Toreador to Begin Black Sea Exploration in July

Toreador says that Turkey is the primary focus of the company's 2004 exploration campaign and in July will begin to drill its first exploratory well, the Ayazli-1, in the shallow waters of the western Black Sea. The Turkish national oil company, TPAO, will be carried on the Ayazli-1 well and has an option to participate in additional wells on Toreador's Black Sea prospects on this acreage for a 51% working interest. Toreador is the operator and holds a 49% working interest.

"The Black Sea offers exploration opportunities that we want to take advantage of," said G. Thomas Graves, President and CEO, "and our solid working relationship with the Turkish government gives us a competitive advantage in the region. Our host partner views Toreador's cost-efficient plan to drill the Ayazli-1 well for about $4.5 million quite favorably and is extremely supportive of our efforts to help them develop their country's natural resources."

"Recently, the government awarded Toreador about 730,000 acres in the Thrace region between Bulgaria and the Bosporus Straits. We have a 100% working interest in these six permits, the majority of which is located in relatively shallow water depths of 300 feet or less. Initially, we will evaluate seismic information and other data on this acreage," Graves said.

In addition, Toreador has applied for 2.5 million acres in deeper water depths up to 5,700 feet. The acreage is prospective in the Cretaceous and Eocene formations. The block is immediately north of the acreage where the company will drill the Ayazli-1 well.