Toreador Increases 2004 Capital Budget

Toreador Resources has increased its 2004 budget for capital expenditures from approximately $7.0 million to about $9.0 million due to additional infrastructure costs for its Paris Basin fields in France, spending for development drilling on its U.S. nonoperated working-interest properties and incremental costs for the Ayazli-1 well in the Turkish Black Sea. The company still anticipates the majority of the funds will be allocated to activities in Turkey and France.

Toreador plans to fund its spending primarily with net cash flow from operating activities, which it estimates will be about $6.0 million in 2004, as well as with excess proceeds from its U.S. asset sale and funds procured from drilling partners or external capital sources.

"Our exploration and development activities in France this year alone could add as much as five million barrels to proved reserves, a 35% increase over total company reserve levels at January 1, 2004," said Graves. "Our exploration program in France and Turkey includes attractive prospects that will provide significant upside potential if our exploratory drilling is successful."

Toreador believes its 2004 exploitation work in France alone will enable it to replace the daily production of approximately 675 barrels of oil per day (BOPD) related to the sale of its domestic mineral and royalty portfolio in January 2004 by the beginning of 2005. Since January 1, 2004, the company's extensive rehabilitation program in France has increased production about 200 BOPD, bringing current production to 1,800 BOPD.