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This excerpt taken from the ATPG 10-Q filed May 11, 2009. Note 6 — Asset Retirement Obligation Following are reconciliations of the beginning and ending asset retirement obligation for the following periods (in thousands):
These excerpts taken from the ATPG 10-K filed Mar 13, 2009. Asset Retirement Obligation We recognize liabilities associated with the eventual retirement of tangible long-lived assets, upon the acquisition, construction and development of the assets. We record the fair value of a liability for an asset retirement obligation in the period in which it is incurred and a corresponding increase in the carrying amount of the related long-lived asset. Changes in estimates on fully depleted properties are charged directly to loss on abandonment. Shortages or an increase in cost of drilling rigs, equipment, supplies or personnel could delay or adversely affect our abandonment operations, which could have a material adverse effect on our business, financial condition and results of operations. Increased drilling activity in the Gulf of Mexico and the North Sea decreases the availability of offshore rigs and associated equipment. In periods of increased drilling activity in the Gulf of Mexico and the North Sea, we may experience increases in associated costs, including those related to drilling rigs, equipment, supplies and personnel and the services and products of other vendors to the industry. These costs may increase further and necessary equipment and services may not be available to us at economical prices. For the years ended December 31, 2008, 2007 and 2006, we recorded losses on abandonment of $13.3 million, $18.6 million and $9.6 million, respectively, primarily as a result of unanticipated increases in service costs in the Gulf of Mexico. We will recognize (i) depletion expense on the additional capitalized costs; (ii) accretion expense as the present value of the future asset retirement obligation increases with the passage of time, and; (iii) the impact,
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Table of ContentsIndex to Financial StatementsATP OIL & GAS CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
if any, of changes in estimates of the liability. Vendor prices for services and equipment related to asset retirement operations in the Gulf of Mexico increased significantly relative to expectations especially during 2007 and the early part of 2008. Consequently, we revised our estimates of retirement costs for our oil and gas properties as needed. The following table sets forth a reconciliation of the beginning and ending asset retirement obligation (in thousands):
Asset Retirement Obligation SIZE="2">We recognize liabilities associated with the eventual retirement of tangible long-lived assets, upon the acquisition, construction and development of the assets. We record the fair value of a liability for an asset retirement obligation in could have a material adverse effect on our business, financial condition and results of operations. Increased drilling activity in the Gulf of Mexico and the North Sea decreases the availability of offshore rigs and associated equipment. In periods of increased drilling activity in the Gulf of Mexico and the North Sea, we may experience increases in associated costs, including those related to drilling rigs, equipment, supplies and personnel and the services and products of other vendors to the industry. These costs may increase further and necessary equipment and services may not be available to us at economical prices. For the years ended December 31, 2008, 2007 and 2006, we recorded losses on abandonment of $13.3 million, $18.6 million and $9.6 million, respectively, primarily as a result of unanticipated increases in service costs in the Gulf of Mexico. We will
F-11 Table of ContentsIndex to Financial StatementsATP OIL & GAS CORPORATION AND SUBSIDIARIES
This excerpt taken from the ATPG 10-Q filed Nov 10, 2008. Note 5 — Asset Retirement Obligation Following are reconciliations of the beginning and ending asset retirement obligation for the following periods (in thousands):
This excerpt taken from the ATPG 10-Q filed Aug 8, 2008. Note 5 — Asset Retirement Obligation Following are reconciliations of the beginning and ending asset retirement obligation for the following periods (in thousands):
This excerpt taken from the ATPG 10-Q filed May 12, 2008. Note 5 — Asset Retirement Obligation Following are reconciliations of the beginning and ending asset retirement obligation for the following periods (in thousands):
This excerpt taken from the ATPG 10-K filed Mar 7, 2008. Asset Retirement Obligation We recognize liabilities associated with the eventual retirement of tangible long-lived assets, upon the acquisition, construction and development of the assets. We record the fair value of a liability for an asset retirement obligation in the period in which it is incurred and a corresponding increase in the carrying amount of the related long-lived asset. We will recognize (i) depletion expense on the additional capitalized costs; (ii) accretion expense as the present value of the future asset retirement obligation increases with the passage of time, and; (iii) the impact, if any, of changes in estimates of the liability. During the second half of 2007, vendor prices for services and equipment related to asset retirement operations in the Gulf of Mexico increased significantly relative to expectations. Consequently, we revised our estimates of retirement costs for our oil and gas properties. The following table sets forth a reconciliation of the beginning and ending asset retirement obligation (in thousands):
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Table of ContentsIndex to Financial StatementsATP OIL & GAS CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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