EXHIBIT 99.1
(TOREADOR RESOURCES CORP. LETTERHEAD)
NEW RELEASE
TOREADOR FORECASTS IMPROVED FIRST-QUARTER 2003 RESULTS;
OUTLINES PLANS TO FOCUS 2003 EXPLORATION PROGRAM ON TURKEY
-- COMPANY HOSTS BREAKFAST AT HOWARD WEIL ENERGY CONFERENCE APRIL 2 --
DALLAS, TEXAS - (April 1, 2003) - Toreador Resources Corporation
(NASDAQ: TRGL; TSE: TRX) announces that it estimates first-quarter 2003 earnings
in the range of $0.5-1.0 million, or $0.06-0.10 per diluted share, a significant
turnaround from the company's fourth-quarter 2002 loss of $2.7 million, or $0.29
per diluted share. Toreador estimates first-quarter 2003 revenues will be in the
range of $6.5-6.8 million, compared with revenues of $5.4 million for
fourth-quarter 2002. Based on these projections, Toreador estimates
first-quarter 2003 cash flow from operations and asset sales before working
capital changes will be approximately $3.0-3.5 million, or $0.28-0.34 per
diluted share. This is an estimated improvement of 240%-360% over cash flow from
operations and asset sales before working capital changes of $0.8 million, or
$0.08 per diluted share, for the fourth quarter of 2002.
Lower general and administrative expenses, higher commodity prices and
more favorable oil and gas hedging arrangements account for the overall marked
improvement in first-quarter 2003 estimated results compared with the fourth
quarter of 2002.
The company will discuss highlights of its first-quarter projected
results during an investor breakfast it will host at the Howard Weil Energy
Conference April 2 in New Orleans. G. Thomas Graves III, Toreador president and
chief executive officer, and Michael J. FitzGerald, senior vice president,
exploration and production, also will outline Toreador's plans to focus a
significant portion of its exploration and production efforts in 2003 on the
Thrace Basin and Sinop areas of western and northern Turkey.
The company forecasts general and administrative (G&A) expenses for the
first-quarter 2003 will be about $1.4-$1.6 million, compared with $2.3 million
in G&A expenses for the fourth quarter of 2002. The company believes estimated
first-quarter G&A reflects what will be the quarterly run rate for the remainder
of this year's expenses.
"We are quite comfortable that the one-time costs associated with the
Madison Oil Company acquisition are behind us, as well as other nonrecurring
charges, so we have started 2003 with a clean slate," said Graves. "We believe
the first quarter more appropriately reflects a normal operating environment for
Toreador.
"Going forward, we are optimistic that Toreador can successfully manage
growth by focusing on exploration and continuing to aggressively reduce debt and
G&A costs. We have several alternatives to help
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us strengthen our balance sheet currently under consideration. We plan to make a
decision about Toreador's best option in the second quarter of 2003," Graves
added.
The company expects higher first-quarter revenues will be only
partially offset by hedging transactions. The company has hedged approximately
80% of its 2003 natural-gas production at about $5.00 per thousand cubic feet
(Mcf). None of Toreador's domestic oil is hedged. In addition, Toreador has
hedged less than 50% of its international oil production at $26.00 per barrel
based on Brent crude pricing.
"With more than 50% of our estimated 2003 production free from hedges,
this year we should be able to participate in higher commodity pricing," said
Graves. "Even though we expect to incur a first-quarter hedging loss, higher
commodity prices should still have a positive impact on results. Hedges
currently in place are primarily to satisfy credit-facility requirements."
FIRST-QUARTER 2003 GUIDANCE
The following table provides Toreador's forecasted results for the
quarter ended March 31, 2003, which are based on an estimated quarterly
production rate of 200,000-250,000 barrels of oil equivalent (BOE) and an
average estimated realized commodity price of $29.00-31.00 per BOE. These
projections are based on assumptions and anticipated results that are subject to
numerous uncertainties.
TOREADOR RESOURCES CORPORATION
FORECASTED FINANCIAL RESULTS
(in thousands, except per share amounts, unaudited)
<Table>
<Caption>
QUARTER ENDED % CHANGE FROM 4TH
MARCH 31, 2003 QUARTER 2002
------------------ -----------------
Revenues:
Oil and natural gas sales (net of hedges) $ 6,350 - 6,650 +22% to +27%
Other revenues 100
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Total revenues 6,450 - 6,750 +19% to +25%
Costs and expenses:
Lease operating 1,500 - 1,700 +35% to +53%
Exploration and acquisition 250 -60%
Depreciation, depletion, and amortization 1,450 +51%
General and administrative 1,400 - 1,550 -33% to -40%
------------------
Total costs and expenses 4,600 - 4,950 -16% to -22%
------------------
Operating income 1,500 - 2,150
Other expense (450) -82%
Provision for income taxes 400 - 590
------------------
Net income 650 - 1,110
Dividends on preferred shares 110
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Income applicable to common shares $ 540 - 1,000
------------------
Basic earnings per share $ 0.06 - 0.10
------------------
Diluted earnings per share $ 0.06 - 0.10
------------------
Weighted average shares outstanding:
Basic 9,338
Diluted 10,452
</Table>
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On March 13, 2003, the company predicted that income for the year 2003
would be $3.3 million, or $0.35 per common share. The company believes these
projections, based on estimated annual production of 950,000 BOE and an average
estimated realized commodity price of $27.25 per BOE, remain attainable.
Toreador's exploration focus in 2003 will be the Thrace Basin and Sinop
areas of western and northern Turkey. The low-cost program, which is estimated
to range from $1.0-1.5 million, is expected to include the drilling of shallow
wells and a well re-entry.
"On an unrisked basis, these wells could add about 40 million BOE net
proved reserves to Toreador," said Graves. "The program is part of our strategy
to participate in these types of international projects -- low-risk/high-reward
ventures that offer substantial upside. Based on our three-year projection, we
believe we have opportunities in our portfolio that have potential reserves on
an unrisked basis of more than 270 million BOE."
As previously reported, Toreador plans to complete the Barbaros-1 well
in the Thrace Basin gas play west of Istanbul. Based on well-log evaluation,
Toreador estimates the Barbaros-1 could produce at an initial rate of 2 million
cubic feet of gas per day. Depending on test results of the Barbaros-1, the
company could drill an appraisal well to confirm the discovery and proceed with
project development.
In addition, Toreador plans to drill three low-cost, high-potential
Thrace Basin exploration wells on the Gallipoli Peninsula, 40 miles southwest of
Barbaros-1, to follow up on gas shows encountered by other operators. Toreador
holds working interests in six Thrace Basin licenses ranging from 25%-100% and
operates four of them. Toreador's partner, PEMI, operates the remaining two
licenses.
In the Sinop area northeast of Ankara, the company plans to re-enter a
high-potential well that encountered numerous oil and gas shows when it was
drilled by another operator in the late 1980s. Toreador operates and holds a
100% working interest in six Sinop permits.
Toreador's Howard Weil conference presentation will be archived on the
company's web site, www.toreador.net. A copy of the presentation may be
requested by calling the company toll-free at 1-800-966-2141.
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,
Romania, 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
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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 or alternative 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.
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 news 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.
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CONTACTS:
Toreador Resources PondelWilkinson MS&L
Douglas W. Weir, SVP and CFO Cecilia A. Wilkinson
Crystal C. Bell, Investor Relations 323-866-6089
214-559-3933 or 800-966-2141