Toreador has completed the sale of a 26.75% interest in the South Akcakoca Sub-Basin ("SASB") project and associated licenses located in the Black Sea offshore Turkey, to Petrol Ofisi for US $55 million.
In accordance with the revised assignment announced on February 3, 2009, $50 million of the proceeds was paid by Petrol Ofisi at today’s closing and the remaining $5 million will be paid unconditionally on September 1, 2009.
As part of Toreador’s new corporate platform announced on February 23, 2009, and in accordance with the covenants of the International Finance Corporation ("IFC") revolving credit facility, proceeds of the Petrol Ofisi sale will be used to repay fully the outstanding balance of $36 million, which includes $6 million of additional compensation, accrued interest and fees. The IFC facility will be discharged in full as a result. Remaining net proceeds from the sale will be used to repurchase a portion of the Company's outstanding convertible bonds and fund this year’s capital program to meet minimum commitments associated with the Company’s licenses.
Mr. Craig McKenzie, CEO of Toreador, said, "We are very pleased with the result of this transaction and in our ability to eliminate a significant portion of the Company's debt. Going forward, we will continue to aggressively work to achieve our strategic priorities for 2009, which include divesting non-core assets, the continued reduction of debt, maintaining financial discipline, and improving our core operations. Through these proactive steps, we are repositioning Toreador to deliver enhanced value for all shareholders."
The Company has retained Stellar Energy Advisors, based in London, UK, to manage an open bid process to sell its remaining 10% interest in the SASB, in addition to its onshore production, and 2.916 million net acres in exploration licenses that are currently held (as of 1/1/09) and 1.085 million net acres that are pending approvals.
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