Toreador Revises Capital Budget
Toreador Resources reports a revised capital budget for the year ended December 31, 2005 and a preliminary capital budget for the year ended December 31, 2006. Based on the recent drilling success in the western Black Sea offshore Turkey and delineation and exploration prospects available in Hungary, Toreador is revising its estimated full year capital spending for 2005 to approximately $71 million from a previously announced estimate of $53 million, and currently expects its 2006 capital spending to be approximately $79 million.
In Turkey, TPAO, the Turkish national oil company and 51% partner in Toreador's western Black Sea permit area, has expressed a desire to accelerate the delineation and development program in the South Akcakoca sub-basin and the exploration program in the adjacent Eregli sub-basin. In addition to the jack-up rig currently under contract, a second jack-up rig has become available. Additionally, the Company believes it may be able to contract for a drillship that would be available for the deep water portion of the sub-basin along the Akcakoca ridge. Therefore, it is necessary to revise the Company's 2005 capital budget for Turkey to $49 million with approximately $34 million to be spent in the second half of 2005. The 2006 capital budget for Turkey is currently estimated at $33 million.
In Hungary, a detailed evaluation of the Company's recently acquired permit over two exploration blocks has identified one delineated prospect and several leads which are expected to develop into drillable prospects by early 2006. The previous operator of the permits had acquired approximately $18 million worth of 2D and 3D seismic data over a five-year period. In addition, the Company believes that two gas wells drilled by the previous operator, each of which tested at flow rates up to four million cubic feet of gas per day, can be put on production upon completion of a gas contract and construction of a processing facility and pipeline tie-in. The 2006 capital budget for Hungary is estimated at $14 million.
In France, the revised estimate of capital spending in 2005 is $16 million, of which $9 million is planned to be spent in the second half of the year. The 2006 budget is currently estimated to be $15 million, and includes the drilling of two horizontal wells and one Donnmarie well in the Charmottes Field in the Paris Basin; exploration in the Company's Aufferville permit; completion of the Courtney permit exploration program; and the drilling of seven development wells in the Neocomian Field complex.
In 2005, capital spending in Romania is now estimated to be approximately $6 million and the preliminary 2006 capital budget is estimated at $16 million. In the second half of 2005, three wells in the Fauresti permit will be re-entered and another well re-entry is planned in the Viperesti permit. The 2006 plan includes $8 million in 2D seismic acquisition programs on two exploration permits and the Fauresti permit; a development well and six more re-entry wells in the Fauresti permit; and an exploration well in the Viperesti permit planned for the second half of 2006.
The Prometeu jackup is preparing to move to the Cayazli-1 well location. The anticipated spud date of the well, which is being drilled to evaluate a structure located to the south southeast of the Akkaya-1 discovery well, is estimated to be in early September. The well has been designed to accomodate a dual completion string if the drilling results warrant it. In a dual completion, two formations can be produced simultaneously through separate production strings, increasing total production rates from the well.
Construction is in progress on a drilling pad located on the southeast flank of the Charmottes field in the Paris basin, and it is anticipated the previously announced Donnmarie exploitation well will spud in mid-September. The Triassic-age formation is expected to flow from 200 to 250 BOPD, based on results from the Charmottes-1 and -2 wells which were completed in the Donnmarie during the 1980s.
In the Nemours permit, an exploration well is expected to spud in the first week of October. Toreador has a 33% working interest in the well which is being operated by Lundin Petroleum.
In the Charmottes Field, operations are being conducted to optimize production parameters on the recently-drilled Charmottes-108H and 110H horizontal wells. The wells will be producing at minimal rates until remedial work is finished, with the completion date estimated to be in the fourth quarter.
In the Fauresti permit rehabilitation program, the fourth of six re-entry wells planned for this year has been perforated and is being prepared for testing. The remaining two re-entries in the Fauresti permit, as well as a re-entry well in the Viperesti permit, are planned for the fourth quarter of this year. Production from the Fauresti program is expected at the end of 2005 or early 2006. Geological and geophysical work is ongoing for exploration programs planned for 2006.
Prospect evaluation is ongoing and is expected to continue through
the end of the year. Based on the work done to date, a prospect has
been identified for drilling in early 2006 and the Company expects to
drill two additional exploration wells later in 2006. The prospect
which is expected to be drilled in the first quarter of 2006 is
located in the northeast corner of the Tompa block, situated between
two existing fields with combined reserves of approximately 300
billion cubic feet of natural gas.
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