Toreador Encounters Gas with Ayzali-1 Well Offshore Turkey

Toreador reports that gas shows have been encountered during the drilling of the Ayazli-1 exploratory well on the South Akcakoca prospect in the shallow waters of the western Black Sea offshore Turkey.

The Ayazli-1, spudded on July 12, encountered gas in the Miocene Kusuri formation, the well's primary objective. This Tertiary sequence tested gas in the nearby Akcakoca-1 well drilled in 1975 by the Turkish national oil company, TPAO. Evaluation of wireline logs is continuing to ascertain the interval's potential and to formulate a testing program that will be undertaken when the well reaches total depth.

Casing has been set in the Kusuri formation, and drilling is continuing in order to evaluate the well's secondary objective, a potential oil zone in a Mesozoic sand that was indicated on logs in the Akcakoca-1 well.

Toreador said no additional information will be available until the well reaches total depth of approximately 6,600 feet, which is expected by mid-August, is logged and the prospective interval is tested.

Located about five miles offshore, the Ayazli-1 is being drilled in 250 feet of water by the Prometeu jackup managed by Upetrom Group Management, a Romanian drilling company.

As operator of the well through its wholly owned subsidiary Madison Oil Turkey, Inc., Toreador is responsible for 75% of the Ayazli-1 costs and retains a 36.75% working interest in the well. As previously announced, Stratic Energy Corporation is funding 25% of the costs of the Ayazli-1 well to earn a 12.25% working interest in eight adjacent permits that comprise 962,000 acres. TPAO is being carried on the well for a 51% working interest and has an option to participate at this rate by funding its pro-rata share of costs related to future exploration, development drilling and subsequent production activities on the eight permits.