Toreador Resources provides operational update on Hungarian joint venture, Turkish joint venture and Romanian joint venture.

Hungarian joint venture updates

In Toreador's Szolnok block, joint venture partner Rohol Aufuchungs Aktiengesellschaft ("RAG," a public Austrian exploration and production company) has increased its working interest from 16.25% to 59.5% by purchasing interests from the other joint venture partners, including Toreador. Toreador has retained a 15% working interest in the joint venture. Current plans call for a new 3D seismic program to be shot in the southern portion of the Szolnok block and two firm wells and two optional wells to be drilled to test Pannonian targets, all anticipated to be completed before the end of March 2009. Toreador intends to contribute materials in its equipment and tubulars inventory to satisfy its financial commitment to the well costs.

In the Tompa block, a preliminary schedule for the previously announced unconventional deep gas test has been developed, with drilling scheduled to begin in December and long-term testing expected to begin in March. The well is currently planned to be drilled to 3,800 meters depth to evaluate in excess of 1,000 meters of overpressured, gas-charged sands, shales and conglomerates up-dip of two wells drilled in the 1980's by the U.S. Geological Survey and the predecessor of MOL. A pre-drill estimate for the prospect, which covers approximately 2,400 acres in the northwest corner of the Tompa block, is approximately 244 Bcf of gas in place. Any production during the testing phase is planned to be sold to a near-by gas storage facility pursuant to a sales contract currently under negotiation.

Turkish joint venture updates

Toreador has entered into a joint venture agreement with AKSA Enerji Uretim A.S., a division of the Kazanci Group of Companies, to evaluate the hydrocarbon potential in the company's 95,287-acre Bakuk exploration permit, located in southeast Turkey on the Syrian border. According to the terms of the agreement, AKSA will pay for the first $500,000 of a $1.4 million 2D seismic program (due to start in late August 2008) and the first $1.2 million of a $2.1 million well expected to be drilled during the first half of 2009 in return for a 50% working interest in the permit area. The area is on trend with oil fields in Turkey and Syria and is prospective for both natural gas and oil.

In the South Akcakoca Sub-basin project in the Black Sea offshore Turkey, the operator TPAO (the Turkish national oil company) recently reduced production rates to levels approximating 18 million cubic feet per day to obtain more consistent production rates and pressures. Work is planned next week to perforate six meters in the Dogu Ayazli-2 well to maintain or raise the current production rate. The wellhead gas price (at present exchange rates) increased to approximately $13.66 per thousand cubic feet (Mcf) in August, which represents the third price increase this year up from approximately $10.30 per Mcf in January.

Romanian joint venture

In Toreador's Moinesti block, a joint venture agreement has been executed with Stratum Energy Company Limited, a private Texas-based exploration and production company. The terms of the agreement call for Stratum to either re-enter a well and drill two new wells or drill three new wells to earn a 70% interest and operatorship in the Moinesti block. Toreador will be carried for the three well program and will retain a 30% working interest.

Tags: Toreador Resources Corporation