Toreador to explore strategic alternatives

AP News
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Posted: Nov 13, 2009 12:16 PM

French oil and natural gas company Toreador Resources Corp. said Friday it will consider a range of strategic alternatives, which include raising funds through equity or debt offerings, taking out a line of credit, equity investments and a possible partnership with its primary growth property, the Paris Basin Oil Shale.

Toreador said it created a special board and hired RBC Capital Markets to evaluate the company's options.

Over the past nine months Toreador has taken many steps to bolster its liquidity, which include selling its Turkish assets, cutting debt and lowering its costs. In October, in an effort to focus on its properties in France, the company sold its Turkish assets to Tiway Oil for $10.6 million plus exploration success payments of up to $40 million and contingent future net profit payments.

Toreador cautioned that there are no guarantees that the talks will result in any changes. It does not plan to disclose any information from the discussions until, if ever, a specific decision is approved or if the board terminates the process.

Shares of the company fell 30 cents, or 3.4 percent, to $8.52.