Toreador Resources Sees Decline in 1Q07 Revenue

Toreador Resources Corporation (NASDAQ: TRGL) announced first quarter 2007 financial results, and provides an operational update.

First quarter 2007 revenues decreased to $8.2 million from $9.8 million from the same period last year primarily due to lower commodity prices and a higher proportion of natural gas to oil sales. Toreador recorded an operating loss in the first quarter of 2007 of $13.1 million, compared to operating income of $2.9 million in the same period last year. Contributing factors to the operating loss were dry hole expenses for five wells of $8.2 million; exploration expenses of $2.1 million; costs related to the separation agreement between former CEO G. Thomas Graves III and the company of $2.2 million; and costs relating to the completed restatements of prior periods of $702 thousand.

For the three months ended March 31, 2007, the company reported a loss available to common shares of $8.8 million, or $0.55 per diluted share, compared to income available to common shares of $3.1 million in the first quarter of 2006, or $0.19 per diluted share. A foreign currency gain of $988 thousand and a tax benefit of $3.3 million partially offset operating expenses described above. Diluted weighted average shares outstanding in the first quarter of 2007 were 16.1 million, compared to 16.7 million diluted weighted average shares outstanding in the first quarter of 2006.

For the first quarter of 2007, Toreador reported earnings before interest, taxes, depreciation, amortization, and exploration expense (EBITDAX)(1) of $802 thousand compared to $5.3 million for the same period last year.

In the first quarter of 2007, Toreador's oil and natural gas production was approximately 177 MBOE compared to 176 MBOE during the same period last year. The average realized price on a BOE basis in the fourth quarter of 2006 was $45.61 per BOE compared to $55.11 per BOE in the first quarter of 2006. The average realized price of oil in the first quarter of 2007 was $51.48 per barrel compared to $57.42 per barrel in the first quarter of 2006. The average realized price of natural gas in the quarter ended March 31, 2007 was $4.86 per MCF, compared to $6.12 per MCF for the same period last year.


Third tripod installation begun offshore Turkey in Black Sea; first gas sales waiting for agreement between national pipeline company and distribution company.

In the South Akcakoca Sub-basin (SASB) project offshore Turkey in the Black Sea, the Ayazli tripod has been set on the sea floor and is being secured by pilings. Once the tripod is secured to the sea floor, the Ayazli-2A and -3A wells will be completed and prepared for tie-back operations. The tripod topsides are being fabricated in the construction yard in Izmet and will be towed out to location and installed when completed. The last step will be to tie back the two wells to the platform and tie the platform to the sub-sea pipeline. At that point the initial construction for the first phase of production will be complete.

The production center and the Akkaya platform are ready to deliver gas into the national grid. First gas sales from the Black Sea will commence once an agreement is concluded between BOTAS, the national gas pipeline company, and AKSA, the distributor buying gas from the SASB project. The agreement contains the terms for transportation tariffs and gas volume balancing between the two parties.

French exploration well declared dry hole

The Ichy-1 well, drilled in the Aufferville permit in the Paris Basin, did not encounter reservoir-quality limestone and was declared a dry hole.

Surface casing setting in Romanian well at 740 meters depth; total depth planned to be 2000 meters.

The Lapos-2 exploration well, targeting a large anticlinal feature in the Viperesti block in Romania, has been drilled to approximately 740 meters measured depth. Currently the rig is setting 9-5/8 inch diameter casing. Planned depth for the well is approximately 2,000 meters and drilling will resume once casing is set. The well is targeting a series of Miocene-age sands with unrisked potential reserves estimated to be between 6 and 40 MMBOE.

                                   Three months ended
                                        March 31,      Change  Change
($ millions, except where noted)     2007      2006    (units)   (%)
                                   --------- --------- ------- -------
Revenue                                $8.2      $9.8    (1.6)    -16%
Operating income (loss)               (13.1)      2.9   (16.0)   -552%
EBITDAX(1)                              0.8       5.3    (4.5)    -85%
Income (loss) available to common
 shares                                (8.8)      3.1   (11.9)   -384%
Basic income (loss) per share
 ($/share)                           $(0.55)    $0.20   (0.75)   -375%
Diluted income (loss) per share
 ($/share)                           $(0.55)    $0.19   (0.74)   -389%
Production (MBOE)                       177       176       1       1%
Average realized price ($/BOE)       $45.61    $55.11   (9.50)    -17%