1123647--3/15/2006--ATP_OIL_&_GAS

related topics

{gas, price, oil}

{debt, indebtedness, cash}

{loss, insurance, financial}

{operation, natural, condition}

{loan, real, estate}

{cost, regulation, environmental}

{operation, international, foreign}

{stock, price, operating}

{personnel, key, retain}

{product, market, service}

{tax, income, asset}

Our actual development results are likely to differ from our estimates of our proved reserves. We may experience production that is less than estimated and development costs that are greater than estimated in our reserve reports. Such differences may be material. Delays in the development of or production curtailment at our material properties may adversely affect our financial position and results of operations. The unavailability or increased cost of drilling rigs, equipment, supplies, personnel and oilfield services could adversely affect our ability to execute on a timely basis our development plans within our budget. If we are not able to generate sufficient funds from our operations and other financing sources, we may not be able to finance our planned development activity, acquisitions or service our debt. Our debt instruments impose restrictions on us that may affect our ability to successfully operate our business. We have debt, trade payables, preferred stock and related interest and dividend payment requirements that may restrict our future operations and impair our ability to meet our obligations. Our Gulf of Mexico properties are subject to rapid production declines. Therefore, we are required to replace our reserves at a faster rate than companies whose onshore reserves have longer production periods. We may not be able to identify or complete the acquisition of properties with sufficient proved reserves to implement our business strategy. Oil and natural gas prices are volatile, and low prices have had in the past and could have in the future a material adverse impact on our business. Our price risk management decisions may reduce our potential gains from increases in commodity prices and may result in losses. We may incur substantial impairment write-downs. The oil and natural gas business involves many uncertainties and operating risks that can prevent us from realizing profits and can cause substantial losses. Terrorist attacks or similar hostilities may adversely impact our results of operations. Our insurance coverage may not be sufficient to cover some liabilities or losses that we may incur. We may be unable to identify liabilities associated with the properties that we acquire or obtain protection from sellers against them. Competition in our industry is intense, and we are smaller and have a more limited operating history than some of our competitors in the Gulf of Mexico and in the North Sea. We may suffer losses as a result of foreign currency fluctuations. Our success depends on our management team and other key personnel, the loss of any of whom could disrupt our business operations. Rapid growth may place significant demands on our resources. We are subject to complex laws and regulations, including environmental regulations that can adversely affect the cost, manner or feasibility of doing business. Members of our management team own a significant amount of common stock, giving them influence or control in corporate transactions and other matters, and the interests of these individuals could differ from those of other shareholders.

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1123647--3/15/2006--ATP_OIL_&_GAS_CORP