Thursday, May 27, 2010

ATP Oil & Gas (Nasdaq:ATPG) Down on Obama Drilling Ban

ATP Oil & Gas (Nasdaq:ATPG) is being crushed today on the news of Obama stopping drilling operations at 33 deep-water rigs in the Gulf of Mexico.

The stock finished down by almost 4 percent, to $12.05, a 49 cent decline.

Obama has also halted the sale of leases in the Gulf of Mexico, obviously a move of political expediency.

Natixis Bleichroeder analyst, Curtis Trimble, said ATP isn't on the group of rigs being stopped, but the 6-month moratorium on permits could have a significant impact on the Telemark well, which could extend it to 2011, rather than in 2010.

Trimble rightly noted that selling off ATP was overreactive, and he maintains a buy rating on the company and a price target of $23.

1 comment:

Anonymous said...

stock like all gulf companies is in distress.Is this co still allowed to produce on a high level or are they so curtailed or likely to be curtailed as a result of whats happening that seems so devestating and without any end in sight?