[TOREADOR LETTERHEAD]
NEWS RELEASE
================================================================================
TOREADOR REPORTS THIRD-QUARTER 2002 RESULTS;
PROVIDES OPERATIONAL UPDATE, GUIDANCE
DALLAS, TEXAS - (NOVEMBER 8, 2002) - Toreador Resources Corporation
(NASDAQ: TRGL; TSE: TRX) today announced results for the third quarter and nine
months ended September 30, 2002, which continued to reflect increased cash flow
compared with the same periods in 2001 and expanding international oil and gas
exploration activities.
Production hedges and significantly lower realized commodity prices had
a negative impact on nine-month 2002 results. A $2.4 million noncash unrealized
loss related to oil and gas production hedges contributed to a $3.8 million loss
applicable to common shares for the first nine months of 2002. Revenues for the
same period rose only slightly due to dramatically lower commodity prices
year-over-year. However, an improvement in realized prices over the shorter term
boosted third-quarter 2002 revenues compared with the year-ago quarter.
For the first nine months of 2002, cash flow from operations before
working capital changes and including proceeds from the sale of properties and
equipment was $10.0 million, compared with $6.0 million for the year-ago period.
Cash flow from operations before working capital changes for the first nine
months of 2002 was $5.7 million versus $5.4 million for the same period in 2001.
"Our year-to-date financial results reflect the front-end opportunity
cost of increased exploration activity, especially in the international arena
and particularly since our merger with Madison Oil Company in late 2001," said
G. Thomas Graves III, President and Chief Executive Officer of Toreador. "Our
production volumes have nearly doubled, continuing to provide solid cash flow.
From a financial management standpoint, debt reduction is one of our primary
goals, with total debt outstanding decreasing for the quarter by $3.3 million,"
Graves said. In the same period a year earlier, debt increased by $2.5 million.
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THIRD-QUARTER RESULTS
For the third quarter of 2002, Toreador reported a loss applicable to
common shares of $1.3 million, or $0.13 per diluted share, compared with income
applicable to common shares of $295,000, or $0.04 per diluted share, for the
third quarter of 2001.
Third-quarter 2002 revenues rose 44% to $4.8 million from $3.3 million
for the year-ago quarter. This year's third-quarter revenues included a loss
related to oil and gas production hedges of approximately $1.1 million; in
comparison, third-quarter 2001 revenues included a gain of $454,000. Toreador
uses oil and gas hedges as part of an overall risk management program designed
to reduce the impact of oil and gas price fluctuations, support its capital
expenditure plans and debt service requirements, and maximize the funds
available under the company's credit facilities.
During the third quarter, Toreador's oil and gas production was 265,000
barrels of oil equivalent (BOE), nearly double third-quarter 2001 production of
136,000 BOE. The company's third-quarter 2002 average realized price per BOE
rose 10% to $21.64 from $19.64 per BOE for the third quarter of 2001.
In the third quarter of 2002, Toreador recorded a $1.1 million loss on
property sales as part of the company's ongoing program to divest nonstrategic,
underperforming assets. Toreador realized proceeds of $2.4 million from property
sales during the quarter, which primarily were used to reduce outstanding debt.
NINE-MONTH RESULTS
For the first nine months of 2002, Toreador reported a loss applicable
to common shares of $3.8 million, or $0.40 per diluted share, compared with
income applicable to common shares of $2.7 million, or $0.40 per diluted share,
for the first nine months of 2001.
Revenues for the first nine months of 2002 were $14.4 million, which
included a loss related to oil and gas production hedges of $3.6 million.
Revenues of $13.1 million for the year-ago period included a gain related to oil
and gas production hedges of $1.0 million.
During the first nine months of 2002, Toreador's oil and gas production
was 828,000 BOE, nearly double production of 429,000 BOE for the same period
last year. The production increase was offset by a significant year-over-year
decline in oil and gas prices. The company's
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average realized price per BOE for the first nine months of 2002 was $20.57, a
21% decline from an average realized price per BOE of $26.19 for the first nine
months of 2001.
For the first nine months of 2002, Toreador recorded a $2.1 million
loss on property sales, compared with a gain on property sales of $285,000 for
the year-ago period.
Toreador confirmed its previously announced estimate that free cash
flow in 2002 will range from $12.0 million to $15.0 million before debt
repayment and capital expenditures. The company also said its planned capital
expenditure budget for 2002 will be approximately $5.0 million.
During October 2002, Toreador received approval from its Board of
Directors and holders of a majority of its Series A Convertible Preferred Stock
for the private placement of up to $4.0 million of additional preferred stock.
The new series of preferred stock, Series A-1 Convertible Preferred Stock, is
priced at $25.00 per share and has essentially the same terms as the Series A
Convertible Preferred Stock. Each share of Series A-1 Convertible Preferred
Stock is entitled to an annual 9% cash dividend payable quarterly and is
convertible into 6.25 shares of Toreador common stock. To date, the company has
sold 37,000 shares of Series A-1 Convertible Preferred Stock for aggregate
proceeds of $925,000 and anticipates continuing to accept subscriptions until
December 31, 2002, for up to an aggregate of $4.0 million of Series A-1
Convertible Preferred Stock. Toreador expects to use the net proceeds from the
private placement to fund portions of its exploration and development program
and for other general corporate purposes. (The shares of Series A-1 Convertible
Preferred Stock have not been registered under the Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent registration
or an applicable exemption from registration requirements.)
OPERATIONAL UPDATE
TRINIDAD
Trinidad Exploration and Development, Ltd. (TED), in which Toreador
holds a 16.33% interest, is currently drilling the Rapso-1 well on Trinidad's
Southwest Peninsula Block, testing the sands in the Tertiary Morne L'Enfer,
Forest and Cruse formations. Originally planned to reach a total depth of 8,600
feet, the Rapso-1 well, which was spudded
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in mid-September, is being drilled to a total depth of 9,600 feet to fully test
the Lower Cruse formation.
Rapso-1 is the first of two high-potential onshore exploration wells to
be drilled by TED on the block.
The Rapso-1 well will be followed by the drilling of the Calypso-1 well
in the fourth quarter of 2002. It is estimated Calypso's proposed total depth of
9,500 feet will be reached seven weeks from spud date. The Calypso-1 well will
test the same prospective sections as the Rapso-1.
In addition, offshore well locations are being evaluated in the Erin
Bay area of the Southwest Peninsula Block. If the analysis is favorable,
drilling is anticipated to commence either during the fourth quarter of 2002 or
early 2003.
The Southwest Peninsula Block comprises 45,000 acres onshore and
offshore southwest Trinidad. Current drilling operations are based on
interpretation of a 150-square-kilometer 3D seismic survey acquired in 2001 over
the Southwest Peninsula permit area. TED is operator of the license area and
holds a 72.5% working interest in the block, with the remaining 27.5% interest
held by the Petroleum Company of Trinidad & Tobago Ltd., the Trinidadian
national oil company.
TURKEY
Toreador continues a successful drilling and development program in
Turkey. In the south-central region, the East Hasancik-1, a new-field wildcat
well, discovered oil early in the fourth quarter and testing is under way. It is
estimated that gross potential reserves on the prospect could be about 10-12
million barrels of oil. Toreador has a 6% royalty interest in the East
Hasancik-1 well, which is located three-and-a-half miles west-southwest of the
Zeynel Field on the Zeynel permit and is operated by Aladdin Middle East.
During the third quarter, the Zeynel-15 development well was
successfully completed, flowing at a gross rate of 315 barrels of oil per day
(BOPD). The well has nearly doubled field production to about 625 BOPD. In
addition, the company plans to re-enter the Zeynel-6 development well to further
test the Derdere structure, one of the deepest and most productive formations in
the south-central Turkey oil province. The Zeynel Field, in which Toreador has
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an 8.5% royalty interest, is operated by Aladdin Middle East and is producing
about 50 BOPD net to Toreador.
In the Cendere Field, the Cendere-19 well was completed in the third
quarter at a gross rate of 275 BOPD, increasing field production by about 15% to
more than 2,100 BOPD. Toreador has a 19.6% working interest in the Cendere
Field, which is located about 15 miles northeast of the Zeynel Field and is
operated by the Turkish national oil company, TPAO. The Cendere Field is
producing approximately 350 BOPD net to Toreador. During the fourth quarter of
2002, a 3D seismic survey of the Cendere Field is expected to be conducted,
which the company anticipates will aid in identifying additional drilling
locations.
In early 2003, Toreador plans to complete the Barbaros-1 well in
northwest Turkey, a gas prospect in the Thrace Basin. Based on well-log
evaluation, the company currently estimates the Barbaros-1 could produce at an
initial rate of 2.0 million cubic feet of gas per day. The well was drilled in
an area where there had been no previously established production. Toreador is
operator and holds a 100% working interest in the Barbaros-1 well, located 60
miles west of Istanbul. Currently, there are favorable gas-market conditions in
Turkey where prices remain stable in the US$4-$5 per thousand cubic feet (Mcf)
range.
A 1,275-kilometer 2D seismic survey on four permits in the near-shore
Black Sea was completed in the third quarter of 2002. Based on continuing
seismic interpretation, Toreador has identified several gas prospects from which
the company anticipates selecting two initial well locations, with drilling
targeted to begin in mid-2003. Toreador is operator and holds a 49% working
interest in these permits.
FRANCE
The French government has granted Toreador the 183,000-acre Courtenay
permit with an initial four-year exploration period. Geological evaluation of
the acreage will begin soon. The acreage is contiguous with and surrounds the
company's Chateau-Renard and Saint-Firmin-des-Bois concessions. Toreador's
analysis to date indicates the Neocomian production trend could continue in an
east-northeast direction onto this permit.
Current production continues at a steady rate of about 1,200 BOPD from
Toreador's five 100%-owned and operated producing oil fields in France.
Depending on capital
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availability in 2003, Toreador plans to implement a development program in
France comprising the drilling of three development wells, four well re-entries
and the redrilling of one well. Two exploration applications totaling about
100,000 acres remain pending.
UNITED STATES
In the United States, Toreador is participating in the completion of
the Walton Gas Unit 2-2 well located on the 1,000-acre Walton Gas Unit prospect.
Part of the larger Bethel Dome Project in Anderson County in east Texas, the
exploratory well has been drilled to a total depth of 10,100 feet and production
casing set to total depth. Completion operations have begun with flow testing
anticipated during the fourth quarter. Toreador has a 5.86% interest in the well
and any subsequent offset development-well locations.
Toreador continues to earn significant revenues from its perpetual-fee
U.S. mineral and royalty interest portfolio, representing $4.7 million, or about
one-third of total revenues during the first nine months of 2002. For full-year
2002, the company anticipates its mineral and royalty interests will be about
the same percentage of total revenues.
Mineral and royalty interest revenues provide a solid financial
foundation on which Toreador continues to build its worldwide exploration and
development program. Less than 5% of the more than 1.3 million net acres in the
company's U.S. mineral portfolio are producing to date, with the remaining
acreage providing potential for additional future revenues. Currently, five
wells are being completed on the company's mineral holdings in Alabama and
Mississippi, and five wells remain scheduled to be drilled on Toreador's west
Texas mineral holdings during the fourth quarter. The wells on Toreador's
mineral holdings are drilled and completed by various operators at no cost or
risk to the company.
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OTHER GUIDANCE
Based on information available to date, Toreador revises its 2002
production estimates as follows:
<Table>
<Caption>
Production Estimates for Full-Year 2002
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Oil (MBbls):
United States 250 - 275
France 415 - 435
Turkey 110 - 125
Gas (Bcf):
United States 1.8 - 2.0
France --
Turkey --
</Table>
ABOUT TOREADOR
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, Turkey
and Trinidad, West Indies. In the United States, Toreador primarily owns
perpetual oil and gas mineral and royalty interests in eight states and working
interests in five states. More information about Toreador may be found at the
company's web site, www.toreador.net.
Safe-Harbor Statement -- Except for the historical information
contained herein, the matters set forth in this news release are
"forward-looking statements" within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. The company intends that all such statements be subject to the
"safe-harbor" provisions of those Acts. Many important risks, factors and
conditions may cause the company's actual results to differ materially from
those discussed in any such forward-looking statement. These risks include, but
are not limited to, estimates of reserves, estimates of production, future
commodity prices, exchange rates, interest rates, geological and political
risks, drilling risks, product demand, transportation restrictions, the ability
of Toreador to obtain additional capital, and other risks and uncertainties
described in the company's filings with the Securities and Exchange Commission.
The historical results achieved by the company are not necessarily indicative of
its future prospects. The company undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise.
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Cautionary Note to Investors -- The Securities and Exchange Commission
(SEC) permits oil and gas companies, in their filings with the SEC, to disclose
only proved reserves that a company has demonstrated by actual production or
conclusive formation tests to be economically and legally producible under
existing economic and operating conditions. Toreador uses the term potential
reserves in this press release that the SEC's guidelines strictly prohibit it
from including in filings with the SEC. Investors are urged to also consider
closely the disclosure in Toreador's Form 10-K for the fiscal year ended
December 31, 2001, File No. 0-02517, available from the company by calling
214.559.3933. This form also can be obtained from the SEC at www.sec.gov.
The term "potential," when referring to Toreador's reserves, represents
Toreador management's current belief or judgment, based on information available
to it, regarding the potential reserves that could be recovered or could be
recoverable. These numbers should not be viewed as reliable for the purposes of
estimating Toreador's reserves or its prospects. Additionally, the term
"potential" has no engineering significance and is not related to the term
"possible" as that term may be used by the Society of Petroleum Engineers.
# # #
CONTACTS:
TOREADOR RESOURCES PONDELWILKINSON MS&L
Douglas W. Weir, SVP and CFO/ Gary S. Maier/Julie MacMedan
Crystal C. Bell, Investor Relations 323-866-6060
214-559-3933 or 800-966-2141
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TOREADOR RESOURCES CORPORATION
(in thousands, except per share amounts)
<Table>
<Caption>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
-------------------------- --------------------------
SELECTED FINANCIAL RESULTS 2002 2001 2002 2001
----------- ----------- ----------- -----------
Revenues:
Oil and natural gas sales $ 4,672 $ 3,173 $ 13,803 $ 12,590
Other revenues 120 162 621 488
----------- ----------- ----------- -----------
Total revenues 4,792 3,335 14,424 13,078
Costs and expenses:
Lease operating 1,834 780 5,563 2,332
Exploration and acquisition 263 497 712 997
Depreciation, depletion, and amortization 1,428 662 4,601 2,278
General and administrative 1,728 633 5,397 1,960
----------- ----------- ----------- -----------
Total costs and expenses 5,253 2,572 16,273 7,567
----------- ----------- ----------- -----------
Operating income (loss) (461) 763 (1,849) 5,511
Other expense (1,533) (152) (3,525) (730)
Provision for (benefit from) income taxes (828) 226 (1,861) 1,769
----------- ----------- ----------- -----------
Net income (loss) (1,166) 385 (3,513) 3,012
Dividends on preferred shares 90 90 270 270
----------- ----------- ----------- -----------
Income (loss) applicable to common shares $ (1,256) $ 295 $ (3,783) $ 2,742
=========== =========== =========== ===========
Basic earnings per share $ (0.13) $ 0.05 $ (0.40) $ 0.43
=========== =========== =========== ===========
Dilluted earnings per share $ (0.13) $ 0.04 $ (0.40) $ 0.40
=========== =========== =========== ===========
Weighted average shares outstanding:
Basic 9,338 6,374 9,345 6,320
Dilluted 9,338 6,582 9,345 7,570
SELECTED OPERATING RESULTS
Production
Oil production (MBbl) 186 71 589 223
Natural gas production (MMcf) 472 392 1,437 1,238
Equivalent production (MBOE) 265 136 828 429
Prices
Average oil price per Bbl $ 24.04 $ 23.33 $ 21.88 $ 25.13
Average natural gas price per Mcf 2.66 2.61 2.89 4.56
Average equivalent price (per BOE) 21.64 19.64 20.57 26.19
</Table>
<Table>
<Caption>
SEPT. 30, DEC. 31,
2002 2001
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SELECTED BALANCE SHEET INFORMATION
Net working capital (deficit) $ (3,732) $ (879)
Properties and equipment, net 69,141 78,028
Total assets 85,828 94,454
Long-term liabilities 45,634 51,917
Stockholders' equity 29,404 33,555
</Table>