Toreador Resources Corporation provided an operational update.

Drilling operations begun on Hungarian exploration well; joint venture agreement completed for deep gas play

Toreador says that drilling operations have begun on the Tik-1 exploration well in the company's Szolnok block in Hungary. The well is planned to reach a total depth of over 2,250 meters and is testing the hydrocarbon potential of the Pannonian, Miocene and pre-Miocene formations. Operations are expected to take four to six weeks to complete.

An approximately 150 square kilometer 3-D seismic survey is also underway on the Szolnok block. The survey is being acquired to develop leads into prospects along a structural high between two sub-basins on the southern edge of the Szolnok block. It is anticipated that field operations will take approximately six weeks.

As previously announced, the Tik-1 well and the 3-D seismic survey are part of a $10 million exploration program (including an additional exploration well to be drilled later) in Toreador's Szolnok exploration block. In return for funding the program, four joint venture partners will earn an aggregate 75% working interest in the block. Toreador is being carried for its 25% working interest and is the operator.

In Toreador's Tompa exploration block, the previously announced joint venture to drill, stimulate and test a delineation well to evaluate a deep gas play has been finalized. A private European energy fund will drill, case and test a well projected to cost up to $16 million in return for a 75% interest in any unconventional hydrocarbon resources discovered by the joint venture in the Kiskunhalas Trough area located in the northwest corner of Toreador's Tompa block. Toreador is being carried for its 25% interest in the well. Operations are expected to commence in the fourth quarter of 2008, subject to the securing of a drilling rig.

Production from South Akcakoca Sub-basin project now at approximately 30 million cubic feet of gas per day from three platforms

Offshore Turkey in the Black Sea, production from all three platforms in the South Akcakoca Sub-basin (SASB) project is at approximately 30 million cubic feet of gas per day from seven wells, two on the Ayazli platform, two on the Dogu Ayazli platform, and three on the Akkaya platform. Production from the Ayazli platform was initiated in mid-March and the Dogu Ayazli-2 well was recently re-perforated to increase production volumes. In March the wellhead price for SASB natural gas sales was approximately $9.50 per thousand cubic feet, as the Turkish lira weakened against the U.S. dollar.

Tags: Toreador Resources Corporation