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Toreador, Stratic partner for exploration well off Turkey

By OGJ editors
HOUSTON, June 4 -- Dallas-based independent Toreador Resources Corp. has farmed out 25% of its 49% working interest in eight contiguous permits in the shallow waters in the western Black Sea off Turkey to Stratic Energy Corp. of Calgary.

Under the agreement, Stratic will fund one quarter of the costs of the Ayazli-1 exploratory well to earn a 12.25% working interest in the permits, which cover 3,893 sq km offshore. The well lies in about 250 ft of water on the South Akcakoca prospect and is 8 km offshore.

Toreador, serving as the well's operator through wholly owned subsidiary Madison Oil Turkey Inc., will pay 75% of the well's costs and will retain a 36.75% working interest. The well, Toreador estimates, will cost about $4.5 million to drill and is expected to spud in July.

Ayazli-1 well represents the first offshore well drilled in Turkish waters of the Black Sea in 5 years, Stratic said.

Toreador said it has identified six distinct gas prospects to date on the Black Sea acreage with per-prospect reserve potential ranging from 100 bcf to 1 tcf of gas. Stratic will pay 25% of the costs of the 1,275 line km of 2D seismic, which was acquired by Madison in 2002, over the four westernmost permits.

Turkish Petroleum Corp. (TPAO) will be carried on the Ayazli-1 well for a 51% working interest and has an option to participate in additional wells on Toreador's Black Sea prospects on this acreage for a 51% working interest.

The primary objective of the well is a tertiary gas sand that tested 3.7 MMcfd of gas from Akcakoca-1, an exploration well drilled by TPAO in 1975 on a separate structure to the north of Ayazli but within the permit area. The secondary objective is a Mesozoic oil zone that was indicated on logs in the same well but was never tested due to mechanical problems in the well.

Toreador estimates potential gas reserves on the Ayazli structure to be about 350 bcf. Assuming Ayazli-1 is successful, further drilling will be planned in early 2005.

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