The drilling and seismic acquisition program in Hungary, projected to cost approximately $10 million, is planned to take place in 2008. The exploration program will be funded by four joint venture partners, who have agreed to pay 100% of the program’s cost to earn an aggregate of 75% working interest.
Toreador will retain a 25% working interest in the JV and will be the operator. The partners include three independent oil and gas exploration companies, one of which presently operates in Hungary.
Nigel Lovett, president and CEO of Toreador, said: This is the first in a series of joint venture agreements we are pursuing to fund our exploration programs in 2008 and 2009. There has been good interest from multiple parties in farm-out arrangements in all our countries. We expect to announce additional agreements in Turkey and France in the first quarter of 2008.
