For the first quarter of 2006, Toreador reported income available to common shares of $1.2 million, or $0.08 per diluted share, compared to $1.0 million in the first quarter of 2005, or $0.08 per diluted share. Diluted weighted average shares outstanding in the first quarter of 2006 were 16.3 million, compared to 14.1 million diluted weighted average shares outstanding in the first quarter of 2005.
Earnings before interest, taxes, depreciation, amortization and exploration expense (EBITDAX)(1) was $4.8 million in the three months ended March 31, 2006 compared to $2.5 million for the same period last year. Total revenues for the three months ended March 31, 2006 were $9.8 million, compared to $6.4 million for the same period in 2005.
Operating income in the first quarter of 2006 was $0.8 million, compared to $1.2 million in the first quarter of 2005. A non-cash loss contingency of $1.5 million was recorded on an insurance receivable related to the previously announced re-drilling of two wells in the Ayazli structure. This is a required reserve in the event that the insurance carrier does not pay the full amount of claims. However, management believes the full amount will ultimately be recovered.
"Operating results for this quarter improved significantly compared to last year," said G. Thomas Graves III, President and Chief Executive Officer of Toreador, "as we begin to see some positive effects from our planned production growth this year. During the quarter we had good success with the drill bit in Turkey and will soon begin an exploration well in Hungary. During the course of the year we will have active exploration programs in all of our core portfolio holdings while we simultaneously bring on new production from Romania, Hungary and Turkey. We are at the beginning of a period of fundamental change in our reserve base and production profile as we concentrate on executing our growth plans."
In the first quarter of 2006, Toreador's oil and gas production was approximately 176 thousand barrels of oil equivalent (MBOE) compared to 149 MBOE during the same period last year. The average realized price on a BOE basis in the first quarter of 2006 was $55.11 per BOE compared to $42.59 per BOE in the first quarter of 2005. The average realized price of oil in the first quarter of 2006 was $57.42 per barrel compared to $43.49 per barrel in the first quarter of 2005. The average realized price of natural gas in the quarter ended March 31, 2006 was $6.12 per thousand cubic feet (Mcf), compared to $6.17 per Mcf for the same period last year.
Offshore Turkey in the Black Sea, the Akkaya-2 development well tested 6.2 million cubic feet per day of dry gas through a 32/64" choke at a flowing wellhead pressure of 1,077 psi. The production test was from two zones totaling approximately 16 meters (53 feet) out of 21 meters (69 feet) of net pay in the well.
The Akkaya-3 development well encountered approximately 23 meters (75 feet) of net pay in 3 zones from 843 meters (2,166 feet) to 1,212 meters (3,977 feet) true vertical depth, in line with expectations, and will be tested as soon as operations on the Akkaya-2 well are finished. The Akkaya-3 was drilled to a bottom hole location approximately 1,150 meters (3, 774 feet) east of the Akkaya-1A well.
The Bayhanli-1 exploratory well was spudded during the second week in April, and is expected to reach total depth in the next two to three weeks. The well is testing a prospect to the east of the Dogu Ayazli structure located along the same thrust fault trend in the South Akcakoca Sub-basin project area.
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