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Toreador to Sell U.S. Mineral and Royalty Assets for $45 Million
Wednesday December 10, 6:22 pm ET
Sale Will Reduce Debt by $30 Million, Provide Funds for Stronger International Focus

DALLAS--(BUSINESS WIRE)--Dec. 10, 2003--Toreador Resources Corporation (Nasdaq:TRGL - News; TSX:TRX - News) announces today it will sell its U.S. mineral and royalty assets for approximately $45 million to an undisclosed buyer. The sale, which will reduce Toreador's proved oil and gas reserves by only 14%, reaffirms Toreador's commitment to build its international exploration and production business. The transaction has been approved by the boards of directors of both companies and is expected to close in January 2004.

The sale will allow Toreador to strengthen its balance sheet by extinguishing its two senior credit facilities, which will reduce debt by approximately $30 million. The sale will increase stockholders' equity by approximately $20 million. Upon completion of the transaction, Toreador anticipates recording a pretax gain of approximately $32 million in the first quarter of 2004.

"In addition to improving our balance sheet, this asset sale will provide us with the necessary funds to implement our three-year operations plan, which balances exploration endeavors, particularly in Turkey's Black Sea and France, with French and Romanian development and rehabilitation work," said G. Thomas Graves III, President and Chief Executive Officer of Toreador. "We look forward to being able to take full advantage of overseas exploration and exploitation opportunities.

"We believe we can create greater long-term value for our shareholders by monetizing our U.S. mineral and royalty portfolio and participating in higher-reward international projects that will enhance their investment," added Graves.

Toreador's plan for replacing production and proved reserves relinquished in the U.S. asset sale includes a multi-well re-entry and development program in France beginning in early 2004.

"We expect next year's work in France alone will allow us to replace more than one-third of the production lost as a result of this sale," said Graves, "and in 2005 we expect to have replaced all of the production generated by our domestic mineral properties, prior to factoring in any potential exploration success."

Toreador will retain its U.S. working-interest ownership portfolio, which accounted for about 10% of the company's proved oil and gas reserves at December 31, 2002.

"Continued participation in select exploratory wells and the pursuit of working-interest acquisition opportunities will drive our U.S. growth strategy," said Graves.

Toreador's domestic mineral and royalty portfolio comprises approximately 2.6 million gross acres, or 1.4 million net acres, in eight states: Alabama, Arkansas, California, Kansas, Louisiana, Michigan, Mississippi and Texas.

Toreador previously disclosed that it was diligently exploring alternatives to refinance all or part of its capital structure.

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 assets in eight states and working interests in five states. More information about Toreador may be found at the company's web site,

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 or alternative capital, and other risks and uncertainties described in the company's filings with the Securities and Exchange Commission (SEC). 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. Investors are urged to also consider closely the disclosure in Toreador's Form 10-K for the fiscal year ended December 31, 2002, available from the company by calling 214.559.3933 or 800.966.2141. This form also can be obtained from the SEC at

(Table Follows)
Note: The accompanying unaudited Pro Forma Combined Balance Sheet is based on the historical balance sheet of Toreador as of September 30, 2003, and has been prepared assuming the sale of the U.S. mineral and royalty assets had been consummated on that date.

The pro forma adjustments are based upon available information and assumptions that management of Toreador believes are reasonable. The Pro Forma Combined Balance Sheet does not purport to represent the financial position of Toreador had such transaction been consummated on the date indicated or Toreador's financial position or results of operations for any future date or period.

SEPTEMBER 30, 2003

Pro Forma
As for Pro Forma
reported Asset Sale Combined
-------- ----------- ---------
(In thousands, except share data)
Current assets:
Cash and cash equivalents $619 $15,927 (1)(2) $16,546
Accounts and notes receivable 3,809 3,809
Available-for-sale securities,
at fair value 32 32
Other 1,702 1,702
-------- ----------- ---------
Total current assets 6,162 15,927 22,089

Oil and gas properties, net,
using the successful efforts
method of accounting 77,301 (13,826) (1) 63,475

Investments in unconsolidated
entities 501 501
Goodwill 5,467 5,467
Other assets 506 506
-------- ----------- ---------
Total assets $89,937 $2,101 $92,038
======== =========== =========

Current liabilities:
Accounts payable and accrued
liabilities $5,838 $5,838
Unrealized losses on commodity
derivatives 1,052 1,052
Current portion of long-term
debt 14,000 (14,000) (2) --
Income taxes payable 1,677 11,682 (1) 13,359
-------- ----------- ---------
Total current liabilities 22,567 (2,318) 20,249

Long-term debt 15,473 (15,473) (2) --
Long-term accrued liabilities 578 578
Long-term asset retirement
obligation 1,625 1,625
Deferred tax liability 13,346 13,346
Convertible debenture 2,160 2,160
-------- ----------- ---------
Total liabilities 55,749 (17,791) 37,958

Stockholders' equity:
Preferred stock, Series A & A-
1, $1.00 par value, 4,000,000
shares authorized; 237,000
and 197,000 issued 237 237
Common stock, $0.15625 par
value, 30,000,000 shares
authorized; 10,058,544 shares
issued 1,572 1,572
Capital in excess of par value 31,470 31,470
Retained earnings 232 19,892 (1) 20,124
Accumulated other
comprehensive income 3,211 3,211
-------- ----------- ---------
36,722 19,892 56,614
Treasury stock at cost:
721,027 shares (2,534) (2,534)
-------- ----------- ---------
Total stockholders' equity 34,188 19,892 54,080
-------- ----------- ---------
Total liabilities and
stockholders' equity $89,937 $2,101 $92,038
======== =========== =========

(1) To record the sale of the U.S. mineral and royalty assets in
exchange for approximately $45.4 million in cash resulting in an
approximate $31.6 million ($19.9 million after-tax) gain on the
(2) To record the payoff in cash of current and long-term borrowings
under the Barclays Bank, Plc credit facility of approximately $12.2
million and the Bank of Texas credit facility of approximately $17.3

Toreador Resources, Dallas
Douglas W. Weir or Crystal C. Bell
214-559-3933 or 800-966-2141

Source: Toreador Resources

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