Toreador Resources Corp. announced Monday that it has entered into an agreement with RTF Realty Inc. of Dallas, to sell all of its U.S. oil and gas properties for approximately $19.1 million in cash. The “as is, where is” sale will be effective Sept. 1.
Net proceeds from the sale will be added to Toreador’s working capital and used for possible modest debt repayment, to fund the company’s ongoing development program in Turkey and for other strategic initiatives.
“The sale of these mature, nonoperated properties with no exploration or development potential completes the divestiture of the company’s noncore, domestic assets and allows us to focus exclusively on our international operations,” said Toreador CEO Nigel Lovett.
The U.S. properties, which primarily consist of nonoperated working interests in approximately 700 wells in five states, had proved reserves at the end of 2006 of approximately 4.1 Bcf of gas and 700,000 bbl. The book value of the properties was approximately $10.3 million, or approximately 4% of the aggregate book value of the company’s oil and gas properties, according to Toreador. A gain of $9 million is expected be recorded on the sale in the company’s third quarter results. Taxes due on the gain are expected to be offset by tax loss carryforwards.
Toreador is scheduled to release second quarter 2007 earnings on Thursday.
Toreador is engaged in the acquisition, development, exploration and production of natural gas, crude oil and other income producing minerals. The company owns working interests in Turkey, France, Romania and Hungary.
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