Toreador Sells U.S. Properties for $19.1 Million in Cash
Toreador Resources has closed the previously announced sale of its U.S. properties for approximately $19.1 million in cash. Net proceeds from the sale will be added to working capital, after a voluntary $5 million loan prepayment to the International Finance Corporation (IFC). As a result of the voluntary prepayment, $5 million will be added to the company's currently available credit facility with the IFC. With the $5 million addition, the company will have approximately $20 million availability under the current credit agreement.
The U.S. properties, which primarily consisted of non-operated working interests in approximately 700 wells in five states, had approximately 1.4 million barrels of oil equivalent proved reserves at the end of 2006. Collectively, the U.S. properties generated approximately $900 thousand in cash flow from operations per quarter. The book value of the properties was approximately $10.3 million, or approximately 4% of the aggregate book value of the company's oil and gas properties. A gain of $9.0 million is expected be recorded on the sale in the company's third quarter results. Taxes due on the gain are expected to be offset by tax loss carry forwards.
Toreador Resources Corporation is an independent international energy company engaged in the acquisition, development, exploration and production of natural gas, crude oil and other income-producing minerals. The company holds interests in developed and undeveloped oil and gas properties in France, Hungary, Romania and Turkey.
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