BP Underestimated Atlantis Discovery

BP disclosed updated reserves figures for its Atlantis discovery in the Southern Green Canyon region of the Gulf of Mexico. Based on data from additional appraisal drilling in the field, Atlantis is now believed to have reserves 575 million barrels of oil equivalent (boe), making it the third largest field discovered in the Gulf. BP's Thunder Horse field is the Gulf's largest oil and gas find. The company's initial estimates of Atlantis reserves were closer to three hundred million barrels. "The updated reserve numbers reinforce the significance of our Atlantis discovery. It is a world-class find and another outstanding field in BP's deepwater inventory. The Gulf of Mexico Deepwater continues to grow as one of the most important growth basins in the world," said Dick Olver, BP Managing Director and Chief Executive, Exploration and Production. The company also announced today that it had approved additional financial expenditures that will allow the company to move forward with Atlantis field development engineering and the procurement of long lead-time items. Atlantis is expected to use a moored semi-submersible production facility. The field will also have a separate dedicated semi-submersible drilling unit. BP's share of Atlantis development costs will exceed one billion dollars with production scheduled to begin in 2005. BHP Billiton has a 44 percent ownership stake in Atlantis. The new well data was obtained through an appraisal well drilled by the Glomar Explorer in the fall of 2001. It was the second appraisal well drilled at Atlantis. In 2000, partner BHP Billiton commissioned the C.R. Luigs to drill an appraisal well in the field. BP drilled the Atlantis discovery well in 1998, using the semi-submersible rig Ocean America. Atlantis is located approximately 125 miles south of New Orleans in the vicinity of Green Canyon Block 743 in approximately 6,500 feet of water. The Atlantis field covers six blocks. Atlantis is one of three BP operated properties under development in the Southern Green Canyon Region. Holstein, sanctioned in May 2001, and Mad Dog, sanctioned in December 2001, are also in development. Together, the three fields account for more than 1 billion barrels (gross) Visit to

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