- Revenue more than doubled to approximately $14 million
- EBITDAX increased to approximately $6.0 million
- Operating loss of $2.5 million decreased from prior year loss
- Second farmed-out Hungarian exploration well has been spudded
- A winning bidder for a portion of Toreador's interest in the South Akcakoca Sub-basin selected
Toreador Resources Corporation has announced first quarter 2008 revenues more than doubled to approximately $14.0 million from $6.8 million in the same period last year primarily due to new natural gas production from the South Akcakoca Sub-basin natural gas project offshore Turkey and an increase in realized oil prices in France. For the quarter ended March 31, 2008, Toreador reported earnings before interest, taxes, depreciation, amortization, and exploration expense (EBITDAX, a non-GAAP measure(a)) of $6.0 million compared to $784 thousand for the same period last year, a 740% increase.
Toreador recorded an operating loss in the first quarter of 2008 of $2.5 million, compared to an operating loss of $13.9 million in the same period last year. Compared to the prior year period, first quarter 2008 operating expenses decreased primarily due to a decrease in exploration expense of approximately $1 million; no dry hole expense in the first quarter of 2008 compared to $8.0 million of dry hole expense in the first quarter of 2007; and a decrease in overall G&A expenses of $1.7 million. These decreases were partially offset by increases in lease operating expense of approximately $1.1 million and an increase of $4.8 million in DD&A expenses primarily due to the start of production offshore Turkey. G&A, net of stock compensation expense and expenses due to the resignation of a former CEO, was $3.9 million in the first quarter of 2008, compared to $3.3 million in the first quarter of 2007.
For the three months ended March 31, 2008, the company reported a loss available to common shares of $4.4 million, or $0.22 per share, compared to a loss available to common shares of $8.8 million in the first quarter of 2007, or $0.55 per share. A non-cash foreign currency translation gain of $1.2 million in the first quarter of 2008 was primarily due to the strengthening of the dollar compared to the Turkish lira causing a positive revaluation of historical assets partially offset by a decrease in intercompany payables.
Diluted weighted average shares outstanding in the first quarter of 2008 were 19.7 million, compared to 16.1 million diluted weighted average shares outstanding in the first quarter of 2007.
OPERATIONAL UPDATE
In Hungary, the second well in the previously announced farmed-out Szolnok block exploration program, the Nky-Ny-1, is being drilled to a planned total depth of 1,400 meters. The well is targeting a potential gas reservoir in a Pannonian sand sequence. Results from the well are expected in the next week to ten days. The 3-D seismic survey in the southern part of the Szolnok block has been completed and the results are being processed.
In Turkey, a winning bidder has been selected from the previously disclosed offers for a portion of Toreador's working interest in its South Akcakoca Sub-basin project and surrounding Western Black Sea exploration acreage. The company has an exclusivity agreement with the bidder that may possibly result in a closing sometime in the third quarter subject to completion of due diligence, final negotiation, and board approvals.