Oil and natural gas producer Toreador Resources Corp. (TRGL) Friday reported a wider loss in the second quarter hurt by higher expenses and impairment charges resulting from a letter of intent for the sale of interest in Turkish Black Sea assets. Oil and natural gas sales rose 99% over the prior-year quarter. Subsequent to the news, company's shares rose 12.04% on the Nasdaq.
During the quarter, the company executed a letter of intent to sell 26.75% of the company's 36.75% interest in the South Akcakoca Sub-basin natural gas project and eight contiguous exploration blocks in the Turkish Black for gross proceeds of $80.25 million.
Proceeds from the transaction, expecting completion in the fourth quarter, would be used to reduce debt and for general corporate purposes. Toreador would retain a 10% working interest in the joint venture created.
Loss available to common shareholders widened to $65.77 million or $3.33 per share from $25.05 million or $1.32 per share in the same quarter a year ago.
Oil and natural gas sales almost doubled to $19.86 million from $9.96 million in the prior-year quarter primarily due to higher realized prices for oil and gas and increased natural gas production offshore Turkey.
Operating costs and expenses were $83.61 million, up from $20.17 million in the corresponding quarter last year. Operating loss widened to $63.7 million from $10.2 million in the year-ago quarter due to an asset impairment charge of $53.5 million, resulting from a letter of intent for the sale of company's interest in the Turkish Black Sea assets.
Production increased to 237 thousand barrels of oil equivalent or 30% higher than second quarter of 2007.
For the six-month period, loss available to common shareholders widened to $70.19 million or $3.56 per share from $33.90 million or $1.93 per share in the prior-year period.
Oil and natural gas sales more than doubled to $33.8 million from $16.8 million in the year-ago period.
TRGL is currently trading at $7.90, up $0.85 or 12.04%, on a volume of 0.13 million shares.
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