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Did anybody made a DD what share price it could be when it comes to a JV or to a sale?? Thank you in advance for your assistance!
Dow Jones story released after the close yesterday:
22-Jan-10 04:18 pm NEW YORK (Dow Jones)--Toreador Resources Corp. (TRGL) shares have surged this week, hitting a two-year high Friday, amid media reports that several big energy conglomerates are in talks to buy or partner with the independent oil and gas company.
France-based Toreador said last November that it was evaluating its strategic alternatives, but the unconfirmed reports that the company is making progress on a deal have sent the stock up about 45% this week.
The New York Times reported the talks Wednesday on its Deal Book blog, saying Royal Dutch Shell PLC (RDSA, RDSB), BP PLC (BP) and Statoil ASA (STO) have signed confidentiality agreements with Toreador as part of initial talks aimed at buying or partnering with the company. The report cited "people briefed on the matter."
Representatives from Toreador, Statoil and Shell couldn't be reached for comment. BP declined to comment.
If the reports are correct, the big oil companies are likely eyeing Toreador's main asset, the Paris Basin oil shale, which Toreador says potentially contains 65 billion barrels of oil.
Toreador, which has a market capitalization of about $227 million, doesn't have the resources to fully develop the shale, which requires unconventional recovery techniques, so it needs the help of a company with a big balance sheet, Raymond James analyst Pavel Molchanov said.
While the full potential of the shale remains uncertain, now that it looks like big oil companies have studied the data on the area and still appear to be interested in making a deal, the potential of the shale is being validated, C.K. Cooper analyst Joel Musante said.
Musante said that while both the talks and the source of the information haven't been confirmed, he thinks Toreador is likely the source of the information. Publicity would work to Toreador's strategic advantage, he said, potentially helping the company attract more participants to the negotiations.
Raymond James' Molchanov said that he thinks the deal will end up being a partnership instead of a takeover, since a partnership is a more streamlined way of accomplishing essentially the same objective.
The Benchmark Co. analyst Mark Gilman, who covers BP, said he hasn't heard anything to confirm the talks. However he said he wouldn't be surprised if BP is eyeing Toreador, since BP has clearly been looking to pursue unconventional oil and gas prospects recently.
Shares of Toreador were recently up 14% to $13.13. The stock rose as high as $13.69 Friday, a level it hasn't traded above since July 2007.
-By Jennifer Cummings, Dow Jones Newswires; 212-416-2474; jennifer.cummings@dowjones.com
George Soros Recently bought 200,000 shares of TRGL. He knows what he's doing. It appears that he has been buying since September. His most recent purchase was at $10.25.
"Gurus Trades with TRGL:
Number of guru portfolios checked: 67.
Ticker Company Picked By Date (?) Action
AllNew/addNew buysAdd onlyAll sellsSold outReduce Impact to Portfolio (?) Price Range
(Average)* (?) Current Price Change from Average Comment Current Shares
TRGL Toreador... George Soros 2009-09-30 Buy 0.05% $4.63 - $10.25
($6.51) $ 11.5 77% New holding, 200000 sh. 200,000"
TRGL closed at $13.05 today. Almost 2 million shares traded. The float is only 16 million shares.
TRGL is up $1.70, so far today. But, it's jumping around a lot. Might be some profit taking late. Or Big News after the close. Stay tuned, if anyone is reading this.
TRGL up $1.36 so far today. This is like riding a wild bronco. I'm surprised that there aren't more people posting on this site. Is this still an unknown stock in the USA?
TRGL is $12.10 afterhours! With only about 21.5 million shares outstanding, I think that a very large per share offer will be made by BP for the company. This is not a company with 200 million shares outstanding, only 21+ million. The offer might be very high, considering it includes an oil company with unique equipment, and oil drilling rights to most of the Paris Oil Basin, which is massive. The company might just be merged right into BP, employees, equipment, properties and all. All that is worth a lot more than the stock's current price.
BP tells "BP Card Holders" that they plan to buy an oil company that operates in France. If the are going to spend billions to buy oil property in Egypt, how much will they spend to buy TRGL's massive properties in France. If Total, the major French oil company dropped out, the bidding got too high. I would like to think TRGL would bring $100 a share from BP, since I would think TRGL's unique equipment to extract oil from shale and also crude oil, plus the knowledge to operate that equipment will go along with the properties. That has to be considered as an added asset for BP, which increases the value of TRGL.
Received this info about a half hour ago from "Google Alerts"
BP account card news: Oil major 'to buy Toreador'
21 January, 10
BP account card customers have been told that the company is in initial discussions to buy an oil exploration firm which operates in France.
Citing people briefed on the matter, New York Times website DealBook reported that BP, along with Royal Dutch Shell and Statoil ASA, are all keen to either acquire or partner with Toreador Resources.
Although it carries out most of its exploration in France, Toreador is based in the US. It has a current market value of around $200 million (£123 million).
According to the unnamed sources, meetings are taking place in New York this week between representatives from the explorer and one of the oil giants, although they declined to name which firm was involved.
They added that French energy company Total was initially interested in the deal, but has since pulled out.
Last week, BP was reported to be planning to invest in oil and gas exploration projects in Egypt.
Its chief executive officer Tony Hayward told state news agency MENA it will spend $10 billion in the Egyptian market in the coming years, Reuters reported.
TRGL is flying today. Up another dollar or so. I believe that the word is out that this stock is for real. I believe that BP wants TRGL badly, either a buyout or merger. A merger would probably give us BP stock, or the stock of whoever merges with TRGL. At about $11.50 now, heavy buying, probably from those in France who know about the company, is driving the price up. It will stop at a point somewhat below what they believe BP, or any other interested party, is willing to pay. BP can afford an all cash buyout, but the best interests of the stockholders, in my opinion, would be BP stock. They pay a nice dividend and have for years. It usually increases every year. What price premium over the current price would they offer? With some bidding going on between companies and the vast TRGL holdings in France, you might get $50 to $75 per share or more in stock of the larger company. With TRGL having control of 30 billion barrels of oil in the Paris Basin, the sky is the limit. TRGL just started drilling for crude oil in France. The have the equipment and know how to extract the heavy oil in oil shale. They have done it before in the US. I think that this stock has only seen the start of the price explosion. This is just my opinion, based on facts released by the company and on their web site.
The Company intends to use its proven U.S. experience with the Bakken Formation in Europe to exploit the vast resources that are demonstrated to be in the Paris Basin, using technologies commonplace in the U.S., but not yet employed in Europe.
Daytraders are chasing it up today. If you want to buy, wait a day or so. Tomorrow will cool it off a little as they take today's profits. Patience will pay off! I expect better buying oportunities tomorrow.
Manny- I just got on my computer today, and posted it as soon as I saw the news. Then I looked and saw that you had already beat me to it. I got my first three alerts in differents languages, German mainly. Then the English version. Good find!
Merger or Buyout News Out Today:
Mergers & Acquisitions
Big Oil Pursues Toreador Resources
January 20, 2010, 10:48 am
Several big energy conglomerates are in initial discussions to buy or partner with Toreador Resources Corporation, an independent oil and natural gas company that operates primarily in France, people briefed on the matter told DealBook.
Three big companies — Royal Dutch Shell plc, BP plc and Statoil ASA — have signed confidentiality agreements with Toreador and concluded technical due diligence on the firm’s oil properties, these people said. Toreador currently has a market value of roughly $200 million.
Representatives of Toreador and one of the three energy companies are in New York this week for meetings about how to structure a possible deal, these people said, but declined to provide the name of the company. Total S.A., the giant French energy company, has also conducted initial due diligence on Toreador but has backed away for now, these people said.
In November, Toreador said it would explore strategic alternatives, including raising capital through equity or debt offerings, and a possible partnership in its primary asset, the Paris Basin oil shale. The company’s property on the Paris Basin is estimated to hold about 30 billion barrels of oil. Toreador has had conventional drilling in the basin for years, but hopes to begin a new technique, which uses high pressure water and sand and horizontal drilling to make it easier to extract the oil, in the third quarter this year.
Toreador said at the time that it had set up a special board panel and hired RBC Capital Markets as its financial advisor. The company has decided to shelve plans for a debt or equity offering and has leaned toward a joint-venture or a full merger, sources said.
No longer in a position,but am surprised nobody posted this.
Mergers & Acquisitions
Big Oil Pursues Toreador Resources
January 20, 2010, 10:48 am
Several big energy conglomerates are in initial discussions to buy or partner with Toreador Resources Corporation, an independent oil and natural gas company that operates primarily in France, people briefed on the matter told DealBook.
Three big companies — Royal Dutch Shell plc, BP plc and Statoil ASA — have signed confidentiality agreements with Toreador and concluded technical due diligence on the firm’s oil properties, these people said. Toreador currently has a market value of roughly $200 million.
Representatives of Toreador and one of the three energy companies are in New York this week for meetings about how to structure a possible deal, these people said, but declined to provide the name of the company. Total S.A., the giant French energy company, has also conducted initial due diligence on Toreador but has backed away for now, these people said.
In November, Toreador said it would explore strategic alternatives, including raising capital through equity or debt offerings, and a possible partnership in its primary asset, the Paris Basin oil shale. The company’s property on the Paris Basin is estimated to hold about 30 billion barrels of oil. Toreador has had conventional drilling in the basin for years, but hopes to begin a new technique, which uses high pressure water and sand and horizontal drilling to make it easier to extract the oil, in the third quarter this year.
Toreador said at the time that it had set up a special board panel and hired RBC Capital Markets as its financial advisor. The company has decided to shelve plans for a debt or equity offering and has leaned toward a joint-venture or a full merger, sources said.
Last year, Toreador took steps to strengthen its liquidity including, reducing debt, lowering costs, and selling its Turkish and Hungarian operations to focus on exploration of its French acreage. At the time, Toreador cautioned that there are no guarantees that the talks will result in any changes.
A spokesman for the company declined to comment.
Ouch! We took a hit today. I'm never sure what makes this stock move. Usually good news is ignored, but with nothing new being reported, it tanks.
Yes I would say that TRGL has a higher risk than BEXP simply because they have only just completed their first well and not yet come out with the results. I'm cautiously optimistic based on their previous PR showing oil was present. If the first well results which should be out within the next week, show that the well is flowing oil, then the stock should move higher and the risk will be reduced as future wells should be sucessful as well.
I think you are correct. TRGL might be a bit riskier than I thought. The oil shale is there, but the cost of production could make it unprofitable. The crude might make TRGL worth the price where it is now, maybe a little less.
hercules 16 ($30.00 per barrel). I would guess that the cost would be around $30.00 USD to produce oil from this formation, as the well depth and formation is almost the same as what BEXP is producing from North Dakota's Bakken formation, and they say that the break even cost for producing from the Bakken is $30.00.
Jan 07, 2010 (SmarTrend(R) Spotlight via COMTEX) -- SmarTrend identified an Uptrend for Toreador Resources (NASDAQ:TRGL) on December 28, 2009 at $9.93. In approximately 1 week, Toreador Resources has returned 11.6% as of Thursday's closing price of $11.08.
Toreador Resources is currently above its 50-day moving average of $8.96 and above its 200-day moving average of $6.51. Look for these moving averages to climb to confirm the company's upward momentum.
SmarTrend will continue to scan these moving averages and a number of other proprietary indicators for any shifts in the trajectory of Toreador Resources shares.
Write to Chip Brian at cbrian@tradethetrend.com
65 billion barrels of "shale oil" sounds like a lot! But probably meaningless without a concurrent estimate of the cost of production? (If cost of production is $100 per barrel than the current economic reserves are zero)
I'd be satisfied with the 400 million barrels potential estimate in the article below (the only problem is taht it sounds like hype and will only be believed when they have significant "proved" reserves to back it up):
http://www.toreador.net/images/press/TRGL_Remaking_Toreador.pdf
blue-
This was in today's "Oil and Gas Journal" from Houston:
"In other news, Raymond James analysts cited an article from The Australian quoting claims by Toreador Resources Corp. officials that the Paris basin “could be another Williston basin in the making,” potentially yielding 65 billion bbl of shale oil through application of hydraulic fracturing technology that has proved so successful in the US. Toreador has secured the rights to drill 750,000 acres in the basin that stretches across France and that has produced small amounts of oil via conventional methods. “Come to think of it, the Eiffel Tower looks a lot like an oil rig,” said Raymond James analysts. Veterans of the annual Offshore Technology Conference in Houston may recall several years ago an OTC exhibitor sold samples of some of the first oil produced from beneath Paris in the late 20th century—in glass containers in the shape of the Eiffel Tower."
crossbow, we are looking even better now at 10.86 this morning.
Looks like it will break $11.00 today. Must be some feelings that the test results are going to be quite positive.
gman81, I saw your old post and will tell you what my broker Schwab told me about these high asks, 199999.98721, or very low bids like 0.0001. Today there are 8 brokers with asks of 199999.98721, and a few with bid of 0.0001. This is actually shown on all five Nasdaq stocks that I own, and Schwab told me it's not MM just playing around, but is standard practice for the Brokers when they are providing quotes for a paticular stock, but have currently no customer with a bid or ask, and they just want to keep thier bid or ask open. They do this because they know that they know that there is no chance at all that either extreem bid or ask will be filled.
Hope this helps a bit.
Picked up some more shares over the past few sessions, and it would seem to me that when the well test results are announced in mid an 2010, this stock should start to move upwards.
Some analysts believe that Toreador is open to bids for sale of the company. I have no idea! Below is part of an article by Toby Shute:
A Global Shale Gas Update
By Toby Shute
November 27, 2009
Wine, cheese, and ... oil?
Speaking of oil-bearing shale plays -- not to be confused with Royal Dutch Shell's kerogen-cooking schemes in the Green River Basin -- Toreador Resources (Nasdaq: TRGL) is a small-cap E&P that's shed assets in several countries to focus on conventional and unconventional oil targets in France's Paris Basin. The company even moved it headquarters from Dallas to Paris, in a rare display of commitment to the area.
Toreador's whittled down its debt and corporate overhead to a somewhat more manageable level, but the firm still needs to figure out how best to tackle its oil shale opportunity. The company hired a banker this month to help it "evaluate strategic alternatives." Such language is often code for "sell the company," but in this case, some sort of financing might be just as likely. The $200 million shelf registration filed around the same time as this announcement would suggest that some serious fundraising may in play.
Thanks for your kind comments.
As for TRGL raising money to help pay for the cost of drilling all the Paris Basin land where they have drilling rights, I expected them to form partnerships with larger oil companies with more resources, but not selling most of the ownership of the company. A partner gets a fixed portion of the proceeds of the oil, if any, but not a large ownership in the company. TRGL might wind up being a small portion of a much larger company.
The information below came out today from "Zacks" Investments.
Bearish MACD for Toreador November 24, 2009
TRGL
Toreador Resources Corp.’s (TRGL - Snapshot Report) MACD indicator has moved into bearish territory with a reading of -0.1706. The Zacks #5 Rank (“Strong Sell”) stock fell more than 3% to $7.95 in afternoon trade. The full year Zacks Consensus Estimate is currently pegged at a loss of $1.00 per share, which worsened by 80 cents over the past month.
crossbow, thanks for all the information you put on the board; this gives new potential shareholders a good start with their DD.
Regarding the shelf registration and expected coming dilution: how else might a small wildcatter approach a truly big opportunity like the one in the Paris Basin??
Yes, they are caught between a rock and a hard place and will need substantial financing of one kind or another to unlock the existing value of the resource. It would have been naive to expect them to achieve greatness without substantial new capital from some outside source and it seems to me that they are going about this as diligently as possible.
While a setback in share price is unavoidable, this step also facilitates the required substantial investments to grow the company into the large boots that are awaiting her. The payoff for patient shareholders will come.
Provided always that application of the latest frac technologies will prove to be similarly successful in the Paris Basin as it is in several basins in North America.
Cheers and good luck!
Toreador is now drilling their first well in France. It's supposed to be a sure thing. I haven't received a reply from the company about their PR last week about selling more company stock to raise money. That would dilute the shares now outstanding. They did not pick a very good time to make a move like that and the fact that they didn't reply to my question about floating more stock into the market, makes me likely to reduce my holdings in this company. It can do nothing but reduce the value of our shares in TRGL.
I agree, it doesn't look good!
I got screwed on AVII when it was in the 2.50's and company announced a shelf filing.
They ended up doing financing at 1.42.Price now is 1.48.
TRGL has proven oil,and has income from Paris,but 200 million shelf offering is more than the company's Market Cap.
I remember NSDQ ECN was the one mostly on the Ask on AVII as the stock was going down.
Today's news was a warning for me to get out.
IMHO.I might be wrong.
Manny
Using the info you furnished, I found a mention to the "shelf filing" on "theflyonthewall.com.
November 12, 2009
17:26 EDT TRGL theflyonthewall.com: Toreador Resources files mixed securities shelf up to $200M, DJ reports.
I am not sharp just lucky to have Schwab news,because I didn't see the news elsewhere.
Let's see what happens.
Manny
Manny: I didn't see the info about the shelf filing last night, but I will ask the company about it. You are sharp to have caught that piece of info and it does appear that shorting is going on today.
They made a big mistake of doing a shelf filing first,which I saw last night, and then coming out today with news that they were looking for strategic alternatives "including issuing equity and debt".
The stock is selling off probably being Shorted by the people that know what the pricing for new equity will be.
Now at 8.45 down .37 near low of day.
Manny
In my opinion, TRGL has no intention in trying to confuse shareholders, so that stock held by insiders can be dumped. They have worked very hard getting the company to this point. Being a smaller "Wildcatter", they need funds to operate in the massive scale they plan. They intend to increase stockholder value, not dump stock. Notice how few shares are outstanding. And how many large Mutual Funds hold shares. The have issued a number of statements today, none which I consider negative to shareholders. Below is the most recent PR released today:
News Release
Toreador to Evaluate Strategic Alternatives to Enhance Shareholder Value
RBC Capital Markets Appointed as Financial Advisor
Special Board Committee Formed
PARIS--(BUSINESS WIRE)--Nov. 13, 2009-- Toreador Resources Corporation (NASDAQ:TRGL) today announced that it is undertaking a review of a full range of strategic alternatives available to the Company to enhance shareholder value. Toreador has formed a special board committee ("Strategic Committee"), led by Vice Chairman Julien Balkany, which includes five of the independent directors of the Company, to work with management to conduct the review. The Board of Directors has retained RBC Capital Markets as its financial advisor.
RBC Capital Markets will assist the Strategic Committee to consider and evaluate a range of options during the months ahead, including, but not limited to, equity/debt offerings, a credit facility, substantial equity investments, and/or various corporate transactions. Toreador will also include as part of the effort a review of possible partnerships in the Paris Basin Oil Shale, the Company's primary growth platform.
There is no assurance that this process will result in any changes to the Company's current business plans or lead to any specific action or transaction. While the process is underway, the Company does not intend or expect to disclose any developments regarding the process until, if ever, a specific transaction is approved or the Board determines to terminate the process.
Craig McKenzie, President and CEO of Toreador, said, "Toreador has delivered positive and transformational change over the last nine months, reducing debt, lowering cost, and most recently exiting Turkey and Hungary to focus on the conventional exploration of our French acreage. We have also been extremely active in planning our ‘proof of concept’ phase for the unconventional exploitation of the Paris Basin Oil Shale. We welcome the assistance of RBC Capital Markets to advise the Company in unlocking the undervalued potential of the oil shale and in evaluating all options to enhance shareholder value."
ABOUT TOREADOR
Toreador Resources Corporation is an independent international energy company engaged in the acquisition, development, exploration and production of crude oil. The company holds interests in developed and undeveloped oil properties in France. More information about Toreador may be found at the company's web site, www.toreador.net.
ABOUT RBC CAPITAL MARKETS
RBC Capital Markets is the corporate and investment banking arm of RBC and is consistently ranked among the top 20 global investment banks. With over 3,000 employees, RBC Capital Markets is active globally in fixed income, foreign exchange, infrastructure finance, metals, mining and energy. Working with clients through operations in Asia and Australasia the UK and Europe and in every major North American city, RBC Capital Markets provides capital markets products and services from 75 offices in 15 countries. For more information, please visit www.rbccm.com.
Forward-Looking Statements
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. Toreador intends that all such statements be subject to the "safe-harbor" provisions of those Acts. Many important risks, factors and conditions may cause Toreador'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, actual recoveries of insurance proceeds, 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 Toreador 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.
Toreador Resources Corporation
Shirley Z. Anderson, 469-364-8531
sanderson@toreador.net
or
RBC Capital Markets
Chris Holmes, +44 20 7002 2789
chris.holmes@rbccm.com
TRGL,
Looks to me like the company might be stalling on their 200 million mixed shelf security announcement from last night to give insiders a chance to sell out.
Today's announcement might be a reaction to people dumping shares last night on news of offering.
They have toned it down a little with equity/debt issuing as one option.
Toreador to Evaluate Strategic Alternatives to Enhance Shareholder Value
RBC Capital Markets Appointed as Financial Advisor
Special Board Committee Formed
* Press Release
* Source: Toreador Resources Corporation
* On 7:34 am EST, Friday November 13, 2009
*
Companies:
o Toreador Resources Corp.
PARIS--(BUSINESS WIRE)--Toreador Resources Corporation (NASDAQ:TRGL - News) today announced that it is undertaking a review of a full range of strategic alternatives available to the Company to enhance shareholder value. Toreador has formed a special board committee ("Strategic Committee"), led by Vice Chairman Julien Balkany, which includes five of the independent directors of the Company, to work with management to conduct the review. The Board of Directors has retained RBC Capital Markets as its financial advisor.
Related Quotes
Symbol Price Change
TRGL 8.82 0.00
Chart for Toreador Resources Corporation
{"s" : "trgl","k" : "c10,l10,p20,t10","o" : "","j" : ""}
RBC Capital Markets will assist the Strategic Committee to consider and evaluate a range of options during the months ahead, including, but not limited to, equity/debt offerings, a credit facility, substantial equity investments, and/or various corporate transactions. Toreador will also include as part of the effort a review of possible partnerships in the Paris Basin Oil Shale, the Company's primary growth platform.
There is no assurance that this process will result in any changes to the Company's current business plans or lead to any specific action or transaction. While the process is underway, the Company does not intend or expect to disclose any developments regarding the process until, if ever, a specific transaction is approved or the Board determines to terminate the process.
Craig McKenzie, President and CEO of Toreador, said, "Toreador has delivered positive and transformational change over the last nine months, reducing debt, lowering cost, and most recently exiting Turkey and Hungary to focus on the conventional exploration of our French acreage. We have also been extremely active in planning our ‘proof of concept’ phase for the unconventional exploitation of the Paris Basin Oil Shale. We welcome the assistance of RBC Capital Markets to advise the Company in unlocking the undervalued potential of the oil shale and in evaluating all options to enhance shareholder value."
ABOUT TOREADOR
Toreador Resources Corporation is an independent international energy company engaged in the acquisition, development, exploration and production of crude oil. The company holds interests in developed and undeveloped oil properties in France. More information about Toreador may be found at the company's web site, www.tore
Just saw on my Schwab news after hours, that TRGL has filed for a 200 million mixed shelf registration.
I can't print from Schwab news,and I don't see it on YahooFinance either.
Manny
Info below is from The Smallcap Network:
Gaining 4.25% this morning is Toreador Resources Corporation (TRGL) http://www.toreador.net/ currently trading in the $9.81 range. TRGL is a heavily traded SmallCap stock. TRGL is approximately 99 cents off its 52-week high of $10.79 set on September 28, 2009. The chart below shows a huge spike in September to the $8 range and then a pretty steady pattern between $8-9. With world oil coming back online during the recovery, I believe TRGL can set a floor at $9. TRGL is based in France and has a big advantage there, in one of Europe's biggest oil-consuming nations. TRGL recently relocated from Dallas, Texas to Paris, France. Good move.
I believe the recent TRGL share value rise is based upon a new CFO and new Directors being added to the employment roster (fresh blood) and the Company's, "... sale agreements of our Turkish and Hungarian operations to focus on core French operations."
In its Q3 09 earnings, management also pointed out, "... the elimination of a significant portion of the Company's debt by the repurchase in the open market of $25.7 million face value of our 5% Convertible Senior Notes due 2025 at a purchase price of $21.4 million, which resulted in a gain of $3.4 million on the early extinguishment of debt." Smart.
TRGL revenues for Q3 09 were $5.2 million compared to $9.6 million in Q3 08. The decrease was primarily due to the decline in global oil prices and a temporary decrease in oil production while planned well repairs and maintenance activities were conducted.
While TRGL lost $12.5 million or $0.59 per diluted share in Q3 09 and $1.00 for the first nine months of 09, I believe the worst is behind them. They've lowered their debt significantly, moved their headquarters to where they actually make money, sold two units that weren't great revenue producers and brought in a whole new team of financial experts. This is a near-term 'Watch Closely' stock for me.
Info below is from today's SEC filing. Notice the estimated oil reserves in Part 1 of the Paris Basin properties, 100% owned by TRGL. This well is in an area where the company is using conventional drilling:
The Company expects that the Paris Basin will remain the Company's core asset with current production of approximately 900 net barrels per day coming from low-decline, long-life assets. A comprehensive portfolio review of our fields and 649,000 net acres held pursuant to licenses continues and an additional 154,000 that are pending permitting. The results of the study will be used to launch the three-year strategic plan that was announced at the Annual Stockholders Meeting in June 2009;
•
On June 16, 2009 we entered into futures and swap contracts for approximately 18,000 Bbls per month for the months of July 2009 through December 2009 with a floor price of $65.00 per Bbl and a ceiling of $77.00 per Bbl.;
•
A rig contract has been signed to drill the La Garenne well, in France, on the 100% owned Rigny le Ferron permit and is scheduled to spud late November pending regulatory approvals. The well is an updip test of the nearby Flacy 1 and 2 oil discoveries made and produced in the 1980's. The well has the potential of proving between 6-30 mmbo of oil in place.
The info below was expected since TRGL moved their HQ from Texas to Paris and bought down debt during this period. Not bad news as stock is up 30+ cents today:
Monday, November 9, 2009, 11:02am CST
Toreador Resources Corp. posts a net loss of $12.5MDallas
Business Journal
International oil and gas producer Toreador Resources Corp. posted a net loss of $12.5 million for the third quarter of fiscal 2009 on Monday.
During the same period, Toreador’s (NASDAQ: TRGL) revenue fell from $9.6 million in the third quarter of 2008 to $5.2 million in the most recent quarter as the company’s sales felt the negative impact of a global decline in oil prices and a temporary drop in oil production.
On an earnings-per-share basis, Toreador posted a net loss of 59 cents per share during the quarter, which is down from last year when the company’s earnings-per-share figure broke even during the third quarter. Operating expenses doubled to $7 million in the quarter versus the same quarter of 2008, due in part to costs of relocating the company's headquarters from Dallas to Paris, France, and costs related to the sale of subsidiaries.
President and CEO Craig McKenzie credited the sale of the company’s assets in Turkey and Hungary for allowing Toreador to move forward in paying down debt.
“We have recently repurchased an additional $9 million of our convertible senior notes, which reduces our debt from $110.3 million at the beginning of this year to a current level of $54.7 million. Reducing the company’s debt has contributed to our ability to create value for our shareholders in spite of the challenging economic environment,” McKenzie said in a statement.
SHALE GAS FROM USA to EUROPE EXXON FOLLOWS THE LIGHTS
November 7, 2009
Analysis of: Technology to Help Meet Germany's Cleaner Energy Future
Published at: www.bakerinstitute.org
Summary
Shale Gas has become a target for exploration and development in Lower Saxony, Mako Trough, Baltic, East Paris, Weald, Vienna, Cambrian Alum and Dadas in Turkey by companies like ExxonMobil, Shell, OMV, Falcon Oil and Gas, 3Legs Resources, Toreador Resources and EurEnergy Resources.
Analysis
ExxonMobil President Cejka revealed the corporate strategy to transfer the Barnett experience to crowded regions of word, the Europe, i.e. following the lights on a globe picture depicting lights in the evening.
This strategy is pointing both the targeting of Exxon’s gas development activities to shorter distances between gas source and gas consumption markets and the gained experience in the Barnett shale. Gas development is always hindered by the location, forcing companies to make economic decisions on pipelines or LNG type conversion methods. A gas development project in the middle of the most developed consumer market outside of the USA is therefore a desirable location. This would easily replace 5,000 feet waters in the remote or troubled parts of the world.
Shale gas is now playing a very significant role in the US domestic gas supply, blocking off the LNG imports with reduced LNG port utilization, making a gas supply overbalance in the US and world markets.
Shale gas activity is also creating a lot of upstream activity in the US, a very high rig count and utilization rate for more expensive operations for the land rigs and rig services. Due to the nature of extracting gas from low porosity and low permeability shale bodies, the work involves drilling 1,000 feet long horizontal sections with slotted liners and multi stage fracturing operations requiring substantial horse power. Barnett, Haynesville, Marcellus, Fayetteville, Woodford and Eagleford shale wells costs from $ 2 to $ 8 Million and thousand of well locations are in the books of majors and independents.
European shale basins of Lower Saxony basin in Germany, Mako Trough in Hungary, Baltic Basin in Poland, East Paris Basin in France, Weald Basin in England, Vienna Basin in Austria, Cambrian Alum basin in Sweden, Dadas formation in Turkey are all development targets of larger companies of ExxonMobil, Shell, OMV and smaller companies of Falcon Oil and Gas, 3Legs Resources, Toreador Resources and EurEnergy Resources.
New Press Release Out Today
Up Again Today, Over $9.00 now!
Source: Toreador Resources Corporation
On 8:30 am EST, Wednesday November 4, 2009
PARIS--(BUSINESS WIRE)--Toreador Resources Corporation (Nasdaq: TRGL - News) will release its third quarter 2009 earnings on Monday, November 9, 2009, before the market opens. There will be a conference call the same day at 11:00 a.m. Eastern to discuss financial results and current operations. The conference leader will be Craig M. McKenzie, President and Chief Executive Officer.
Approximately 10 minutes before the conference call participants who wish to ask questions during the call should dial 1 (877) 941-6009 from within the U.S. or 1 (480) 629-9771 from outside the U.S. and provide the conference ID# 4174645 to access the call.
Those who wish only to listen to the live audio webcast may access the webcast via Toreador’s internet home page at www.toreador.net by selecting the “Investor Relations” link on the home page and then selecting the “Conference Call” link.
Those unable to participate in the live call may hear the rebroadcast for up to twelve months after the conference call at www.toreador.net by selecting the “Investor Relations” link on the home page and then selecting the “Conference Call” link or may dial 1 (800) 406-7325 within the U.S. or 1 (303) 590-3030 from outside the U.S., access code 4174645, to listen to a replay of the call. Phone replays will be available for 14 days after the call.
ABOUT TOREADOR
Toreador Resources Corporation is an independent international energy company engaged in the acquisition, development, exploration and production of natural gas and crude oil. The company holds interests in developed and undeveloped oil properties in France. The company’s website, www.toreador.net provides more information about Toreador.
Contact:
Toreador Resources CorporationShirley Z. Anderson, 469-369-8531Corporate Secretarysanderson@toreador.net
The information below mostly concerns North American Oil Shale property. What happens here will happen in France. The Toreador Resources, 100% positions in France will be worth millions, if they care to sell some of them. A lot of liquid crude oil, millions of barrels, will be drilled first. TRGL has a lock on the French market right now! Below info was posted today:
Posted: Nov 03, 2009 09:04 AM by Eric Fox
Tickers in this Article: BP, STO, CXG, CNX, PXP, CHK, GDP
Exploration and production companies that had the foresight to recognize the value of shale plays and accumulated acreage there early are benefiting from a cost advantage over slower rivals due to lower land costs. This can even lead to a situation where a company has a negative cost basis in its land leasing expense.
Land leasing expense refers to the cost to lease mineral rights from owners in plays that a company is involved in. The company will usually pay a per-acre fee up front, and then a percentage of the revenues once the well is producing.
Joint Shales
Goodrich Petroleum (NYSE:GDP) was fairly early into the Haynesville Shale, and had lower than average land leasing costs. In 2008, the company entered into a joint venture with Chesapeake Energy (NYSE:CHK), and received $178 million for partial interests totaling 10,250 net acres.
Since the acreage had increased so much in value over the last few years, the payment from Chesapeake Energy offset the total cost of its land expense, giving Goodrich Petroleum a negative cost basis. The transaction led to a $2,500 credit per acre for Goodrich Petroleum. This will, of course, lead to higher returns for the company and shareholders.
Chesapeake Energy benefited from this as well, when it entered into some joint ventures in 2008. In the Haynesville Shale, the company entered a joint venture with Plains Exploration & Production Company (NYSE:PXP), and received $3.1 billion. The company did a similar deal for its Marcellus Shale acreage, entering into a joint venture with Statoil Hydro (NYSE:STO) and received $3.375 billion in upfront cash and drilling carries. In the Fayetteville Shale, this time it was BP Inc. (NYSE:BP) that did the deal. Chesapeake Energy received $ 1.9 billion in cash and drilling carries form BP, Inc., in that joint venture.
The Numbers Game
One-way to look at these companies is as value investors, like in the stock market, with a longer-term time horizon. The assets are bought at low prices years ago, and then sold later on when the market realizes its value.
CNX Gas Corp (NYSE:CXG) also has low cost acreage, but for a different reason. The company received much of its Marcellus Shale acreage in fee from its parent CONSOL Energy (NYSE:CNX). CNX Gas then does not pay to lease the acreage, and will typically have a 100% revenue interest in its wells here because it does not pay a royalty out to a landowner.
The Bottom Line
The exploration and production companies that were late to the shale plays in North America are paying dearly for it, providing a boost to those companies that took the chance and entered the play early. This cost advantage might come in handy in the future.
The Race Is On!
California Investment Bank Initiates Coverage Of Toreador Resources
Posted on 11/03/09 at 8:02am
IRVINE, Calif., Nov. 3, 2009 (GLOBE NEWSWIRE) -- C. K. Cooper & Company, an independent, full-service investment bank, headquartered in Irvine, Calif. announced today that it has initiated coverage of Toreador Resources Corp. (Nasdaq: TRGL).
"Toreador is deploying new technology to unlock a huge source of oil that lies beneath their Paris Basin acreage in France. If successful, it could be the largest oil shale project outside of North America," said Joel Musante, Senior Research Analyst with C. K. Cooper & Company.
C. K. Cooper & Company
C. K. Cooper & Company is a full-service investment bank headquartered in Irvine, California. The Company is focused on providing superior and insightful research coverage to its clients; innovative investment banking solutions supported by sales and trading services; and portfolio advisory and management services for private clients. Though C. K. Cooper & Company has been noted for a variety of measures of accomplishment, we chart our success by only one metric: The growth of our clients. For more about C. K. Cooper & Company, visit www.ckcooper.com.
C. K. Cooper & Company is a member of the Financial Industry Regulatory Authority, CRD number 106578.
The information contained herein is not a complete analysis of every material fact respecting any company, industry or security. Although opinions and estimates expressed herein reflect the current judgment of C. K. Cooper & Company, the information upon which such opinions and estimates are based is not necessarily updated on a regular basis; when it is, the date of the change in estimate will be noted. In addition, opinions and estimates are subject to change without notice. This Report contains forward-looking statements, which involve risks and uncertainties. Actual results may differ significantly from the results described in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in "Investment Risks." C. K. Cooper & Company from time to time perform corporate finance or other services for some companies described herein and may occasionally possess material, nonpublic information regarding such companies. This information is not used in the preparation of the opinions and estimates herein. While the information contained in this Report and the opinions contained herein are based on sources believed to be reliable, C. K. Cooper & Company has not independently verified the facts, assumptions and estimates contained in this Report. Accordingly, no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions contained in this Report. C. K. Cooper & Company, its managing directors, its affiliates, and/or its employees may have an interest in the securities of the issue(s) described and may make purchases or sales while this report is in circulation.
CONTACT: C. K. Cooper & Company (949) 477-9300 Facsimile: (949) 477-9211 administration@ckcooper.com North Shore Public Relations, Inc. Media Contact: Renae Placinski (847) 945-4505 Facsimile: (847) 945-3755 renae@northshorepr.com.
I believe you are right. Since TRGL is not followed by a large number of investors, it just follows the market like an Index Fund right now. The big bang is coming , possibly very soon. Drilling on well No. 1, starts in France this month. It will be followed very quickly by drilling on 6 more wells, in the same area. Toreador is drilling first in the places where they know oil is available without a lot of complicated work. Well No.1 is expected to bring in 900 barrels a day. 30 million barrels are expected to be in the area drilled first. TRGL has a 100% interest in these wells. Not being a major, they will need a partner, or partners, to complete all their planned drilling. They will still retain the majority of the properties. The French Government has approved the sale of these oil properties to TRGL. And a few former French Government officials are now on the TRGL Board of Directors. Other French financial experts are handling money matters for Toreador Resources.
Bought up another small block this morning...Trying to load up before this thing takes off! Expect a big jump here in the next two weeks. The big news is going to be coming soon...No pump needed for this stock. The finanials coupled with present as well as future projects will shoot this stock into the stratosphere...imho.
'If you've got them by the balls, their hearts and minds will follow'
- John Wayne
Up 46 cents today. The stock is moving with the market, absent any news. News, good I hope, should soon be coming from the company. The fist well in the Paris oil basin will start drilling next month. Soon after, 6 more wells will start their drilling, in the same area. These are considered , by the company, as easy to drill and sure shots. The first well is expected to bring in 900 barrels a day. TRGL started with the easy to drill, sure shot wells to bring in money for the next round of drilling. As of now, they own 100% of the oil. They will need partners for all the drilling they are planning and they will just make the companies partners based on the percentage of their contribution.
Nice Day! Up 47 cents. More to come. The next few months will have a number of up days and the usual profit taking by day traders!
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Toreador Resources is a well-rounded independent oil and gas company. An international explorer and producer, the company has a promising inventory of producing properties and exploratory prospects in Turkey, France, Romania and Hungary.
In early 2004, Toreador sold its U.S. mineral and royalty assets, which repositioned the company as an international explorer and developer. The sale empowered the company to take advantage of higher-potential exploration opportunities overseas that create greater long-term value for investors.
In 2004, Toreador along with its joint venture partners TPAO (the Turkish national oil company) and Stratic Energy discovered natural gas in the shallow coastal waters of the Turkish Black Sea. This is the first commercial discovery ever in these waters and has opened up a new frontier for hydrocarbon exploration.
Toreador Resources Corporation, together with its subsidiaries, engages in oil and natural gas exploration, development, production, leasing, and acquisition activities. The company holds the right to explore and develop oil and natural gas properties in offshore and onshore Turkey, Hungary, Romania, and France. Its properties include the Western Black Sea Permits, the South Akcakoca Sub-Basin, the Eregli sub-Basin, the Thrace Black Sea Permits, the Sea of Marmara Permit, the Central Black Sea Permits, the Eastern Black Sea Permit, the Van Permit, the Adiyaman Permits, and the Bakuk Permit in Turkey; Szolnok Block and Tompa Block in Hungary; the Viperesti Permit, the Moinesti Permit, and the Fauresti Rehabilitation Permit in Romania; and the Charmottes Field, the Neocomian Complex, the Courtenay Permit, the Nemours Permit, the Aufferville Permit, the Rigny Permit, the Joigny Permit, the Malesherbes Permit, and the Mairy Permit in France. As of December 31, 2007, the company held interests in approximately 5.9 million gross acres and approximately 4.8 million net acres; and had estimated net proved reserves of 13.3 million barrels of oil equivalent. Toreador Resources, formerly known as Toreador Royalty Corporation, was founded in 1951. The company is headquartered in Dallas, Texas.
The company is drilling for conventional crude oil. Don't be confused by the term "shale oil". Toreador isn't after the oil bearing rocks, know as oil shale. They want liquid crude oil in an area that has a lot of shale.
Toreador has completed a review of its conventional growth opportunities in France and is working towards the expedited spud of the La Garenne well scheduled for late 2009 pending regulatory approvals. The Company believes the well has low risk and is forecast to prove up to 30 million barrels of oil in place, which should expose the Company to a two-fold potential increase in net barrels of proved and probable reserves. The Company has a 100% interest in the well.
Paris Basin Shale Oil.The Company is pursuing the exploitation of unconventional resources in the Paris Basin, which is a transformational growth opportunity. Toreador's work in this area has shown that the Paris Basin has exceedingly similar characteristics to the Bakken Formation in the Williston Basin (North America). The Company has the right to develop 649,000 acres (with an additional 153,000 acres pending regulatory approval) in the heart of the Paris Basin where an estimated 65 billion barrels of oil are believed to remain in the source rock that is located between the long-producing conventional reservoirs of the Paris Basin.
The Company intends to use its proven U.S. experience with the Bakken Formation in Europe to exploit the vast resources that are demonstrated to be in the Paris Basin, using technologies commonplace in the U.S., but not yet employed in Europe. Pursuit of the Paris Basin Oil Shale will comprise four phases, with the scope of the latter three phases depending on previous results. The Company's current focus is on implementing Phase 1 through the end of 2010.
© 2009 Toreador Resources Corporation. All rights reserved. Legal Information | Glossary
Toreador Resources Corp.
13760 Noel Road
Suite 1100
Dallas, TX 75240-1383
Phone: 214-559-3933
Fax: 214-559-3945
Web Site: http://www.toreador.net
Headquarters:
Toreador Resources Corporation
9 rue Scribe
75009 Paris, France
Tel: 33 (0) 1 47 03 34 24
Fax: 33 (0) 1 47 03 33 71
Toreador welcomes inquiries from investors, the media, business associates and others. Please contact:
Shirley Anderson, Corporate Secretary
Toreador Resources Corporation
13760 Noel Road, Suite 1100
Dallas, TX 75240-1383
(214) 559-3933 phone
(214) 559-3945 fax
Email Toreador Resources
Fundamentals
52 Week High 12.39
52 Week Low 1.96
YTD Price Percent Change 45.64%
Beta (5-Year) 1.10
Market Cap (Total, All Common Classes) (mil) 184
As of 06/06/08
Shares Outstanding
Volume (10 Day Average) (mil) 126
Shares Outstanding (Total, All Classes) (mil) 19.94
Shares Outstanding Average, latest FYE (mil) 18.36
Float: 15.31M
% Held by Insiders1: 36.88%
% Held by Institutions1: 49.90%
Income Statement
Net Sales 41.69
Gross Profit 26.95
Income Before Taxes -86.14
Net Income -74.42
Fiscal Yr. Ending - 12/31/07
Valuation Ratios
Price to Earnings -2.22
Price to Revenue 3.87
Price to Book 1.15
Price to Cash Flow -7.04
Weekly Five-Year Charts
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