Toreador Reports Fiscal Year and 4Q06 Earnings



Toreador Resources Corporation (NASDAQ: TRGL) says financial results for year ended December 31, 2006 include year-on-year growth of 30% in revenue to $40.4 million on increased production and higher realized prices. Operating income for fiscal year 2006 decreased 15% to $5.3 million compared to operating income in fiscal year 2005 primarily due to increased exploration and development activity as well as non-cash expenses. Increases in 2006 expenses compared to 2005 expenses include: (1) a $2.7 million increase in lease operating expenses due to higher operating expense in France and startup of Romanian production; (2) a $1.0 million increase in exploration expenses due to activities in Hungary and Romania; (3) $1.4 million more in dry hole expense; (4) $2.3 million more in depreciation, depletion and amortization; and (5) a $2.3 million increase in expensing of stock compensation. Income available to common shares decreased by 77% to $2.3 million, or $0.15 per diluted share, primarily due to foreign exchange losses of $1.6 million (compared to a $2.4 million gain in 2005) and a tax provision for $1.2 million due to U.S. net operating loss carryforwards that are unlikely to be utilized in the future.

For the twelve months of 2006, Toreador's oil and gas production was approximately 741 thousand barrels of oil equivalent (MBOE) compared to 624 MBOE for the twelve months of 2005. The average realized price in 2006 was $53.96 per barrel of oil equivalent (BOE) compared to $49.86 per BOE for in 2005. The average realized price of oil for the twelve months of 2006 was $60.90 compared to $50.17 for the twelve months of 2005. The average realized price of natural gas for the year ended December 31, 2006 was $4.96 per thousand cubic feet (MCF) compared to $7.56 per MCF for the twelve months ended December 31, 2005.

FOURTH QUARTER RESULTS

($ millions, except
 where noted)             Q4 2006   Q4 2005  Change (units) Change (%)
                         --------- --------- -------------- ----------
Revenue                      $9.6      $8.5            1.1         13%
Operating income (loss)      (3.9)      1.4           (5.3)      -379%
EBITDAX(1)                    5.0       5.3           (0.3)        -6%
Income (loss) available
 to common shares            (7.7)      5.3          (13.0)      -245%
Basic income per share
 ($/share)                 $(0.50)    $0.35          (0.85)      -243%
Diluted income per share
 ($/share)                 $(0.50)    $0.32          (0.82)      -256%
Production (MBOE)             206       163             43         26%

Toreador recorded an operating loss in the fourth quarter of 2006 of $3.9 million, compared to operating income of $1.4 million in the same period last year. Although revenue increased to $9.6 million for the three months ended December 31, 2006 compared to $8.5 million for the same period last year, the following items contributed to the operating loss in the fourth quarter of 2006: (1) an increase of $2.5 million in dry hole expense; (2) an increase of $1.1 million in lease operating costs; (3) $500,000 in audit services expense associated with the restatements of prior periods; (4) a $700,000 increase in depreciation, depletion and amortization; and (5) an increase of approximately $600,000 in stock compensation expense.

For the three months ended December 31, 2006, the company reported a loss available to common shares of $7.7 million, or $0.50 per diluted share, compared to income available to common shares of $5.3 million in the fourth quarter of 2005, or $0.35 per diluted share. In addition to the increases in operating expense, a non-cash foreign exchange loss of approximately $3.4 million was recorded in the fourth quarter of 2006 (compared to a $2.2 million gain in the fourth quarter of 2005). Diluted weighted average shares outstanding in the fourth quarter of 2006 were 16.1 million, compared to 16.8 million diluted weighted average shares outstanding in the fourth quarter of 2005.

For the fourth quarter of 2006, Toreador reported earnings before interest, taxes, depreciation, amortization and exploration expense (EBITDAX)(1) of $5.0 million compared to $5.3 million for the same period last year.

In the fourth quarter of 2006, Toreador's oil and natural gas production was approximately 206 MBOE compared to 163 MBOE during the same period last year. The average realized price on a BOE basis in the fourth quarter of 2006 was $45.94 per BOE compared to $52.92 per BOE in the fourth quarter of 2005. The average realized price of oil in the fourth quarter of 2006 was $56.06 per barrel compared to $53.04 per barrel in the fourth quarter of 2005. The average realized price of natural gas in the quarter ended December 31, 2006 was $4.50 per MCF, compared to $8.73 per MCF for the same period last year.

                         Twelve months ended
                          December 31, 2006
                         -------------------
($ millions, except
 where noted)              2006      2005    Change (units) Change (%)
                         --------- --------- -------------- ----------
Revenue                     $40.4     $31.1            9.3         30%
Operating income              5.3       6.2           (0.9)       -15%
EBITDAX(1)                   22.3      16.6            5.7         34%
Income available to
 common shares                2.3       9.9           (7.6)       -77%
Basic income per share
 ($/share)                  $0.15     $0.69          (0.54)       -78%
Diluted income per share
 ($/share)                  $0.15     $0.65          (0.50)       -77%
Production (MBOE)             741       624            117         19%

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