Oil and gas exploration companies have begun considering acquiring the rights to the Shimshon and East and West Daniel licenses of ATP Oil & Gas Corporation (Bulletin Board: ATPAQ). Sources inform ''Globes'' that companies have approached ATP creditors to consider lifting the foreclosure placed on rights held by ATP subsidiary ATP East Med Number BV. The creditors who obtained the foreclosure estimate that ATP East Med owes them $6 million.
Earlier this week, the Tel Aviv District Court seized the 35% rights of ATP East Med to the Shishmon and East and West Daniel offshore licenses, after ATP filed for Chapter 11 bankruptcy protection with a Texas court. ATP East Med's assets were not protected from seizure under US bankruptcy laws.
The seizure was made at the request of two Dutch companies, subsidiaries of Texas-based Frank's International Inc., equipment and materials suppliers for the Shimshon exploratory well during the first half of 2012, who claim that ATP East Med has not paid them. The well is due to verify the results of the seismic survey of the Shimshon license, which found 2.3 trillion cubic feet of natural gas with a 20% geological probability of success.
Until the foreclosure is lifted, the rights to the licenses cannot be transferred to another party.
ATP's partner in the licenses is Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) and its affiliates, which own 50% of the Shimshon license, after selling 10% of the license to Modiin Energy LP (TASE:MDIN.L) today, and 60% of the East and West Daniel licenses.
Published by Globes [online], Israel business news - www.globes-online.com - on September 6, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012