Toreador announces gas dicovery

Toreador Resources Corporation announces that the Bati Eskikale-1 well discovered approximately 10 meters of net gas pay in a 37-meter thick interval from 1,454 meters to 1,491 meters. The 37-meter interval was perforated and tested, yielding a flow rate of approximately 8.8 million cubic feet of gas per day (MMCFD) at a flowing pressure of approximately 1,690 pounds per square inch.

The Bati (West) Eskikale-1 confirms that the trend of natural gas in the deeper waters of the South Akcakoca Sub-basin (SASB) project extends to the northwest of the Akcakoca-3, and is the 14th well to successfully encounter gas in the project area. The well is located approximately 5.5 kilometers to the west-northwest of the Akcakoca-3 well.

In the Ayazli Field, the tie-in of the two Ayazli wells to the production platform and commissioning of surface equipment is progressing according to plan. However, connection to the pipeline system and start of production is delayed in order to remove extraneous equipment on the pipeline spur and adjust the subsea valve.

Combined production from the Akkaya and Dogu Ayazli platforms is approximately 17 MMCFD gross from four wells and the realized wellhead price now exceeds $9 per thousand cubic feet. This does not represent optimum production, which will only be achieved once all three platforms are brought online. The Dogu Ayazli-2 well is currently shut-in and undergoing evaluation as production from the one zone perforated in the well has not met expectations while reservoir pressures appear to be normal. Intervention plans are being discussed with the operator.

Toreador has a 36.75% interest in the SASB project. TPAO (the Turkish national oil company) has a 51% interest and is the operator. The remaining 12.25% is held by Stratic Energy Corporation.

In France, oil production has remained steady with the current rate approximately 1,150 barrels of oil per day. Pricing, which is based on a monthly average of discounted Brent crude, was approximately $74.53 per barrel in September and is expected to be higher in October, with December Brent crude closing yesterday at $90.63 per barrel on the London ICE Futures exchange.