ATP Oil & Gas Corporation (NASDAQ:ATPG) today announced that it has added flexibility to its Term Loans by widening its covenants for the reporting periods from December 31, 2009 through December 31, 2010.

T. Paul Bulmahn, ATP’s Chairman and CEO said, “Since 2008, the world has experienced a severe recession. Despite these conditions, ATP has delivered increased financial strength and decreased our debt. Since December 2008 ATP’s Tranche B-2 Term Loan has been reduced from $600 million to $161 million. This performance has been recognized by our lenders and is one of the reasons that ATP was able to obtain greater flexibility with our covenants in order to address our goals of first production at Telemark, reduction of the Tranche B-2 and added financial strength. The reception of the investment community to our amendment transaction reflects their continued confidence in the company’s strategy.”

General terms of the amendment expand the Net Debt to EBITDAX ratio from 3.0x to 4.0x, the EBITDAX to Interest ratio from 2.5x to 2.0x and the current ratio from 1.0x to 0.8x. During the period of the expanded covenants, the spread on the rate for ATP’s Term Loans will increase by 2.75% falling to 1.00% for the period beginning in January 2011. ATP paid an initial fee to the lenders of a half percent at closing.

Credit Suisse acted as sole lead arranger for the amendment.

About ATP Oil & Gas Corporation

ATP Oil & Gas is an international offshore oil and gas development and production company with operations in the Gulf of Mexico and the North Sea. The company trades publicly as ATPG on the NASDAQ Global Select Market. For more information about ATP Oil & Gas Corporation, visit www.atpog.com.

Forward-looking Statements

Certain statements included in this news release are “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. ATP cautions that assumptions, expectations, projections, intentions, or beliefs about future events may, and often do, vary from actual results and the differences can be material. Some of the key factors which could cause actual results to vary from those ATP expects include changes in natural gas and oil prices, the timing of planned capital expenditures, availability of acquisitions, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as ATP’s ability to access them, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting our business. More information about the risks and uncertainties relating to ATP’s forward-looking statements is found in the Company’s SEC filings.