ATP Oil & Gas Corporation (NASDAQ:ATPG) today released first quarter 2012 financial results and an operations update. Results of Operations Production in first quarter 2012 was 2.0 MMBoe (million barrels of oil equivalent) of which 63% was oil and condensate, compared to 2.3 MMBoe in the first quarter 2011 of which 68% was oil and condensate. This falls within ATP’s previously-stated expectation of 1.8 – 2.1 MMBoe for first quarter 2012. First quarter 2012 production includes approximately 0.1 MMBoe from a royalty relief adjustment related to 2011 production. Revenues from oil and gas production were $146.6 million in first quarter 2012 including a $3.0 million benefit for royalty relief related to 2011, compared to $166.5 million with no corresponding adjustment for royalty relief in first quarter 2011. Cash provided by operating activities in first quarter 2012 was $100.9 million, compared to $86.2 million in first quarter 2011. ATP ended first quarter 2012 with a cash balance of $224.7 million, compared to $65.7 million in fourth quarter 2011. ATP’s working capital deficit was $267.9 million at the end of first quarter 2012 compared to a $347.5 million deficit at the end of fourth quarter 2011. Lease operating expense for first quarter 2012 was $26.9 million compared to $32.4 million in first quarter 2011. Recurring lease operating expense was $23.2 million in first quarter 2012 and $25.0 million in first quarter 2011. The improvement was primarily a result of lower variable expense. Excluded from recurring lease operating expense was workover expense of $3.7 million in first quarter 2012 and $7.4 million in first quarter 2011. The workover expenses in first quarter 2012 were primarily due to hull repair and maintenance work at Gomez Hub, while the workover expenses in first quarter 2011 were primarily due to work at ATP’s Atwater 63 and Mississippi Canyon 711 properties. General and administrative expense was $18.0 million in first quarter 2012, which included $3.8 million of organization and startup costs of operations in Israel and other international prospect generation costs, and $3.7 million of bonuses awarded to executives by the Board. The remaining general and administrative expense of $10.5 million is comparable to the $9.7 million in first quarter 2011. For first quarter 2012, ATP recorded a net loss attributable to common shareholders of $145.1 million or $(2.83) per basic and diluted share compared to $119.5 million or $(2.34) per basic and diluted share in first quarter 2011. The net loss attributable to common shareholders was impacted by items analysts sometimes exclude from published estimates. For first quarter 2012, those items included a gain on abandonment of $0.4 million, impairment of oil and gas properties of $1.2 million, and unrealized losses on derivative contracts of $42.8 million. For first quarter 2011, those items included unrealized losses on derivative contracts of $42.9 million and $18.5 million of drilling interruption costs associated with the Gulf of Mexico moratorium.