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SCHEDULE 14A INFORMATION
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[ ] Definitive Proxy Statement
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240.14a-12
TOREADOR ROYALTY CORPORATION
(Name of Registrant as Specified In Its Charter)
TOREADOR ROYALTY CORPORATION
(Name of Person(s) Filing Proxy Statement)
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[ X ] $125 per Exchange Act Rules 0-11(c)(1)(ii), 14a-6(i)(1), or 14a-6(j)(2).
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[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.
1) Title of each class of securities to which transaction applies:
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2) Aggregate number of securities to which transaction applies:
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3) Per unit price or other underlying value of transaction
computed pursuant to Exchange Act Rule 0-11:(1)
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4) Proposed maximum aggregate value of transaction:
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5) Total fee paid:
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[ ] Fee paid previously with preliminary materials
[ X ] Check box if any part of the fee is offset as provided by Exchange Act
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was paid previously. Identify the previous filing by registration
statement number, or the Form or Schedule and the date of its filing.
1) Amount Previously Paid:
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2) Form, Schedule or Registration Statement No.:
Schedule 14A....................................................
3) Filing Party:
Toreador Royalty Corporation....................................
4) Date Filed:
April 8, 1996...................................................
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[LOGO]
TOREADOR
ROYALTY
CORPORATION
PRESENTATION TO
BREAN MURRAY, FOSTER SECURITIES
NEW YORK
APRIL 10, 1996
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TOREADOR ROYALTY CORPORATION
PRESENTATION TO
BREAN MURRAY, FOSTER SECURITIES
Peter R. Vig
Chairman and Chief Executive Officer
NEW YORK
APRIL 10, 1996
First, I want to thank you for being here today as well as to thank
Phil Putnam and Brean Murray for hosting this meeting.
Most of you are familiar with Toreador and the fact that we own
530,000 net (870,000 gross) mineral acres spread over four geologic provinces
in the Texas Panhandle and West Texas. I am going to talk about these four
areas and the level of activity we anticipate over the balance of 1996 and
looking into 1997. First, a couple of comments on 1995 results.
Reserves and present value reached record levels in 1995, being
1,004,000 BOE versus 900,000 BOE at the end of 1994. Oil reserves were up
approximately 23 percent while gas reserves were essentially flat. Higher oil
and gas prices combined with the increase in our oil reserves resulted in a
present value, pre-tax, discounted at 10 percent, of $6.011 million, up 22.5
percent. Of that amount approximately 40 percent were royalties and 60 percent
were working interests. Oil production was up 24.0 percent in 1995 and gas
production was down 9.4 percent.
Cash flow before exploration expense was $181,000 in 1995 versus
$499,000 last year, the difference being $200,000 in expenses related to a
proxy contest. In addition, lease bonuses and rentals were $139,000, down from
$396,000 in 1994, which included a large lease selection from a 3-D seismic
option as well as a new 3-D option.
DALHART BASIN
This is an area primarily prospective for Pennsylvanian Age Granite
Wash oil reservoirs, trapped on fault associated structures. Secondary
objectives include Penn and Wolfcamp Reefal anomalies as well as Wolfcamp
structural- stratigraphic traps.
Of immediate interest to Toreador is a large structural feature we
call the Cobre Prospect located on the
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western edge of the Fulton Ranch along the east flank of the Bravo Dome. This
prospect, which is defined by six 2-D seismic lines, covers approximately two
square miles. We anticipate a 5,000 foot well to test both Granite Wash and
Wolfcamp objectives being drilled on this prospect in early June, with Toreador
having a carried 25 percent working interest to casing point as well as a 15
percent royalty interest.
Elsewhere in the basin we have a ready-to-drill Granite Wash prospect
(Sand Creek) based on 3-D seismic, plus we are having preliminary discussions
with two public companies regarding new, large 3-D seismic projects.
MATADOR ARCH
The Matador Arch is a linear horst feature trending east-west across
north-central and west Texas, crossing Toreador's acreage in Motley & Cottle
Counties, Texas. In late 1994, Toreador, with its partners, discovered the
Matador Field, which produces from a Wolfcamp Reef at 3,200 feet. To date this
field has had seven wells drilled, resulting in five producers and two dry
holes. Estimated reserves are 100,000 barrels per well. In 1995, Toreador
acquired an additional 12.5 percent working interest in the field, bringing its
interest to a 37.5 percent working interest as well as its 15.0 percent royalty
interest.
Toreador is presently marketing two 3-D projects north and west of the
Matador Field. Part of this acreage is immediately adjacent to the Roaring
Springs complex of three Wolfcamp Reef fields, which have produced in excess of
nine million barrels of oil. Immediately east of and adjacent to our projects,
an independent has announced a large 3-D seismic survey covering more than 50
square miles.
PALO DURO BASIN
In 1995, Toreador and its 50 percent partner conducted a 3,000 acre
3-D survey over our West Cee Vee prospect. This survey defined a Canyon Reef
Prospect which we are currently marketing. This will require a shallow (5,200
foot) well, with unrisked reserve potential for the prospect estimated at 1.5
million barrels.
EASTERN SHELF
In 1995, an independent operator conducted a 3-D survey covering
approximately 8,000 acres on the Pitchfork Ranch in Dickens County, Texas,
which showed several
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prospects for Tannehill (Permian) Age channel and bar sands at approximately
4,000 feet. Toreador was carried for a 21 percent working interest in the
seismic survey and, in addition, holds a 9.4 percent royalty interest. The
operator selected 2,000 acres for lease and in March 1996 drilled a dry hole on
the first prospect. The 3-D data set is currently being reinterpreted to
incorporate the information from the first well. Our working assumption is
that a second well will be drilled by the end of June.
ACQUISITIONS
Since 1988 Toreador has supplemented its exploration activity with
small acquisitions, including 1995, when the company added 87,500 barrels of
oil equivalents. We are also interested in acquiring larger properties.
Earlier this year, with a 50 percent partner, we pursued an acquisition for a
group of minerals which ultimately sold for more than $20 million. Since
then, we have formed an alliance with an independent to accelerate and enhance
our efforts to acquire producing royalty and mineral interests.
SUMMARY
Toreador's focus is on exploiting its mineral acreage. The business
plan includes seeking joint venture partners for the larger, more expensive 3-D
seismic projects. On selected projects, Toreador may elect to participate as a
working interest partner where the reserve potential justifies the risk.
Like many small capitalization energy stocks, the company's shares
have languished in the market place. In late 1995, the company announced a buy
back authorization for 100,000 shares, or just under 2 percent of the company.
We are close to completing the buyback and the board will consider another
repurchase in light of our exploration and acquisition opportunities, our
balance sheet, and the then price of the stock.
Any forward-looking statements herein are subject to certain risks and
uncertainties inherent in petroleum exploration, development and production,
including, but not limited to, such factors as the timing of wells; the timing
and results of 3-D seismic projects; reserve potential; and economic
conditions affecting oil and gas prices, all of which are beyond the control of
the company. Any one or more of these factors could cause actual results to
differ materially from those expressed in any forward looking statement.
