Toreador Reports Strong Second Quarter



Toreador Resources Corp. on Tuesday announced its financial results for the second quarter of 2006.

SECOND QUARTER RESULTS

For the second quarter of 2006, Toreador reported income available to common shares of $2.5 million, or $0.15 per diluted share, compared to $1.8 million in the second quarter of 2005, or $0.12 per diluted share. Diluted weighted average shares outstanding in the second quarter of 2006 were 16.8 million, compared to 15.6 million diluted weighted average shares outstanding in the second quarter of 2005.

Earnings before interest, taxes, depreciation, amortization and exploration expense (EBITDAX)(a) was $5.3 million in the three months ended June 30, 2006 compared to $3.1 million for the same period last year. Total revenues for the three months ended June 30, 2006 were $10.3 million, compared to $7.2 million for the same period in 2005.

Operating income in the second quarter of 2006 was $2.8 million, compared to $1.7 million in the second quarter of 2005.

"Oil prices in Europe were quite favorable during the quarter," said G. Thomas Graves III, President and Chief Executive Officer of Toreador, "with Brent spot prices sometimes exceeding West Texas Intermediate. Forward oil strip prices have also been firming up in Europe, which is a positive leading indicator for the economics of our third and fourth quarter exploration programs in Romania and France."

In the second quarter of 2006, Toreador's oil and gas production was approximately 166 thousand barrels of oil equivalent (MBOE) compared to 154 MBOE during the same period last year. The average realized price on a BOE basis in the second quarter of 2006 was $61.84 per BOE compared to $46.26 per BOE in the second quarter of 2005. The average realized price of oil in the second quarter of 2006 was $65.06 per barrel compared to $47.31 per barrel in the second quarter of 2005. The average realized price of natural gas in the quarter ended June 30, 2006 was $6.67 per thousand cubic feet (Mcf), compared to $6.69 per Mcf for the same period last year.

A comparison of this year's second-quarter results with last year's follows.

($ millions, except where        Q2     Q2
 noted)                         2006   2005  Change (units) Change (%)
                               ------ ------ -------------- ----------
Revenue                        $10.3   $7.2            3.1         43%
Operating income                 2.8    1.7            1.1         65%
EBITDAX(a)                       5.3    3.1            2.2         71%
Income available to common
 shares                          2.5    1.8            0.7         39%
Basic income per share
 ($/share)                     $0.16  $0.13           0.03         23%
Diluted income per share
 ($/share)                     $0.15  $0.12           0.03         25%
Production (MBOE)                166    154             12          8%

RESTATED FIRST QUARTER 2006 RESULTS

Toreador also announced today that it has restated financial results for the first quarter of 2006 to reverse a non-cash loss contingency on an insurance receivable of $1.5 million. The restatement also includes the capitalization of interest expense of approximately $631 thousand associated with Toreador's development operations in Turkey. The net effect of the restatement was an increase in operating income and income available to common shares that is described in the table below:

                                        As
($ millions, except        Restated  Reported
  where noted)             Q1 2006   Q1 2005 Change (units) Change (%)
                           -------- --------- -------------- ---------
Operating income              2.3       1.2        1.1         92%
Income available to
 common shares                2.9       1.0        1.9        190%
Basic income per share
 ($/share)                  $0.19     $0.08       0.11        138%
Diluted income per share
 ($/share)                  $0.18     $0.08       0.10        125%

Restated operating income for the first quarter of 2006 was $2.3 million, an increase of 92% from the first quarter of 2005. Restated income available to common shares for the quarter ended March 31, 2006 was $2.9 million, or $0.18 per diluted share, up 125% from the same period last year.

SIX MONTHS RESULTS

Financial results for the first six months of 2006 include increases in operating income of 76%, EBITDAX(a) of 80%, and income available to common shares of 96% compared to the first six months of 2005. Revenues increased 48% on production growth of 13% in the first six months of 2006 compared to the same period in the prior year.

                                Six months
                                  ended
                                 June 30,
                               -------------
($ millions, except where
 noted)                         2006   2005  Change (units) Change (%)
                                -----  ----- -------------- ----------
Revenue                        $20.1  $13.6            6.5         48%
Operating income                 5.1    2.9            2.2         76%
EBITDAX(a)                      10.1    5.6            4.5         80%
Income available to common
 shares                          5.5    2.8            2.7         96%
Basic income per share
 ($/share)                     $0.35  $0.21           0.14         67%
Diluted income per share
 ($/share)                     $0.33  $0.20           0.13         65%
Production (MBOE)                341    303             38         13%

For the first half of 2006, Toreador's oil and gas production was approximately 341 MBOE compared to 303 MBOE for the first half of 2005. The average realized price in the first six months of 2006 was $58.39 per BOE compared to $44.45 per BOE for the first six months of 2005. The average realized price of oil in the first half of 2006 was $61.18 compared to $45.42 for the same period a year ago. The average realized price of natural gas for the six months ended June 30, 2006 was $6.35 per MCF compared to $6.44 per MCF for the six months ended June 30, 2005.

MID-YEAR RESERVE UPDATE

Toreador today provided an interim updated estimate of proved and probable reserves at June 30, 2006, and included an updated study of possible reserves and the unrisked reserve potential of the South Akcakoca Sub-basin natural gas project offshore Turkey in the Black Sea. The estimates were provided by independent petroleum engineers LaRoche Petroleum Consultants, Ltd.

Table:  Interim Update to Toreador Reserves Estimates as of June 30,
        2006

                                      Net Reserves
                                   -------------------
                                       Oil       Gas       NPV (1)
 Reserve Category                     (MBO)    (MMcf)   ($thousands)
-----------------------------------------------------   -------------
Proved Developed Producing             8,064    7,810       $176,732
Proved Developed Non-producing           446      174          7,144
Proved Undeveloped                     3,297   15,481        106,040
------------------------------------------------------       --------
Total Proved                          11,807   23,465        289,916
======================================================       ========
Total Proved MBOE                     15,718

Probable                               5,018    4,561         81,868
------------------------------------------------------       --------
Probable MBOE                          5,778

Total Proved + Probable               16,825   28,026       $371,784
------------------------------------------------------       --------
Proved +Probable MBOE                 21,496

Notes:
------
(1) Pre-tax Net Present Value discounted at 10%

At mid-year, Toreador's estimated proved reserves were approximately 15.7 million BOE, up approximately 700 thousand BOE from the company's proved reserves of approximately 15.0 million BOE as of December 31, 2005. The pre-tax net present value discounted at 10% of the estimated proved reserves as of June 30, 2006 was approximately $289.9 million compared to approximately $224.8 million as of December 31, 2005.

Probable reserves at June 30, 2006 were estimated to be approximately 5.8 million BOE with a pre-tax net present value discounted at 10% of approximately $81.9 million. Total proved and probable reserves at June 30, 2006 were estimated to be approximately 21.5 million BOE with a pre-tax net present value discounted at 10% of approximately $371.8 million.

Table:  Natural Gas Reserves Estimates in the South Akcakoca Sub-
basin As of June 30, 2006
                                            Reserve Estimates (Bcf)
                                        -----------------------------
Reserve Category                          High End   Likely  Low End
---------------------------------------------------- ------ ---------
Proved                                           46     46        46
Probable                                         14     14        14
Possible                                          6      6         6
Unrisked Potential                              432    127        35
---------------------------------------------------- ------ ---------
Total                                           498    193       101
==================================================== ====== =========
Toreador 36.75% Interest                        183     71        37

In the South Akcakoca Sub-basin natural gas project, LaRoche provided an update to the estimate of total natural gas reserves (which includes proved, probable, possible and unrisked potential reserves). On a gross basis, the high-end case was estimated to be approximately 498 BCF, the likely case was estimated to be approximately 193 BCF, and the low-end case was estimated to be 101 BCF. These estimates compare favorably to Toreador's initial internal estimates of 350 BCF gross for the South Akcakoca Sub-basin project. To Toreador's 36.75% interest, the high, likely and low estimates correspond to 183 BCF, 71 BCF and 37 BCF, respectively.

LaRoche arrived at these estimates using the results from nine successful wells and two dry holes drilled since September 2004, as well as data from 2D and 3D seismic surveys conducted in the South Akcakoca Sub-basin.

"The South Akcakoca Sub-basin project continues to drill out as well or better than we expected," commented Graves. "The Ayazli-Akkaya fault trend has provided such positive results that the joint venture partners added three additional wells and a third production tripod over what was originally budgeted as we began the fiscal year. Nonetheless, we still anticipate that the bulk of the reserves in this 50,000 acre project area (out of almost 1.0 million acres in the Western Black Sea Permit) will be found in the slightly deeper waters along the Akcakoca trend. We are starting to investigate whether these trends extend to the west and will begin to evaluate the prospects in the Eregli Sub-basin which is located immediately adjacent to the northeast later this year."

OPERATIONAL UPDATE

In the South Akcakoca Sub-basin project offshore Turkey in the Black Sea, the Akkaya production tripod has been successfully set. The tripod is currently being secured to the sea floor using pilings. Two more tripods will be set on the Dogu Ayazli and Ayazli structures over the next few months in the first phase of development in the project.

Toreador Resources Corp. is an independent international energy company engaged in the acquisition, development, exploration and production of natural gas, crude oil and other income-producing minerals. The company holds interests in developed and undeveloped oil and gas properties in France, Hungary, Romania and Turkey. In the United States, Toreador primarily owns working interests in five states.

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