Toreador Resources Sets 2005 Capital Budget

Toreador expects to spend approximately $46.0 million in 2005 on its exploration and development activities, primarily in Turkey, France and Romania. Previously, the company estimated 2005 capital spending would range from $16-20 million. The increase from Toreador's previous estimate is primarily due to the accelerated appraisal and development of the South Akcakoca gas project in Turkey's Black Sea. The company is targeting initial production from the project earlier in 2006 than originally anticipated. For reference, Toreador estimates 2004 capital expenditures will be about $16.0 million.

Toreador intends to fund 2005 spending primarily with cash on hand and cash generated from future operations, as well as funds contributed by drilling partners or procured from external capital sources, including but not limited to debt financings and private or public equity offerings.



In 2005, Toreador will allocate the majority of its capital investment, or $29.0 million, to projects in Turkey. In addition to resuming work on the Calgan-2 well, Toreador believes it will drill up to eight wells in the South Akcakoca area of the Black Sea where the company discovered natural gas last September. A $5.3 million 190-square-kilometer 3D seismic survey of the South Akcakoca area was recently completed, and the analysis of the seismic data should be finalized by early 2005. The drilling of the first well in the South Akcakoca gas basin should begin in April 2005.

The Turkish government has awarded Toreador two additional Black Sea blocks comprising about 236,000 acres in shallow waters offshore central Turkey. The company holds a 100% working interest in the acreage and will conduct an analysis of existing technical data on the blocks.

In 2005, Toreador expects to reprocess seismic data on its 730,000-acre Black Sea license in the Thrace region between Bulgaria and the Bosporus Straits. In 2006, the company anticipates following up with a 3D seismic survey of the area. Toreador has a 100% working interest in the license.

Onshore Turkey, the company plans to re-enter the Boyabat-2 well in the Sinop area northeast of Ankara. Toreador operates and holds a 100% working interest in six Sinop permits.


In 2005, Toreador has budgeted $10.0 million for French operating activities, including the drilling of multiple development wells in its 100%-owned fields that provide the foundation of the company's oil production. The company also expects to drill several exploratory wells on existing permits.

Toreador has scheduled a seven-well development program in the four-field Neocomian complex. In the Charmottes Field, the first of two horizontal development wells, the Charmottes-108, will be spudded in January. This well will immediately be followed by the drilling of a second well, the Charmottes-110. If these two wells are successful, the company could drill another 2-4 horizontal wells in the field in late 2005 and in 2006.

The completion of the construction of expanded production facilities in the field will accommodate these two wells and the Charmottes-109 well, the first successful horizontal development well drilled in the second quarter of 2004, as well as any future successful development wells.

During the second half of 2005, Toreador expects to drill up to six exploratory wells on its 183,000-acre Courtenay permit. A geochemical study that will supplement existing geophysical and subsurface data is nearing completion. The work will help to further identify potential well locations.


Toreador projects it will spend $6.0 million in Romania in 2005. The funds primarily will be committed to a multi-well rehabilitation program on the 1,325-acre Fauresti Block. The company should begin the re-entry of the first of six wells by year-end. If this program is successful, two new development wells also could be drilled. Toreador anticipates re-entering a well on the Viperesti Block and will continue to gather geological and geophysical information, as well as reprocess seismic data, on both the Viperesti and Moinesti blocks.

United States

The company's U.S. capital spending budget amounts to about $1.0 million. Toreador's goal in 2005 is to double U.S. proved reserves through continued working-interest participation in exploratory drilling ventures.


Toreador previously announced 2004 earnings guidance that called for fully diluted earnings per share of $0.14 to $0.24 for the fourth quarter of 2004 and $2.18 to $2.28 for the full-year 2004. The company now estimates fully diluted earnings per share net of dry hole costs will be $0.24 to $0.32 for the fourth quarter of 2004 and $2.28 to $2.36 for the full-year 2004.

The primary catalyst for the increases is Toreador's 2004 investment in an energy software start-up company called ePsolutions (EPS) based in Austin, Texas. A private company, EPS has developed and markets software used in the deregulated energy market. Toreador has invested approximately $750,000 in EPS for a 45% ownership in the company, which could increase fourth-quarter 2004 diluted earnings per share $0.07-0.10.

Toreador's ownership of EPS is in line with the company's strategy to leverage off of its core oil and gas business and make opportunistic investments in energy-related technology ventures. Toreador also has a 35% stake in, Inc., which provides the premier internet-based platform and system for individuals and companies to complete oil, gas and mineral acquisitions and divestitures.
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