Toreador Posts Second-quarter Loss

Toreador Resources reported second quarter and first half 2007 financial results, and provided an operational update.

SECOND QUARTER 2007 FINANCIAL RESULTS

Second quarter 2007 revenues increased to $10.0 million from $8.4 million in the same period last year, a positive change of 19%, primarily due to the start of production from the South Akcakoca Sub-basin natural gas project offshore Turkey and the Fauresti Field in Romania. For the quarter ended June 30, 2007, Toreador reported earnings before interest, taxes, depreciation, amortization, and exploration expense (EBITDAX, a non-GAAP measure(a)) of $5.1 million compared to $5.4 million for the same period last year.

Toreador recorded an operating loss in the second quarter of 2007 of $10.2 million, compared to operating income of $1.9 million in the same period last year. Compared to the prior year period, second quarter 2007 operating expenses increased primarily due to dry hole expenses of $9.1 million; an increase in depreciation, depletion and amortization of $4.3 million and lease operating expense of $931 thousand due to the start of production in Turkey and Romania; an increase in exploration expense of $1.6 million; an increase in G&A expense of $686 thousand; and a loss of $606 thousand on oil derivative contracts. These expense increases were partially offset by a gain on the sale of three investments in unconsolidated entities of approximately $3.5 million. G&A expense net of stock compensation expense was $2.2 million in the second quarter of 2007.

For the three months ended June 30, 2007, the company reported a loss available to common shares of $25.1 million, or $1.32 per diluted share, compared to income available to common shares of $1.5 million in the second quarter of 2006, or $0.09 per diluted share. A non-cash foreign currency translation loss of $16.8 million at the operating subsidiary level (primarily due to the decline in value of the U.S. dollar causing a translation loss when converting the foreign currency balance sheets) and the increase in operating expenses described above were the primary causes of the earnings decline. Diluted weighted average shares outstanding in the second quarter of 2007 were 19.0 million, compared to 16.6 million diluted weighted average shares outstanding in the second quarter of 2006.

For the first six months of 2007, revenues increased to $16.8 million compared to $16.6 million for the first six months of 2006 primarily due to new natural gas production in Turkey and Romania which was partially offset by price declines. In the first half of 2007 EBITDAX(a) was $4.7 million, compared to $10.2 million for the first half of 2006. An operating loss of $24.1 million for the first six months of 2007 was primarily due to the factors described in the second quarter results, compared to a $4.1 million operating gain in the first six months of 2006. G&A expense net of stock compensation expense and executive severance expense was $5.4 million year-to-date.

For the six months ended June 30, 2007, a loss available to common shares of $33.9 million was recorded, or $1.93 per diluted share, compared to income available to common shares of $4.6 million, or $0.28 per diluted share for the first six months of 2006.

OPERATIONAL AND STRATEGIC UPDATE

Recently announced agreement to sell US oil properties completes six-month transition period under new CEO Nigel Lovett and positions the company for future growth

As announced earlier this week, the company has entered into an agreement to sell its remaining U.S. producing properties, effective September 1, for approximately $19.1 million and anticipates recording a gain of approximately $9.0 million in the third quarter. Coupled with the sale of the company's interests in EnergyNet, ePsolutions, and Capstone Royalty, LLC, in the second quarter, which resulted in proceeds of approximately $6.2 million and a gain of $3.5 million, the transactions complete a six-month period of transition under CEO Nigel Lovett, who was elected to his position at the end of January. During this time, in addition to divesting itself of non-core assets, the company has strengthened its balance sheet through a financing in the second quarter; established a strong relationship with the International Finance Corporation; brought production from the Black Sea on stream; and cemented its strategy of exploring in net hydrocarbon importing European countries with demonstrated reserve potential and, in the case of natural gas, are currently dependent on Russia for supplies.

Exploration well spudded in Thrace area offshore Turkey in the Black Sea, approximately 200 kilometers west of the South Akcakoca Sub-basin project area.

Drilling operations have begun on the Karaburun-1 exploration well, located approximately 19 kilometers offshore from the Thrace area of Turkey in the Black Sea and 200 kilometers west of the company's existing discoveries in the South Akcakoca Sub-basin. The well, which is located in waters approximately 80 meters deep, is the first exploration well drilled on the 800,000-acre Thrace Black Sea permit, which is located in Turkish coastal waters between Bulgaria and the Bosporus. The Karaburun-1, with a projected total depth of approximately 1500 meters, is targeting prospective Eocene-age carbonate reef and sandstone formations that produce both gas and oil onshore Turkey. The prospect's P50 reserve estimate is approximately 20 million BOE. Toreador is the operator and holds a 50% working interest in the permit, with joint venture partner HEMA (a Turkish industrial conglomerate) holding the remaining 50%. The well is expected to take four to six weeks to drill and test.

Work progresses on pipeline spur hookup to Dogu Ayazli platform; construction of topsides for Ayazli platform nearing completion.

In the South Akcakoca Sub-basin project offshore Turkey in the Black Sea, operator TPAO estimates that the pipeline spur to the Dogu Ayazli platform will be hooked up in three to four days and production from the platform could start by the end of next week.

The topsides for the Ayazli platform are nearly finished, with equipment testing and remedial painting scheduled for completion within the week. A schedule for the load out and installation will be announced once the final work has been accepted. Once on location, the installation, tie-back and commissioning process should take roughly three weeks to complete.

Including production from the Akkaya platform, which has been online since late May, the three platforms are expected to produce collectively 50 MMCFD to the 100% interest. Toreador has a 36.75% interest in the joint venture with partners TPAO holding a 51% interest and Stratic Energy holding a 12.25% interest.

Seismic acquisition program begun in Romania

A seismic acquisition program has begun in Romania with approximately 150 kilometers of 2-D being shot over parts of the Viperesti block. A 110- kilometer program will be conducted over the Moinesti block, with further acquisition planned over the Fauresti Field. The new seismic will be combined with existing data to define both exploration prospects and development opportunities.

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