Document:

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                                                                    EXHIBIT 10.7

            [LOGO OF
            EL PASO ENERGY
            MARKETING           EL PASO ENERGY
            APPEARS HERE]          MARKETING

                        NATURAL GAS PURCHASE AGREEMENT

CONTRACT DATE: December 1, 1998       CONTRACT NO.:
BUYER:                                SELLER:
EL PASO ENERGY MARKETING COMPANY      ATP ENERGY, INC.

NOTICE/BILLING                        NOTICES/BILLING
ADDRESS:  P.O. Box 2511               ADDRESS:   4600 Post Oak Place, Suite 230
          Houston, Texas 77252-2511              Houston, Texas 77027
ATTN:     Accounting Department       ATTN:      Contract Service

FOR OVERNIGHT DELIVERY:               PAYMENT ADDRESS: For Payment
          1001 Louisiana, 25th Floor             Chase Bank of Texas
          Houston, Texas 77002                   Acct # 01000027441
ATTN:     Contract Services                      ABA  # 113000609

TELEPHONE: (713) 420-5000             TELEPHONE: (713) 622-3311

FACSIMILE: (713) 420-2180             FACSIMILE: (713) 622-5101

This Agreement is entered into and effective as of the contract date written
above, and will continue therefrom for an initial term through the last day of
December, 2001 and month to month thereafter, unless terminated by at least
thirty (30) days prior written notice from either party to the other.

This Agreement incorporates and is subject to the terms and conditions set out
hereunder, and a Confirmation Letter in the form of an Exhibit "A", as such
Confirmation Letter may be amended from time to time.

            ACCEPTED AND AGREED TO THIS 30th day of December, 1998

BUYER:                                 SELLER:
EL PASO ENERGY MARKETING COMPANY       ATP ENERGY, INC.

BY:                                    BY: /s/ PAUL BULMAHN
   ------------------------------         ---------------------------------
   TITLE:                                 TITLE: PRESIDENT

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                       TERMS AND CONDITIONS OF PURCHASE

PURPOSES AND PROCEDURES: EL PASO ENERGY MARKETING COMPANY ("Buyer") and ATP OIL
& GAS CORPORATION. ("Seller") Will enter into a Firm Natural Gas Transactions
(hereinafter __ defined) pursuant to which natural Gas is delivered and received
at one or more mutually agreeable delivery points. The Buyer or Seller may
sometimes be referred to collectively as "Parties" or singularly as "Party."

"FIRM" SHALL MEAN THAT EITHER PARTY MAY INTERRUPT ITS PERFORMANCE WITHOUT
LIABILITY ONLY TO THE EXTENT THAT SUCH PERFORMANCE IS PREVENTED FOR REASONS OF
FORCE MAJEURE; PROVIDED, HOWEVER, THAT DURING FORCE MAJEURE INTERRUPTIONS, THE
PARTY INVOKING FORCE MAJEURE MAY BE RESPONSIBLE FOR ANY IMBALANCE CHARGES
RELATED TO ITS INTERRUPTION AFTER THE NOMINATION IS MADE TO THE TRANSPORTER AND
UNTIL THE CHANGE IN DELIVERIES AND OR RECEIPTS IS CONFIRMED BY THE TRANSPORTER.

CONFIRMATION LETTER: The Confirmation Letter is a document in the form of
Exhibit "A" hereto that is prepared by the sending Party, faxed by the sending
Party to the receiving Party, executed by the receiving Party, and faxed by the
receiving Party to the sending Party. The Confirmation Letter shall be deemed
for all purposes to be in writing, to have been signed by both parties, and to
constitute an "original" for purposes of the best evidence rule.

TERM: The effective date and term shall be as indicated on the face of this
Agreement.

QUANTITY: Subject to the provisions of this Agreement, Maximum Daily Quantity
set forth in the Confirmation Letter, attached hereto and made a part hereof.
Either Party shall notify the other Party of its nomination(s), from time to
time, with prior notice of at least twenty-four (24) hours and/or within the
transporting pipeline's deadline date for making changes in nominations to be
effective the next day at 7:00 A.M. Sales and purchases hereunder are subject to
and expressly made contingent upon the availability of acceptable transportation
capacity necessary for Seller to deliver and Buyer to receive such gas at the
Point(s) of Delivery set forth in the Confirmation Letter. In the event Seller
delivers more or less than the effective nomination(s), and as a result thereof,
Buyer is assessed imbalance penalties, fees, or charges, Seller shall reimburse
Buyer for same within ten (10) days of Seller's receipt of Buyer's invoice
therefor.

PRICE: Buyer shall pay Seller, for all quantities of gas nominated and received
for Buyer's account hereunder, the price per MMBtu set forth in the Confirmation
Letter. Such price will be inclusive of all royalties, taxes, transportation
charges, expenses and costs applicable to the gas prior to receipt by Buyer at
the Point(s) of Delivery set forth in the Confirmation Letter. In the event
Buyer should be required, by the laws of any governmental body having
jurisdiction hereunder, to pay any such costs or charges for which Seller is
liable, then Buyer shall have the right to reduce the amount payable hereunder
by an amount equal to such costs or charges.

POINT(S) OF DELIVERY: The Point(s) of Delivery for all gas delivered hereunder
shall be set out in the Confirmation Letter. All rights, title, interest and
risk of loss to all gas purchased hereunder shall pass to Buyer upon the receipt
of such gas by Buyer or Buyer's designee at the Point(s) of Delivery set forth
in the Confirmation Letter. Seller shall have possession of the gas and shall
arrange for all necessary transportation of the as from Seller's source(s) of
such gas to the Point(s) of Delivery set forth in the Confirmation Letter.

MEASUREMENT: The parties agree that the measurement of gas purchased hereunder
shall be performed by the pipeline designated to Buyer to receive the gas at the
Point(s) of Delivery as described in the Confirmation Letter. The unit of
measurement for payment purposes shall be one million (1,000,000) BTU, as
measured on a dry basis. BTU and volume measurements shall be made at the
pressure and temperature basis of the measuring pipeline in accordance with the
provisions of such pipeline's then effective F.E.R.C. Gas Tariff, or in the
event such pipeline is not subject to FERC regulation, the applicable gas
transportation regulations or contract provisions of such pipeline.

QUALITY AND PRESSURE: Gas tendered for sale hereunder shall meet the quality and
pressure specifications of the pipeline system and/or facilities which shall
receive the as at the Point(s) of Delivery set forth in the Confirmation Letter.

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                       TERMS AND CONDITIONS OF PURCHASE

FORCE MAJEURE: Nonperformance of any obligation hereunder, other than the
obligation to make payment hereunder, shall be executed if prevented by an
occurrence of legitimate force majeure, but only for so long as performance is
prevented by such force majeure. The Party claiming excuse shall make reasonable
efforts to avoid the adverse impacts of a Force Majeure and to resolve the event
or occurrence once it has occurred in order to resume performance. Force majeure
as used herein shall mean any event beyond the reasonable control of the Party
in question which prevents, in whole or in part, that Party's performance or
obligations hereunder. With respect to FIRM transaction only, force majeure
shall specifically exclude economic hardship.

Force Majeure shall include but not be limited to the following: (i) physical
events such as acts of God, landslides, lightning, earthquakes, fires, storms or
storm warnings which result in evacuation of the affected area, floods,
washouts, explosions, breakage or accident or necessity of repairs to machinery
or equipment or lines of pipe; (ii) weather related events affecting an entire
geographic region, such as hurricanes, or freezing or failure of wells or lines
of pipe; (iii) acts of others such a strikes, riots, sabotage, insurrections or
wars; (iv) governmental actions such as necessity for compliance with any court
order, law, statute, ordinance, or regulation promulgated by a governmental
authority having jurisdiction; and (v) any other causes, whether of the kind
herein enumerated or otherwise, not reasonably within the control of the
affected Party.

BILLING AND PAYMENT: As soon as reasonably practical following the close of each
month during which deliveries of gas occurred pursuant to an effective
Confirmation Letter, Seller shall render to Buyer a statement showing the
quantity of gas delivered at the Point(s) of Delivery and the amount due
therfor. Buyer shall make payment to Seller, by wire transfer on the
Twenty-Fifth day of the month following the delivery month. In the event, Buyer
has obtained a statement of actual volumes received for Buyer's account, from
the Party responsible for measurement at the Point(s) of Delivery, then Buyer
shall adjust the amounts due on Seller's invoice and shall make payment to
Seller on the adjusted amount. In such event, Buyer shall promptly provide
Seller with a third Party measurement statement sufficiently supporting Buyer's
adjustment. If there is a bona fide dispute with regard to any amount billed,
Buyer shall nevertheless pay the undisputed amount when due. If any amount
billed hereunder is not paid by Buyer when due, then, absent a bona fide dispute
as to whether such amount is due, interest shall accrue on the unpaid amount
from the due date until paid at the prime commercial rate charged by CitiBank
N.A. New York, New York, plus two (2) percent or the maximum legal rate,
whichever is less.

FINANCIAL ASSURANCE: Should Buyer fail to give adequate assurance of its ability
to perform its obligations under this Agreement within forth-eight (48) hours of
Seller demand, Seller may withhold and/or suspend deliveries, or terminate this
Agreement without prior notice, in addition to any and all other remedies
available hereunder.

WARRANTY AND INDEMNIFICATION: Seller warrants that, at the time of delivery of
all gas sold hereunder to Buyer, Seller shall have good title to the right to
sell such gas and that such gas shall be free and clear of all liens,
encumbrances or claims. Seller shall agree to hold harmless, defend and
indemnify Buyer against all suits, actions, debts, accounts, damages, costs
(including reasonable attorneys' fees) arising from or out of any adverse claims
relating to Seller's title or right to sell such gas. In the event of any claim
or litigation, at any time, concerning Seller's title to the leases, wells, gas
produced or liquid hydrocarbons recovered from the gas sold hereunder or the
proceeds from the sale thereof, Buyer shall be entitled to suspend payments to
Seller until such claims or litigation of title is resolved to Buyer's
satisfaction.

AUDIT: Each Party shall have the right at its sole expense and at reasonable
hours to examine the records of the other Party to the extent necessary to
verify the accuracy of any statement or other data that may reasonably have a
bearing on or pertain to any business conducted hereunder between the parties;
provided, however, that the auditing Party does not have the right to examine
any record relating to transactions that occurred more than two (2) years before
the date of the date of the audit. In the event of any inaccuracy, any necessary
adjustments in the billing shall be made within thirty (30) days after the
determination thereof. This provision of this Agreement shall survive any
termination of this Agreement.

LIMITATION OF ACTION: ANY ACTION FOR BREACH OF THIS AGREEMENT MUST BE COMMENCED
WITHIN TWO (2) YEARS AFTER THE ALLEGED BREACH OCCURS, REGARDLESS OF

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                       TERMS AND CONDITIONS OF PURCHASE

THE AGGRIEVED PARTY'S LACK OF KNOWLEDGE OF THE ALLEGED BREACH. THIS PROVISION
SHALL SURVIVE ANY TERMINATION OF THIS AGREEMENT.

NOTICE: Any notice, demand, or statement or payment, other than nominations
provided for herein, shall be in writing and shall be deemed delivered when
mailed, postage prepaid, by United States mail to the address of the Party to
receive same as set forth on the face of this Agreement.

ASSIGNMENTS: This Agreement may not be assigned by either Party hereto except to
an affiliate of the assigning Party; provided, however, either Party may pledge,
mortgage or assign its rights hereunder as security for indebtedness. This
Agreement extends to and will be binding upon the respective successors and
assigns of Buyer and Seller.

DISCLAIMER OF WARRANTIES: THERE ARE NO WARRANTIES WHICH EXTEND BEYOND EXPRESS
WARRANTY OF TITLE SET FORTH HEREIN. IN PARTICULAR, THERE ARE NO OTHER EXPRESS
WARRANTIES AND NO IMPLIED WARRANTIES, INCLUDING ANY WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

APPLICABLE LAW: THIS AGREEMENT IS GOVERNED BY THE LAWS OF THE STATE OF TEXAS,
WITHOUT RECOURSE TO THE RULES OF CONFLICT OF LAWS. THIS PROVISION SHALL SURVIVE
ANY TERMINATION OF THIS AGREEMENT.

LIMITATION ON LIABILITY: NOTWITHSTANDING ANY OTHER PROVISIONS HEREIN, THE
PARTIES HERETO WAIVE ANY AND ALL RIGHTS, CLAIMS OR CAUSES OF ACTION ARISING
UNDER THIS AGREEMENT FOR INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES OR FOR
LOST PROFITS. THIS PROVISION SHALL SURVIVE ANY TERMINATION OF THIS AGREEMENT.

ARBITRATION CLAUSE: ANY CONTROVERSY OR CLAIM ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE BREACH THEREOF SHALL BE SETTLED BY ARBITRATION BY THREE
ARBITRATORS IN HOUSTON, TEXAS, IN ACCORDANCE WITH THE AMERICAN ARBITRATION
ASSOCIATION COMMERCIAL ARBITRATION RULES. JUDGMENT UPON THE AWARD RENDERED BY
THE ARBITRATORS MAY BE ENTERED IN ANY COURT HAVING JURISDICTION THEREOF. THE
PREVAILING PARTY SHALL BE ENTITLED TO ITS REASONABLE ATTORNEYS' FEES. ANY
MONETARY AWARD SHALL ACCRUE INTEREST FROM THE DATE OF THE BREACH TO THE DATE OF
ANY JUDGMENT ENTERED ON THE AWARD AT THE PRIME COMMERCIAL RATE CHARGED ON THE
DATE OF THE BREACH BY CITIBANK, N.A. NEW YORK, NEW YORK, PLUS TWO (2) PERCENT OR
AT THE MAXIMUM LEGAL RATE, WHICHEVER IS LESS. IF A PARTY FILES A COMPLAINT IN
ANY COURT WITH RESPECT TO ANY MATTER SUBJECT TO ARBITRATION HEREUNDER, THE
DEFENDANT IN SUCH COURT ACTION SHALL BE ENTITLED TO RECOVER ITS REASONABLE
ATTORNEYS' FEES IN CONNECTION WITH THE COURT ACTION. THIS ARBITRATION PROVISION
SHALL SURVIVE ANY TERMINATION OF THIS AGREEMENT.

ENTIRE AGREEMENT: This document constitutes the entire Agreement between the
parties with respect to the subject matter hereof. No promise, agreements or
warranties additional to this Agreement will be deemed to be a part hereof, nor
will any alteration, amendment or modification hereof, be effective unless
mutually agreed in writing by the parties hereto. The Confirmation Letter shall
be amended to reflect any changes to Point(s) of Delivery, Measuring Party,
Maximum Daily Quantity, Sales Price, or Effective Term agreed to by the parties
for gas sold hereunder.

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                                                                    EXHIBIT 10.8

                          PURCHASE AND SALE AGREEMENT

     THIS PURCHASE AND SALE AGREEMENT ("Agreement") is made as of the ____ day
of September, 1999, between Eugene Offshore Holdings, LLC ("Seller"), with a
place of business at 1400 Smith Street, Houston, Texas 77002, and ATP Oil & Gas
Corporation ("Purchaser"), with a place of business at 4600 Post Oak Place,
Suite 230, Houston, Texas 77027.

     WHEREAS, Seller desires to sell to Purchaser, and Purchaser desires to
purchase from Seller, on the terms and conditions set forth in this Agreement,
all of Seller's interests and rights in a certain oil and gas lease, and certain
agreements, contracts, immovable property, movable property, and equipment.

     NOW, THEREFORE, for good and valuable consideration and for the mutual
covenants herein contained, Seller and Purchaser agree as follows:

                           ARTICLE 1. EFFECTIVE TIME

     The ("Effective Time") of the sale and purchase provided for in this
Agreement shall be May 1,1999, as of 7:00 AM, C. D. T.

                          ARTICLE 2. PURCHASE AND SALE

     2.01  The Interests.  Subject to the terms and conditions of this
Agreement, at Closing (as hereinafter defined) Seller shall sell and Purchaser
shall purchase all of Seller's right, title and interest in and to the following
assets described in Subsections 2.01(a) through 2.01(e) (collectively called the
"Interests"):

     (a)  The oil and gas lease described in Exhibit "A," attached hereto and
made a part hereof(hereinafter called the "Lease");

     (b)  The wells, equipment and facilities located on the Lease (collectively
called the "Equipment"), including, but not limited to, pumps, platforms, well
equipment (surface and subsurface), saltwater disposal wells, water wells, lines
and facilities, sulfur recovery facilities, compressors, compressor stations,
dehydration facilities, treating facilities, pipeline gathering lines, flow
lines, and transportation lines, valves, meters, separators, tanks, tank
batteries and other fixtures;

     (c)  Oil, condensate, natural gas, and natural gas liquids produced after
the Effective Time, attributable to the Lease;

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     (d)  To the extent transferable and only to the extent that they relate to
the other Interests, all contracts and agreements concerning the other
Interests, including, but not limited to, unit agreements, pooling agreements,
areas of mutual interest, farmout agreements, farmin agreements, saltwater
disposal agreements, water injection agreements, line well injection agreements,
transportation agreements, processing agreements, operating agreements, and gas
balancing agreements; and

     (e)  To the extent transferable, all easements, rights-of-way, licenses,
authorizations, permits, and similar rights and interests applicable to, or used
in connection with, the Interests.

                             ARTLCLE 3. SALE PRICE

     3.01  Sale Price and Adjusted Sale Price.  The sale price (the "Sale
Price") for the Interests shall be SEVENTEEN-MILLION FIVE-HUNDRED-THOUSAND
DOLLARS ($17,500,000.00).  The Sale Price as adjusted pursuant to this Article
shall be referred to as the "Adjusted Sale Price."

     3.02 Sale Price Adjustments.  The Sale Price shall be adjusted as follows:

     (a)  The Sale Price shall be increased by an amount equal to the costs and
expenses, net of any applicable joint interest billings, refunds or credits that
are (i) attributable to the Interests after the Effective Time, and (ii) paid by
Seller.

     (b)  The Sale Price shall be decreased by (i) an amount equal to the net
proceeds received by Seller from the sale of hydrocarbons produced from and
after the Effective Time, and (ii) an amount equal to all other proceeds
received by Seller from whatever source derived that relate to the Interests and
are attributable to periods on or after the Effective Time.

     (c)  Seller shall deliver to Purchaser  before the Closing (as defined
hereinafter) a statement in the format attached hereto as Exhibit "B" (the
"Closing Statement") setting forth the adjustments to the Sale Price provided
above.

                             ARTICLE 4. THE CLOSING

     The sale and purchase described in Article 2 shall take place at a closing
(the "Closing") at which the Purchaser shall pay or cause to be paid to Seller
the Adjusted Sale Price and Seller shall deliver the conveyancing instruments
referred to in Article 9 to Purchaser. The Closing shall occur on September __,
1999, at such time and place as the parties may agree upon (the "Closing Date").

                   ARTLCLE 5. THIRD PARTY RIGHTS AND CONSENTS

     There are no consents to transfer or similar restraints on alienability,
other than governmental approvals, burdening the Interests.

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                           ARTLCLE 6. REPRESENTATIONS

     6.01  Exclusivity and Survivability of Representations. The express
representations contained in this Agreement are exclusive and are instead of all
other representations, express, implied, or statutory.  The representations
contained in section 6.02 shall survive Closing for a period of one year, but
all other representations shall terminate at Closing.

     6.02  Mutual Representations.  Each party represents to the other that:

     (a)  It is a corporation or limited liability company duly organized,
validly existing and in good standing under the laws of the State of its
incorporation, and is duly qualified to do business on the Outer Continental
Shelf of the Gulf of Mexico;

     (b)  It has all authority necessary to enter into this Agreement and to
perform all its obligations hereunder;

     (c)  Its execution, delivery and performance of this Agreement and the
transactions contemplated hereby will not: (i) violate or conflict with any
provision of its certificate of incorporation, by-laws or other governing
documents; (ii) result in the breach of any term or condition of or constitute a
default or cause the acceleration of any obligation under any agreement or
instrument to which it is a party or by which it is bound; or (iii) violate or
conflict with any applicable judgment, decree, order, permit, law, rule, or
regulation;

     (d)  This Agreement has been duly executed and delivered on its behalf, and
at the Closing all documents and instruments required hereunder will have been
duly executed and delivered.  This Agreement, and all such documents and
instruments shall constitute legal, valid and binding obligations enforceable in
accordance with their respective terms, except to the extent enforceability may
be affected by bankruptcy, reorganization, insolvency or similar laws affecting
creditors' rights generally; and

     (e)  Neither party has incurred any obligation or liability, contingent or
otherwise, for brokers or finders' fees in connection with this Agreement in
respect of which the other party may have any responsibility.

     6.03  Seller's Representations.  Seller represents that:

     (a)  The Interests are free and clear of all liens, mortgages, and other
similar burdens created by Seller;

     (b) To Seller's knowledge and belief, it is not in default or breach under
any contract or agreement relating to the Interests;

     (c)  Seller has timely paid all royalties, rentals and other payments due
under the Lease and the Lease is in full force and effect;

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     (d)  No imbalance of gas deliveries of any kind exists with regard to the
interest of Seller in the Interests;

     (e)  The Interests are not subject to any sales contract for oil, gas, or
other hydrocarbons that requires more than thirty (30) days notice to terminate;

     (f)  There is no lien, claim, demand, suit, action or other proceeding
pending or, to the knowledge of Seller, threatened which could result in
impairment or loss of Seller's title to any part of the Interests or loss in
value thereof; and

     (g)  Since the Effective Date, there has not been:  (i) any incurrence by
Seller of any liabilities or obligations with respect to the Interests other
than A) liabilities or obligations incurred in the ordinary course of business,
or B) capital expenditures totaling $65,000.00 or less;  (ii) any sale, lease of
other disposition by Seller affecting the Interests other than sales of
hydrocarbons in the ordinary course of business;  (iii)  any mortgage or pledge
by Seller of, or grant by Seller of a lien or security interest in, the
Interests; or (iv)  any change, damage, destruction or casualty loss affecting
the Interests which, taken as a whole, could have a impact of more than
$25,000.00.

            ARTLCLE 7. DISCLAIMER OF REPRESENTATIONS AND WARRANTIES

     Disclaimer of Warranty.   ANY ASSIGNMENT, DEED, LEASE OR OTHER CONVEYANCE
EXECUTED PURSUANT HERETO SHALL BE EXECUTED WITH FULL SUBSTITUTION AND
SUBROGATION OF PURCHASER AS TO ALL CLAIMS SELLER HAS OR MAY HAVE AGAINST ALL
PRECEDING OWNERS OF THE INTERESTS THAT MAY BE ASSIGNABLE.  WITHOUT LIMITING THE
FOREGOING, THE TRANSACTION CONTEMPLATED HEREBY SHALL BE WITHOUT ANY WARRANTY OR
REPRESENTATlON OF TITLE, EITHER EXPRESS, IMPLIED, OR STATUTORY, AND WITHOUT ANY
EXPRESS, IMPLIED OR STATUTORY WARRANTY OR REPRESENTATlON AS TO THE CONDITION,
QUANTITY, QUALITY, FITNESS FOR A PARTICULAR PURPOSE, FREEDOM FROM REDHIBITORY
VICES OR DEFECTS, OR MERCHANTABILITY OF ANY OF THE EQUIPMENT (AS DESCRIBED IN
ARTICLE 2.01(b)) OR ITS FITNESS FOR ANY PURPOSE.

                        ARTICLE 8. CONDITIONS OF CLOSING

     Each party's obligation to consummate the transaction provided for herein
is subject to the satisfaction or waiver by the other party of the following
conditions:

     8.01  Representations.  The representations contained in Article 6 hereof
shall be true and correct in all material respects on the Closing Date as though
made on and as of the Closing Date.

     8.02  Performance.  Each party shall have performed in all material
respects the obligations, covenants and agreements hereunder to be performed by
it at or prior to the Closing Date.

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     8.03  Pending Matters.  No suit, action or other proceeding by a third
party or a governmental authority shall be pending that seeks to restrain,
enjoin or otherwise prohibit the consummation of the transactions contemplated
by this Agreement.

                  ARTICLE 9. TRANSACTIONS ON AND AFTER CLOSING

     At the Closing, the following shall occur:

     9.01  Assignment and Bill of Sale.  Seller shall execute, acknowledge and
deliver five (5) originals of an Assignment and Bill of Sale substantially in
the form of Exhibit "C" (Record Title Assignment), attached hereto and made a
part hereof, appropriate letters in lieu of transfer orders to be furnished by
Seller, and such other necessary instruments in forms that are mutually
acceptable to the parties in accordance with the obligations outlined in this
Agreement, covering all of the Interests to be sold pursuant hereto.

     9.02  Adjusted Sale Price.  Purchaser shall deliver the Adjusted Sale Price
to Seller by wire transfer to the account specified by Seller.

     9.03  Possession of the Interests.  Seller shall (subject to the terms
hereof and the contracts listed or referred to on Exhibit "A") deliver to
Purchaser exclusive possession of the Interests upon the Closing.

     9.04  Notice of Sale.  Promptly after the Closing, Purchaser shall notify
all operators, non-operators, oil and gas purchasers, transporters and
processors, government agencies and royalty owners that it has purchased the
Interests.

     9.05  Records.  Seller shall, at Closing or as promptly as reasonably
possible after Closing, but in no event later than fifteen (15) days after
Closing, deliver to Purchaser all records and documents in Seller's possession
or control ("Records") relating to the Interests, including, but not limited to,
land and lease files, division of interest computer printouts, contract files
(as listed or referred to on Exhibit "A"), well files and copies of well logs.
Seller reserves the right to copy and retain all Records relating to the
Interests.

     9.06 Records Retention.  Purchaser agrees that for a period of three (3)
years after the Closing, Records delivered to Purchaser by Seller shall be
retained by Purchaser.  Purchaser shall make such Records available to Seller
and its officers, employees, consultants and representatives upon reasonable
notice and during normal business hours.

               ARTlCLE 10. ALLOCATION OF PRODUCTION AND PROCEEDS

     All production of hydrocarbons from the Interests prior to the Effective
Time, and all proceeds from or

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attributable to the sale of such production, shall be the property of Seller.
All such production on and after the Effective Time, and all proceeds from or
attributable to the sale thereof, shall be the property of Purchaser. Production
shall be allocated to the parties based upon the most reliable measurement
method or allocation calculation information available and mutually acceptable
to the parties. Any amount received by Purchaser after the Effective Time
attributable to the sale of hydrocarbons produced prior to the Effective Time
shall be paid to Seller by Purchaser; and any amount received by Seller after
the Effective Time attributable to the sale of hydrocarbons produced on and
after the Effective Time shall be paid to Purchaser by Seller.

            ARTLCLE 11. RESPONSIBILITY FOR PAYMENTS AND OBLIGATLONS

     11.01  Abandonment Liabilities.  As additional consideration for the sale
of the Interests, Purchaser shall plug and abandon, remove, restore, remediate
and cleanup all wells, pipelines, flowlines, platforms, personal property,
machinery, facilities and equipment included in the Interests and perform all
necessary surface remediation and cleanup and complete all reclamation
associated with the Interests.  Purchaser agrees to perform all such plugging,
abandonments, removals, restoration, remediation and cleanup in accordance with
all applicable statutes, governmental orders and regulations and hereby agrees
to defend, release, protect, indemnify and hold Seller harmless from any and all
claims arising from Purchaser's failure to plug and abandon such wells or
perform such removals, restoration, remediation and cleanup.

     11.02  Royalty Payments and Operating Costs.  Seller shall be responsible
for (i) all lease rentals, shut-in royalties, minimum royalties, payments in
lieu of production, production royalties (including royalties paid in kind),
overriding royalties, production payments and net profits payments, and (ii) all
operating costs, vendor and contractor invoices and other liquidated monetary
obligations of Seller that in each case accrued prior to the Effective Time and
are attributable to the ownership, operation, use or maintenance of the
Interests. Purchaser assumes and shall be responsible for all of the above
described payments and obligations that  have accrued or accrue on and after the
Effective Time.

     11.03  Joint Billing Audits.  Seller shall be responsible for the
settlement of all joint billing audits that relate to the Interests for
accounting periods prior to the Effective Time.  Purchaser shall be responsible
for the settlement of all joint billing audits that relate to the Interests for
accounting periods on and after the Effective Time.  Any cash received by
Purchaser after the Effective Time attributable to expenses paid by Seller prior
to the Effective Time shall be paid to Seller by Purchaser.  Likewise, any cash
received by Seller after the Effective Time attributable to expenses paid by
Purchaser after the Effective Time shall be paid to Purchaser by Seller, except
to the extent previously allocated in the calculation of the Adjusted Sale
Price.

                               ARTlCLE 12. TAXES

     All taxes, including, but not limited to, excise taxes, state severance
taxes, ad valorem taxes, and any other local, state, and federal taxes or
assessments attributable to the Interests or any part thereof prior to the
Effective Time, shall remain Seller's

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responsibility and all deductions, credits and refunds pertaining to the
aforementioned taxes, attributable to the Interests or any period thereof prior
to the Effective Time (no matter when received), belong to Seller. All such
taxes and assessments attributable to the Interests or any part thereof on and
after the Effective Time are Purchaser's responsibility, and all deductions,
credits, and refunds pertaining thereto on and after the Effective Time (no
matter when received) belong to Purchaser.

                          ARTICLE 13. FINAL ACCOUNTING

     In the event, either Seller or Purchaser requests a final settlement
statement subsequent to the Closing, Seller shall issue the final settlement
statement for the Interests conveyed within ninety (90) days after the Closing
or within sixty (60) days of the request, whichever is later.  This statement
will net revenues received against royalties, operating expenses, taxes, and
overhead if applicable.  Purchaser, after having access to the applicable
accounting records for reasonable audit verification, shall respond with
objections and proposed corrections within sixty (60) days of the issuance of
the final settlement statement.  In the event Purchaser does not respond to the
final settlement statement by signing or objecting within sixty (60) days of the
issuance of the final settlement statement, said statement shall be deemed
approved by Purchaser.  After approval by both parties, the final settlement
statement for the Interests conveyed will be summarized and a net check will be
issued to the appropriate party within seven (7) days.

                          ARTICLE 14. INDEMNIFICATIONS

     In addition to any other indemnification contained in this Agreement:

     (a)  Purchaser shall defend, indemnify, save, discharge, release and hold
Seller harmless from claims for personal injury, death or damage to personal
property arising directly or indirectly from or incident to, the use,
occupation, operation, maintenance, condition or abandonment of any of the
Interests on or after the Closing Date.  Likewise, Seller shall defend,
indemnify, save, discharge, release and hold Purchaser harmless from claims for
personal injury, death or damage to personal property arising directly or
indirectly from or incident to, Seller's use, occupation, operation,
maintenance, condition or abandonment of the Interests prior to the Closing Date
except as provided in Article 11.01.

     (b)  Purchaser shall defend, indemnify, save, discharge, release and hold
Seller harmless from claims for damage to the environment, environmental
cleanup, remediation, or environmental compliance, or abandonment of any of the
Interests, including without limitation, contamination of the property or
premises with Naturally Occurring Radioactive Materials (NORM), whether or not
any such claims result from conditions, actions or inactions present or existing
on, or before, or after the Closing Date.

     (c)  Purchaser shall (i) be responsible for any and all claims arising out
of the production or sale of hydrocarbons from the Interests or the proper
accounting or payment to parties for their interests therein, insofar as such
claims relate to periods of

                                       7
<PAGE>

time on or after the Effective Time and (ii) defend, indemnify, save, discharge,
release and hold Seller harmless from any and all such claims. These claims
include but are not limited to all valid overriding royalty, royalty or net
profit interest payments. Likewise, Seller shall (i) be responsible for any and
all claims arising out of the production or sale of hydrocarbons from the
Interests or the proper accounting or payment to parties for their interests
therein, insofar as such claims relate to periods of time before the Effective
Time and (ii) defend, indemnify, save, discharge, release and hold Purchaser
harmless from any and all such claims. These claims include but are not limited
to all valid overriding royalty, royalty or net profit interest payments.

                         ARTICLE 15. FURTHER ASSURANCE

     15.01  Performance of Obligations.  Seller and Purchaser shall use all
reasonable efforts to do all things necessary, proper or advisable to carry out
all of their respective obligations under this Agreement and to consummate and
make effective the purchase and sale of the Interests pursuant to this
Agreement.

     15.02  Further Conveyances and Assumptions.  After the Closing Date, Seller
and Purchaser shall execute, acknowledge and deliver all such further
conveyances, transfer orders, notices, assumptions and releases and such other
instruments, and shall take such further actions as may be reasonably necessary
or appropriate to fulfill their respective obligations set forth in this
Agreement.

     15.03  Governmental Requirements.   Purchaser shall expeditiously satisfy
any requirements of the United States Department of the Interior, Minerals
Management Service (MMS), or any other governmental entity having jurisdiction,
necessary for Purchaser to own and operate the Interests.  Purchaser obligates
itself to take any and all action required by the MMS or other regulatory agency
to obtain unconditional approval of the Assignment and Bill of Sale from Seller
to Purchaser, including but not limited to, the posting of any and all bonds or
security that may be required by the MMS in excess of its existing lease,
pipeline or area-wide bond.

                              ARTICLE 16. NOTICES

     All notices and consents to be given hereunder shall be in writing and
shall be deemed to have been duly given if delivered personally, sent by
facsimile with receipt acknowledged, three days after being mailed by registered
mail (return receipt requested), or delivered by a commercial courier to the
party at the address set forth below or such other address as any party shall
have designated for itself by ten (10) days' prior notice to the other party.

               Seller:

               Eugene Offshore Holdings, LLC
               1400 Smith Street
               Houston, Texas 77002

               Attn: Donna Lowery

                                       8
<PAGE>

               Phone: 713-853-1939
               Fax: 713-646-4039

               Purchaser:

               ATP Oil & Gas Corporation
               4600 Post Oak Place, Suite 230
               Houston, Texas 77027

               Attn: Gerald W. Schlief
               Phone: 713-622-3311
               Fax: 713-622-5101

                   ARTICLE 17. EXCLUSION AREA

     Seller and Purchaser have agreed that certain portions of the Lease will be
excluded from the sale and purchase provided in this Agreement, subject to the
terms and conditions set forth in the remainder of this Article.

     17.01  Exclusion Area.  For a period of two (2) years from the date of this
Agreement, Purchaser shall not have the right to drill any well, including re-
entry of the OCS-G 9574 JA-1 Well, within the SW/4 NW/4 SE/4, the E/2 NW/4 SE/4,
the NE/4 SE/4, the SE/4 SE/4, the E/2 SW/4 SE/4, and the NW/4 SW/4 SE/4 of the
Lease (hereinafter called the "Exclusion Area").

     17.02  New Well.  For a period of two (2) years from the date of this
Agreement, Seller (within this Article, the term Seller shall include the
assigns or designees of Seller) shall have the right to propose the drilling of
a new well within the Exclusion Area, or re-entry of only the existing OCS-G
9574 JA-1 Well, (hereinafter called the "New Well").

     17.03  Participation and JOA.  Operations in the New Well and the Exclusion
Area shall be governed according to the terms of the Joint Operating Agreement
(hereinafter called the "JOA") attached as Exhibit "D."  Immediately after
execution of this Agreement, Purchaser and Seller will prepare for execution and
sign the JOA.  If, for any reason, Purchaser and Seller do not sign the JOA,
then Exhibit "D" in its present form shall govern for the New Well and all other
joint operations in the Exclusion Area.

     17.04  Processing and Handling.  In the event that production of
hydrocarbons is obtained within the Exclusion Area as a result of the New Well
or after Seller earns an assignment as provided for in Section 17.05 below, such
production shall be handled and processed by Purchaser under the terms of the
Production Handling Agreement (hereinafter called the "PHA") attached as Exhibit
"E."  Immediately after execution of this Agreement, Purchaser and Seller will
prepare for execution and sign the PHA.  If, for any reason, Purchaser and
Seller do not sign the PHA, then Exhibit "E" in its present form shall apply for
production from the Exclusion Area.

     17.05  Earned Interest.  If, within two (2) years of the date of this
Agreement,

                                       9
<PAGE>

Seller proposes the New Well, and such well is subsequently drilled and logged,
Purchaser will, subject to the non-consent provisions of the JOA, assign a
seventy-five percent (75%) working interest and a sixty-one & 25/100 percent
(61.25%) net revenue interest in the Exclusion Area to Seller, limited to depths
from the seafloor to one-hundred (100) feet below the deepest depth drilled and
logged in the New Well. The assignment of these interests (hereinafter called
the "Earned Interest") shall include all rights and interests in each and every
well drilled in connection with the Earned Interest, including the OCS-G 9574
JA-1 Well if such well is re-entered as part of drilling the New Well, but shall
exclude other facilities and equipment on the lease, including any platforms and
pipelines. The Earned Interest assignment shall be in the form of Exhibit "F."

     17.06  Termination of Interest.  If Seller does not propose the New Well
within two (2) years of the date of this Agreement then Seller's right to earn
any interest in the Exclusion Area shall terminate.

     17.07  Notice of Exclusion Area.  In order that third parties will be on
notice of the obligations and duties created by this Article, Purchaser and
Seller will at Closing execute the Memorandum of Option attached as Exhibit "G."
The Memorandum of Option shall be placed of record with the United States
Department, Minerals Management Service, as well as in Iberia and St. Mary
Parishes, Louisiana.

     17.08  Survival.  The provisions of this Article shall survive Closing.

                           ARTICLE 18. MISCELLANEOUS

     18.01  Assumed Contracts.  This Agreement is made expressly subject to all
agreements, leases, easements, permits, commingling authorizations, and other
contracts which are of record or which Purchaser is aware of, including but not
limited to, those agreements described on Exhibit "A" (collectively, the
"Assumed Contracts").  Purchaser shall observe and comply with all covenants,
terms, and provisions of the Assumed Contracts.

     18.02  Entire Agreement.  This Agreement constitutes the entire agreement
between the parties and supersedes all prior agreements, understandings,
negotiations and discussions, whether oral or written, of the parties.  No
supplement, amendment, alteration, modification, waiver, or termination of this
Agreement shall be binding unless executed in writing by the parties hereto
after the execution of this Agreement.

     18.03  Severability.  In the event any covenant, condition, or provision
contained herein is held to be invalid by a court of competent jurisdiction,
such invalidity shall in no way affect any other covenant, condition or
provision contained herein.

     18.04  Waiver.  A waiver of any of the provisions of this Agreement shall
not constitute a waiver of any other provision hereof, nor shall such waiver
constitute a continuing waiver.

     18.05 Governing Law.  This Agreement, and all assignments and all
instruments

                                       10
<PAGE>

of conveyance executed in accordance with this Agreement, shall be governed by
and interpreted in accordance with the laws of the State of Texas, without
reference to conflict of laws principles.

     18.06  Dispute Resolution.  Any and all disputes, controversies, and
conflicts that arise from or in relation to this Agreement shall, to the extent
possible, be settled amicably by the parties hereto.  In the event of a failure
to make amicable settlement of any dispute hereunder, such dispute shall be
finally settled through arbitration, in Houston, Texas, before an arbitration
panel under the Commercial Rules of the American Arbitration Association ("AAA")
in effect as of the commencement of arbitration, except as modified or
supplemented by the rules set forth below.  In rendering any decision(s) and/or
award, the arbitration panel shall determine the rights and obligations of the
parties in accordance with the laws of the State of Texas.

Unless the parties agree that the arbitration panel shall be composed of a sole
arbitrator within ten (10) days after commencement of arbitration, the
arbitration panel shall be composed of three (3) arbitrators, appointed as
follows:

     A.  Each party shall have the right to appoint one (1) arbitrator.  The two
(2) party-appointed arbitrators will then together appoint the third arbitrator.
If one of the parties has appointed an arbitrator, and the other party has
failed to appoint the other arbitrator within fourteen (14) days from the
appointment of the first arbitrator, the arbitrator who has been appointed may
act as the sole arbitrator, and the decision(s) and/or award of such arbitrator
will be fully binding on the parties.  If the two arbitrators who have been
appointed fail to appoint the third arbitrator within fourteen (14) days from
the appointment of the second arbitrator, the third arbitrator shall be
appointed by AAA upon the petition of either party.

     B.  In the event the parties agree that the arbitration panel may be
composed of a single arbitrator, such arbitrator shall be appointed by agreement
of the parties.  If the parties are unable or fail to agree upon the arbitrator
within twenty (20) days after commencement of arbitration, the arbitrator shall
be appointed by AAA upon the petition of either party.

     C.  No arbitrator shall be appointed who is not independent of all parties
or who has an interest in the dispute or any previous involvement with the
subject matter of this Agreement.

     18.07  Limitation of Liability.  Seller and Purchaser covenant and agree
that the recovery by either party of any damages suffered or incurred by it as a
result of any breach by the other party of any provision of this Agreement shall
be limited to the actual damages suffered or incurred by the non-breaching party
and in no event shall the breaching party be liable to the non-breaching party
for any indirect, consequential, exemplary or punitive damages.

     18.08  Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

                                       11
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first above set forth.

SELLER:                                        PURCHASER:

EUGENE OFFSHORE HOLDINGS, LLC                       ATP OIL & GAS CORPORATION

By:  Joint Energy Development Investments              By:
     Limited Partnership, a Delaware limited              _____________________
     partnership, its sole member and manager             Gerald W. Schlief
                                                          Senior Vice President

By:  Enron Capital Management Limited
     Partnership, General Partner

          By:  Enron Capital Corp.
               General Partner

               By: ___________________
               Name: ________________
               Title: _________________

                                       12

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