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Jbay76 (< 20)

ATPG on a rise..but why?

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September 27, 2010 – Comments (7) | RELATED TICKERS: ATPAQ

Right around the BP oilspill, I purchased sharesof ATPG as part of the ten doubles challenge.  And, as one would imagaine, those shares tanked a bit, but today they are on a rise. In investigating the source/cause of such rise, I am left with the conclusion that this rise may be due to the fact that ATPG is making their Titan platform into a limited liability corporation owned entirely by ATPG.  Oil and all energy commodities are down today, so assuming this rise in price is somewhat based on reality/rational thinking (I know I have extended myself a bit here), this is the only basis I can find for this rise.  It seems logical that by converting one of your better floating drilling platforms into an LLC, you as a company protect yourself from a BP disaster as you remove responsibility of a disaster away from yourself and leave it solely on your drilling paltform, which could file for bankruptcy after a drilling disaster occurs.  By filign for bankruptc, the drilling platform LLC does not have to pay reparations and the main company is unscathed.   All this seems logical to me, but since I am new to this industry and the legalites associated with it, I was wondering if my logic is correct.  Any other insights?

 

Here's the link:

http://www.businesswire.com/news/home/20100927005989/en/Rodman-Renshaw-LLC-Serves-Advisor-ATP-Monetizing 

 

Thanks 

7 Comments – Post Your Own

#1) On September 27, 2010 at 2:34 PM, Jbay76 (< 20) wrote:

Sorry, the link didn't come out right

http://www.businesswire.com/news/home/20100927005989/

en/Rodman-Renshaw-LLC-Serves-Advisor-ATP-Monetizing 

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#2) On September 27, 2010 at 3:14 PM, walt373 (99.76) wrote:

seems like a good idea - why doesn't every oil company just do that?

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#3) On September 27, 2010 at 3:19 PM, SockMarket (62.35) wrote:

I doubt it would stand up in court. There have been several cases where the owner of an LLC has been found to bear full financial responsability for the LLC's actions and I suspect this would be one if it came up in court.

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#4) On September 27, 2010 at 3:41 PM, Jbay76 (< 20) wrote:

Walt373...good question.  Maybe previous cases mentioned by Sockmarket are the reason why?  ATPG drills in the North Sea and the GoM,  both of which have their share of rough seas, though I suspect the North Sea can be more treacherous.  

I did come across a website where one of the 6 reasons behind an increase in share price is the financing of the LLC conversion for the Titan.  But I still can't figure out what benefit that brings if SockMarket is right...........

 

So, a last thought...has the fear of deepwater drilling subsided yet? 

 

In any case, here's a link for interested people:

http://seekingalpha.com/author/devon-shire/

comments/symbol/atpg

 

Sorry, still trying to figure out how to embed links in the blog 

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#5) On September 27, 2010 at 5:56 PM, portefeuille (99.44) wrote:

see this article written by swizzled.

ATP Oil and Gas – Monetizes the ATP Titan, Now for the First Time Appears Fully Funded For Huge Production Growth

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#6) On September 27, 2010 at 5:59 PM, portefeuille (99.44) wrote:

http://seekingalpha.com/author/devon-shire/comments/symbol/atpg

Those are also by swizzled.

also see the ATPG "board".

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#7) On September 29, 2010 at 11:34 AM, tflo07 (56.71) wrote:

While ATPG has jumped over 10% in all seriousness, it should expand far further. The White House is getting Ken Salazaars report on the progress of the moratorium next week. Most news suggests this will lead to an early end to the gulf oil moratorium. ATPG seems to focus on safety as more than just something to put on a banner on it's website which means their  rigs should be among the first permitted.

The monetization of Titan and the new reserves at Appomattox will seriously aid money flow easing fears of liquidity

http://www.gurufocus.com/news.php?id=108263

http://www.reuters.com/finance/stocks/keyDevelopments?rpc=66&symbol=ATPG.O&timestamp=20100927110000

 Their high tech Octobouy platform is almost 80% complete in China.

 This combined with a calender full of well start dates in the near future suggests a fairly rapid expansion for a small company

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