Toreador Closes Acquisition of Pogo Hungary
Toreador Resources has closed its previously announced acquisition of Pogo Hungary Ltd. The adjusted purchase price was $9 million. The acquisition adds exploration permits covering approximately 764,300 acres, a significant amount of casing and tubulars and an evergreen tax loss in excess of $20 million. In addition the acquisition includes a partially delineated gas field with two wells ready to produce upon the completion of a pipeline. The field also contains several wells that may be capable of production upon completion. Toreador intends to begin initial production by the end of 2005.
The Company completed testing the Charmottes-108H and plans to bring it on production pumping at approximately 320 barrels of oil per day (BOPD) after completing the construction of temporary storage facilities on the Charmottes 4 drilling pad. The Charmottes-108H is the first of two horizontal wells drilled earlier this year in the Charmottes Field in the Paris Basin. The second well, the Charmottes-110H, is scheduled to begin testing next week with production expected to begin in July 2005. The Company is operator and owns a 100% working interest in the Charmottes permits.
The Company completed testing the third well re-entered in Phase I of rehabilitation operations on the Fauresti Block. The Fauresti-187 tested at 1.3 MMcf per day with 11 barrels of condensate and 33 barrels of water on a 1/2-inch choke. The second well re-entered and re-completed, the Fauresti-184, tested at 1.75 MMcf of gas per day with 10 barrels of condensate and 59 barrels of water on a 1/2-inch choke. During preliminary testing, the Fauresti-184 had flow rates as high as 2.6 MMcf per day with no choke.
The rig will be moved from the Fauresti-187 to the -179, the first well re-entered during Phase I. The Fauresti-179 was unable to test the Dogger Formation successfully due to communication with the underlying aquifer behind casing. If further attempts to isolate the formation are unsuccessful, the Company plans to move uphole and perforate the Sarmatian Formation before moving the rig to the Fauresti-198 for the fourth well re-entry.
Turkey -- Onshore
In the onshore Sinop area northeast of Ankara on the Black Sea coast, operations have been completed on the re-entry of the Boyabat-2. Production was not established due to failure of the original cement job behind casing. During re-entry operations, the mud weight was cut by gas entering the well. However, attempts to test the prospective zones were unsuccessful due to water communication behind casing. The Company has temporarily abandoned the well pending further evaluation. The Company may elect to drill an offset to the Boyabat-2. Toreador operates and owns a 100% working interest in six Sinop permits.
Turkey -- Offshore
A Guardian II production sleeve is being installed on the Akkaya-1. The "Prometheus" jackup rig has been moved to the Ayazli-3 location to drill an offset well to the Ayazli-1 discovery well. The Ayazli-3 was spudded on June 15, 2005.
Toreador-Turkey operates and owns a 36.75% working interest, TPAO owns a 51% working interest and Stratic owns a 12.25% working interest in the Western Black Sea permit area.
Based on the results to date of wells drilled and completed in
France, Romania and Turkey, Toreador can affirm previously provided
guidance that at year-end 2005 production company-wide will range from
3,000 to 4,500 barrels per day.
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