,829    2,911 North Sea                             4        6       28       15 Natural gas equivalents (MMcfe)    12,190   13,343   52,219   43,830 Gulf of Mexico                    8,693   10,661   38,707   35,913 North Sea                         3,497    2,682   13,512    7,917  Average Prices (includes effect of cash flow hedges) Natural gas (per Mcf)            $   7.32 $   7.25 $   8.20 $   8.28 Gulf of Mexico                     9.39     7.63     9.55     8.22 North Sea                          5.06     6.49     6.60     8.42 Oil and condensate (per Bbl)        64.01    66.30    72.18    60.15 Natural gas, oil and condensate (per Mcfe)                          8.67     8.77     9.90     8.98  Other Expenses, per Mcfe Lease operating expense          $   2.03 $   1.59 $   1.40 $   1.42 Gulf of Mexico                     2.20     1.69     1.41     1.39 North Sea                          1.61     1.17     1.36     1.57 Depreciation, depletion and amortization                        4.33     4.02     4.25     3.64 Gulf of Mexico                     3.51     3.71     3.53     3.44 North Sea                          6.38     5.25     6.33     4.57  Selected Financial Data (Unaudited) (In Thousands, Except Per Share Data)  Oil and gas revenues (1)           $118,347 $116,738 $536,193 $393,640 Net income                           36,483    2,321   71,548   35,880  Net income per share: Basic                            $   1.03 $   0.08 $   2.02 $   1.19 ================== ================= Diluted                          $   1.02 $   0.08 $   1.99     1.17 ================== =================  Weighted average shares outstanding: Basic                              35,452   30,118   35,441   30,060 ================== ================= Diluted                            35,815   30,771   35,871   30,669 ================== =================  (1) Includes settlements on derivatives qualifying for hedge accounting. Additionally, the 2008 periods reflect oil and gas production revenues from amortization of deferred revenue related to the sale of a limited-term overriding royalty interest during the second quarter of 2008. 

3rd Quarter 2008 Conference Call

ATP Oil & Gas Corporation (NASDAQ: ATPG) will host a conference call on Thursday, November 6 at 10:30 am central time to discuss the company’s third quarter results, followed by a Q&A session.

 Date: Thursday, November 6, 2008 Time: 11:30 am ET; 10:30 am CT; 9:30 am MT and 8:30 am PT 

ATP invites interested persons to listen to the live Internet webcast on the company’s website, www.atpog.com, linking through the Investor Info page and the Conference Calls link. Phone participants should dial (888) 812-8594. A digital replay of the conference call will be available at (888) 203-1112, ID# 9742913, for a period of 24 hours beginning at 12:30 pm CT, and the webcast will be archived for 30 business days at www.atpog.com.

About ATP Oil & Gas Corporation

ATP Oil & Gas is focused on development and production of oil and natural gas in the Gulf of Mexico and the North Sea. The Company trades publicly as ATPG on the NASDAQ Global Select Market. For more information about ATP Oil & Gas Corporation, visit www.atpog.com.

Forward-looking Statements

Certain statements included in this news release are “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. ATP cautions that assumptions, expectations, projections, intentions, or beliefs about future events may, and often do, vary from actual results and the differences can be material. Some of the key factors which could cause actual results to vary from those ATP expects include changes in natural gas and oil prices, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as ATP’s ability to access them, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting our business. More information about the risks and uncertainties relating to ATP’s forward-looking statements are found in the Company’s SEC filings.

 CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)  September 30, December 31, 2008          2007 ------------- ------------ Assets Current assets: Cash and cash equivalents                   $  178,358   $  199,449 Restricted cash                                      -       13,981 Accounts receivable (net of allowances of $358 and $382)                                 44,460      127,891 Deferred tax assets                             45,049       84,110 Derivative assets                                1,409        1,286 Other current assets                            12,582       15,934 ------------- ------------ Total current assets                         281,858      442,651 ------------- ------------  Oil and gas properties: Oil and gas properties (using the successful efforts method of accounting)    3,167,919    2,556,938 Less: Accumulated depletion, impairment and amortization                             (931,092)    (726,358) ------------- ------------ Oil and gas properties, net                2,236,827    1,830,580 ------------- ------------  Furniture and fixtures, net                          589          860 Derivative assets                                    431          673 Deferred tax assets                               19,841            - Deferred financing costs, net                     14,504       19,873 Other assets, net                                 17,741       12,496 ------------- ------------ Total assets                              $2,571,791   $2,307,133 ============= ============  Liabilities and Shareholders' Equity  Current liabilities: Accounts payable and accruals               $  220,317   $  270,557 Current maturities of long-term debt            10,500       12,165 Asset retirement obligation                     19,075       28,194 Derivative liabilities                          32,659       11,335 Other current liabilities                       14,164       23,512 ------------- ------------ Total current liabilities                    296,715      345,763  Long-term debt                                 1,598,392    1,391,846 Asset retirement obligation                      167,778      158,577 Deferred tax liabilities                          83,814       85,256 Derivative Liabilities                            12,185       13,242 Deferred revenue                                  62,549            - Other liabilities                                  2,582        2,583 ------------- ------------ Total liabilities                          2,224,015    1,997,267 ------------- ------------  Shareholders' equity: Preferred stock: $0.001 par value                    -            - Common stock: $0.001 par value                      36           36 Additional paid-in capital                     397,354      388,250 Accumulated deficit                            (20,513)     (92,061) Accumulated other comprehensive income         (28,190)      14,552 Treasury stock, at cost                           (911)        (911) ------------- ------------ Total shareholders' equity                   347,776      309,866 ------------- ------------ Total liabilities and shareholders' equity                                   $2,571,791   $2,307,133 ============= ============  

 CONSOLIDATED INCOME STATEMENTS (In Thousands, Except Per Share Amounts) (Unaudited)  Three Months Ended   Nine Months Ended September 30,       September 30, ------------------- -------------------- 2008      2007       2008      2007 --------- --------- ---------- ---------  Oil and gas revenues          $118,347  $116,738  $ 536,193  $393,640 Other revenues                       -         -        897     1,598 --------- --------- ---------- --------- Total revenues             118,347   116,738    537,090   395,238 --------- --------- ---------- ---------  Costs and operating expenses: Lease operating               24,723    21,152     73,111    62,326 Exploration                       48     1,799         48    13,135 General and administrative     9,212     7,610     27,279    22,950 Depreciation, depletion and amortization                 52,825    53,617    222,097   159,629 Impairment of oil and gas properties                        -     4,028          -     9,798 Accretion of asset retirement obligation         4,211     3,039     12,792     9,019 Loss on abandonment              896       300      2,309       379 Other, net                      (149)   (1,785)      (259)   (1,785) --------- --------- ---------- --------- Total costs and operating expenses                   91,766    89,760    337,377   275,451 --------- --------- ---------- --------- Income from operations          26,581    26,978    199,713   119,787 --------- --------- ---------- ---------  Other income (expense): Interest income                1,079     1,329      2,951     5,947 Interest expense             (26,606)  (29,717)   (78,969)  (87,541) Derivatives income (expense)                    40,963       284     (9,187)      284 Loss on debt extinguishment        -         -    (24,220)        - --------- --------- ---------- --------- Total other income (expense)                  15,436   (28,104)  (109,425)  (81,310) --------- --------- ---------- ---------  Income (loss) before income taxes                          42,017    (1,126)    90,288    38,477 --------- --------- ---------- --------- Income tax (expense) benefit: Current                        6,710     1,566     (3,648)    1,532 Deferred                     (12,244)    1,881    (15,092)   (4,129) --------- --------- ---------- --------- Total                       (5,534)    3,447    (18,740)   (2,597) --------- --------- ---------- ---------  Net income                    $ 36,483  $  2,321  $  71,548  $ 35,880 ========= ========= ========== =========  Net income per share: Basic                       $   1.03  $   0.08  $    2.02  $   1.19 ========= ========= ========== ========= Diluted                     $   1.02  $   0.08  $    1.99  $   1.17 ========= ========= ========== =========  Weighted average shares outstanding: Basic                         35,452    30,118     35,441    30,060 ========= ========= ========== ========= Diluted                       35,815    30,771     35,871    30,669 ========= ========= ========== =========  

 CONSOLIDATED CASH FLOW DATA (In Thousands) (Unaudited)  Nine Months Ended September 30, ----------------------- 2008        2007 ------------ ---------- Cash flows from operating activities: Net income                                   $    71,548  $  35,880 Adjustments to operating activities              292,852    204,801 Changes in assets and liabilities               (111,052)    (2,930) ------------ ---------- Net cash provided by operating activities          253,348    237,751 ------------ ----------  Cash flows from investing activities: Additions to oil and gas properties             (544,176)  (636,597) Additions to furniture and fixtures                 (129)      (296) Proceeds from disposition of oil and gas properties                                       82,644          - Decrease in restricted cash                       13,864     14,096 ------------ ---------- Net cash used in investing activities             (447,797)  (622,797) ------------ ----------  Cash flows from financing activities: Proceeds from long-term debt                   1,608,750    574,500 Principal payments of long-term debt          (1,404,278)  (184,552) Deferred financing costs                         (15,523)   (13,449) Principal payments of capital lease                    -    (23,950) Net profits interest payments                    (13,602)         - Exercise of stock options                             33      2,004 ------------ ---------- Net cash provided by financing activities          175,380    354,553 ------------ ----------  Effect of exchange rate changes on cash             (2,022)       882 ------------ ----------  Net decrease in cash and cash equivalents          (21,091)   (29,611) Cash and cash equivalents, beginning of period     199,449    182,592 ------------ ----------  Cash and cash equivalents, end of period       $   178,358  $ 152,981 ============ ==========  

 Reconciliation of Non-GAAP Net Income (In Thousands, Except Per Share Amounts) (Unaudited)  Three Months Ended Nine Months Ended September 30,      September 30, ------------------ ----------------- 2008     2007     2008     2007 ---------- ------- --------- -------  Net income                         $ 36,483  $ 2,321   $71,548 $35,880 Adjustments to net income, net of tax: Impairment of oil and gas properties                             -    2,618         -   6,369 Loss on debt extinguishment             -        -    15,743       - Unrealized derivatives (income) expense                          (14,868)       -    11,958       - ---------- ------- --------- ------- Pro forma net income               $ 21,615  $ 4,939   $99,249 $42,249 ========== ======= ========= =======  Pro forma net income per share: Basic                          $   0.61  $  0.16   $  2.80 $  1.41 ========== ======= ========= ======= Diluted                        $   0.60  $  0.16   $  2.77 $  1.38 ========== ======= ========= =======  Weighted average shares outstanding: Basic                            35,452   30,118    35,441  30,060 ========== ======= ========= ======= Diluted                          35,815   30,771    35,871  30,669 ========== ======= ========= =======  

 2008                     2009 ------------- ----------------------------------- 4Q     FY     1Q     2Q     3Q     4Q      FY ------------- ----------------------------------- Gulf of Mexico Fixed Forwards & Swaps Natural Gas Volumes (MMMBtu)       3,055  3,055  2,700  1,815  1,830  1,830   8,175 Price ($/MMBtu)     $ 8.62 $ 8.62 $ 8.63 $ 7.56 $ 7.57 $ 8.10 $  8.04 Crude Oil Volumes (MBbls)          982    982    788    705    713    621   2,827 Price ($/Bbl)  $79.50 $79.50 $78.61 $75.83 $75.83 $76.61 $ 76.78 Equivalents Volumes (MMMBtue)      8,947  8,947  7,425  6,047  6,108  5,556  25,136 Price ($/MMBtue)    $11.67 $11.67 $11.48 $11.12 $11.12 $11.23 $ 11.25  Puts Crude Oil Volumes (MBbls)          626    626    369    373    377    377   1,497 Floor Price ($/Bbl)       $54.67 $54.67 $54.00 $54.00 $54.00 $54.00 $ 54.00  North Sea Fixed Forwards & Swaps Natural Gas Volumes (MMMBtu)       4,370  4,370  3,668  1,843  1,863  1,219   8,592 Price ($/MMBtu)     $ 7.78 $ 7.78 $ 7.63 $ 7.94 $ 7.94 $ 7.66 $  7.77  ---------------------------------------------------------------------- Exchange rate = 1.82 USD/GBP as of September 30,2008 The above are ATP's outstanding financial and physical commodity contracts. Additional hedges, derivatives and fixed price contracts, if any, will be announced during the year. ----------------------------------------------------------------------  

 2010 ---------------------------------- 1Q     2Q     3Q     4Q     FY ---------------------------------- Gulf of Mexico Fixed Forwards & Swaps Natural Gas Volumes (MMMBtu)                   -      -      -      -      - Price ($/MMBtu)               $    - $    - $    - $    - $    - Crude Oil Volumes (MBbls)                   90     91     92     92    365 Price ($/Bbl)                 $68.20 $68.20 $68.20 $68.20 $68.20 Equivalents Volumes (MMMBtue)                540    546    552    552  2,190 Price ($/MMBtue)              $11.37 $11.37 $11.37 $11.37 $11.37  Puts Crude Oil Volumes (MBbls)                    -      -      -      -      - Floor Price ($/Bbl)           $    - $    - $    - $    - $    -  North Sea Fixed Forwards & Swaps Natural Gas Volumes (MMMBtu)                 450      -      -      -    450 Price ($/MMBtu)               $ 8.46 $    - $    - $    - $ 8.46  ----------------------------------------------------------------------  2011 ------------------------------- 1Q     2Q     3Q  4Q     FY ------------------------------- Gulf of Mexico Fixed Forwards & Swaps Natural Gas Volumes (MMMBtu)                      -      -      -   -      - Price ($/MMBtu)                  $    - $    - $    -  $- $    - Crude Oil Volumes (MBbls)                      90     91     92   -    273 Price ($/Bbl)                    $68.20 $68.20 $68.20  $- $68.20 Equivalents Volumes (MMMBtue)                   540    546    552   -  1,638 Price ($/MMBtue)                 $11.37 $11.37 $11.37  $- $11.37  Puts Crude Oil Volumes (MBbls)                       -      -      -   -      - Floor Price ($/Bbl)              $    - $    - $    -  $- $    -  North Sea Fixed Forwards & Swaps Natural Gas Volumes (MMMBtu)                      -      -      -   -      - Price ($/MMBtu)                  $    - $    - $    -  $- $    -  ----------------------------------------------------------------------  Exchange rate = 1.82 USD/GBP as of September 30,2008 The above are ATP's outstanding financial and physical commodity contracts. Additional hedges, derivatives and fixed price contracts, if any, will be announced during the year. ----------------------------------------------------------------------  




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