Toreador Reports Fourth Quarter 2005 Financial Results and Provides Operational Update

-- EBITDAX (a non-GAAP financial measure reconciled below) of $3.2 million, up 19% from $2.7 million in the fourth quarter of 2004

-- Operating income of $109 thousand, compared to an operating loss of $619 thousand in the same period of 2004

-- Total revenues of $8.5 million, up 33% from the fourth quarter of 2004

Toreador Resources Corporation (NASDAQ: TRGL) today announcedfinancial results for the fourth quarter of 2005.

For the fourth quarter of 2005, Toreador reported income availableto common shares of $2.4 million, or $0.15 per diluted share, comparedto a loss of $362 thousand in the fourth quarter of 2004, or a loss of$0.03 per diluted share. Diluted weighted average shares outstandingin the fourth quarter of 2005 were 16.8 million, compared to 9.7million diluted weighted average shares outstanding in the fourthquarter of 2004.

Operating income in the fourth quarter of 2005 was $109 thousand,compared to an operating loss of $619 thousand in the fourth quarterof 2004. Total revenues for the three months ended December 31, 2005were $8.5 million, compared to $6.4 million for the same period in2004. The average realized price in the fourth quarter of 2005 was$52.92 per barrel of oil equivalent (BOE), compared to $39.55 per BOEin the fourth quarter of 2004.

Earnings before interest, taxes, depreciation, amortization andexploration expense (EBITDAX, a non-GAAP financial measure reconciledbelow) was $3.2 million in the three months ended December 31, 2005compared to $2.7 million for the three months ended December 31, 2004.

"Toreador is entering a period of significant growth," said G.Thomas Graves III, President and Chief Executive Officer of Toreador."We began 2006 with a production rate of approximately 1,600 barrelsper day equivalent. During the first quarter we added roughly 500barrels of oil per day of production in France, and by the end of thequarter should add another 1,100 barrels per day equivalent ofproduction in Romania, which we believe will be the first ever salesof natural gas produced by a foreign company in that country. At thatpoint, our production rate will be approximately twice the rate westarted with at the beginning of 2006 . When the first phase ofproduction from the South Akcakoca Sub-basin offshore Turkey isbrought on-line in the second half of the year, our share of theproduction should be approximately 3,500 barrels per day equivalent ofnatural gas. By the end of the year we expect to have grown ourproduction rate by nearly four times from the rate at the beginning ofthe year."

In the fourth quarter of 2005, Toreador's oil and gas productionwas approximately 163 thousand barrels of oil equivalent (MBOE)compared to 165 MBOE during the same period last year. The averagerealized price of oil in the fourth quarter of 2005 was $53.04 perbarrel compared to $40.33 per barrel in the fourth quarter of 2004, anincrease of 32%. The average realized price of natural gas in thequarter ended December 31, 2005 was $8.73 per thousand cubic feet(Mcf), compared to $5.85 per Mcf for the same period last year, anincrease of 59%.

At year end, estimated proved reserves were approximately 15.0million barrels of oil equivalent (MMBOE) compared to 13.8 MMBOE atDecember 31, 2004, an increase of 9%. The discounted present value at10% (pretax) of reserves at year end (a non-GAAP financial measurereconciled below) was $224.8 million compared to $115.1 million atDecember 31, 2004, an increase of 95%. An average realized oil priceof $56.24 per barrel and an average realized natural gas price of$6.98 per Mcf were used to calculate reserves at December 31, 2005.

FULL YEAR RESULTS

For the full year of 2005 Toreador reported income applicable tocommon shares of $6.3 million or $0.42 per diluted share, compared toincome available to common shares of $24.3 million, or $1.97 perdiluted share, for the same period last year. In 2004 we sold our U.S.producing and non-producing mineral and royalty portfolio whichresulted in income from discontinued operations of $17.5 million, or$1.37 per diluted share.

Operating income in 2005 was $4.7 million, up 194% compared to$1.6 million in 2004. Total revenues in 2005 were $30.9 million, up47% compared to $21.0 million in 2004. EBITDAX (a non-GAAP financialmeasure reconciled below) was $14.1 million, up 66% compared to $8.5million in 2004

In 2005, Toreador's oil and gas production was approximately 624MBOE compared to approximately 634 MBOE in 2004. The average realizedprice of oil in 2005 was $50.17 per barrel, compared to $35.24 perbarrel in 2004, an increase of 42%. The average realized price ofnatural gas in 2005 was $7.56 per Mcf compared to $5.65 per Mcf in2004, an increase of 34%.

OPERATIONAL UPDATE

Turkey

Offshore Turkey, the Akkaya-2 well has been drilled through theEocene-age Kusuri formation, and has confirmed the presence of naturalgas on the northern flank of the Akkaya structure. Logs indicateapproximately 21 meters of net pay from 1,040 meters to 1,120 meters,which was in line with expectations. The well will be tested next weekand results will be released when work is completed.

In extended testing of the Dogu Ayazli-1 well, the production ratefrom the bottom 10 meters of pay improved to over 9.0 million cubicfeet of gas per day (MMcfd) from an initial rate of 7.3 MMcfd aspreviously reported. The Prometheus jackup rig has finished operationson the Dogu Ayazli-1 and has spudded the Dogu Ayazli-2, which is beingdrilled towards the northwest flank of the Dogu Ayazli structure.

Atwood Oceanics has informed the company that the operatorcurrently employing the Southern Cross has scheduled a well that willbe longer in duration than originally anticipated. As a result of thisunexpected event, the arrival of the Southern Cross is now estimatedto be late in the third quarter, when it will be used to drill twowells for Toreador and its partners before drilling two wells foranother company in Bulgaria, and then returning to Turkish waters todrill an additional well. The delayed arrival will have no effect onthe delivery of first production in the second half of 2006 from theSouth Akcakoca Sub-basin.

Romania

Construction of the production facility for the Faurestirehabilitation permit is complete and the facility is undergoing finaltesting for operations. It is expected that the necessary permits tobegin selling natural gas will be granted in the coming weeks, andthat production will begin by the end of March. Initial productionrates are expected to be approximately 6 MMcfd of natural gas and 50barrels of condensate per day.

Hungary

In Hungary, Toreador plans to drill its first exploration well inthe northern part of the Szolnok block. The spud date is scheduled tobe in May. The well will be drilled in the Kenderes area to test apotential gas-bearing Tertiary-age Pannonian turbidite atapproximately 1,700 meters depth.

CONFERENCE CALL

A conference call to discuss fourth quarter 2005 results andoperational activities will be held today at 10:00 am Central, 11:00am Eastern time.

Active participants who wish to ask questions during theconference call should dial toll free 800-798-2884 (international dial1-617-614-6207), passcode 64205225 approximately 10 minutes before thescheduled call time to access the call.

Those who wish only to listen to the live audio webcast may accessthe webcast via Toreador's internet home page at www.toreador.net byselecting the "Investor Relations" link on the home page and thenselecting the "Conference Calls" link.

Those unable to participate in the live call may hear arebroadcast for up to twelve months after the conference call atwww.toreador.net by selecting the "Investor Relations" link on thehome page and then selecting the "Conference Calls" link or may dialtoll-free 888-286-8010 (international dial 1-617-801-6888), passcode74657356 to listen to a replay of the call. Phone replays will beavailable for 14 days after the call.

ABOUT TOREADOR

Toreador Resources Corporation is an independent internationalenergy company engaged in the acquisition, development, explorationand production of natural gas, crude oil and other income-producingminerals. The company holds interests in developed and undeveloped oiland gas properties in France, Hungary, Romania, Turkey and Trinidad.In the United States, Toreador primarily owns working interests infive states. More information about Toreador may be found at thecompany's web site, www.toreador.net.

Explanation and Reconciliation of Non-GAAP Financial Measures

Earnings before interest, taxes, depreciation, amortization andexploration expense (EBITDAX) is presented because of its acceptanceas an indicator of an oil and gas exploration and production company'sability to internally fund exploration and development activities andto service or incur additional debt. EBITDAX should not be consideredin isolation or as a substitute for operating income prepared inaccordance with generally accepted accounting principles. Table 1below reconciles EBITDAX with income from continuing operations asderived from the company's financial information.
Table 1: Reconciliation of EBITDAX to Income from continuing
operations

Three months ended Year ended
December 31, December 31,
($ thousands) 2005 2004 2005 2004
-------- ------- ------- -------
Income from continuing operations $ 2,424 $ 626 $ 6,905 $ 7,480

Income tax (benefit) provision (2,427) (2,680) (1,768) (3,576)
Interest expense 1,327 290 1,632 1,611
Interest and other (income) loss (1,117) (183) (1,706) (396)
Foreign currency exchange (gains)
losses 7 (233) (148) (5,044)
Turkish currency remeasurement - 1,140 - 1,140
(Gain) loss on sale of properties - 381 (12) 336
Equity in (gains) losses of
unconsolidated subsidiaries (105) 39 (222) 18
Depletion, depreciation and
amortization 1,362 970 4,243 3,538
Impairment of oil and gas properties 926 - 2,308 -
Exploration and acquisition cost 793 2,418 2,830 3,402
-------- ------- ------- -------
$ 3,190 $ 2,768 $14,062 $ 8,509
======== ======= ======= =======

The discounted present value at 10% (pretax) of reservesrepresents the discounted future cash flows attributable to our provedoil and natural gas reserves before income tax, discounted at 10%.Although it is a non-GAAP measure, we believe that the presentation ofthe discounted present value is relevant and useful to our investorsbecause it presents the discounted future net cash flows attributableto our proved reserves prior to taking into account corporate futureincome taxes and our current tax structure. We use this measure whenassessing the potential return on investment related to our oil andnatural gas properties. Table 2 below compares the discounted presentvalue at 10% (pretax) of reserves with the standardized measure ofdiscounted future net cash flows, which represents the present valueof future cash flows attributable to our proved oil and natural gasreserves after income tax, discounted at 10%.

Table 2: Discounted present value at 10% (pretax) of proved reserves
at December 31, 2005, compared to standardized measure of
proved reserves

At December 31,
---------------------
($ thousands) 2005 2004
---------------------
Discounted present value at 10% (pretax) $ 224,794 $ 115,142
Standardized measure of proved reserves $ 152,820 $ 75,112

Safe-Harbor Statement -- Except for the historical informationcontained herein, the matters set forth in this news release are"forward-looking statements" within the meaning of Section 27A of theSecurities Act of 1933, as amended, and Section 21E of the SecuritiesExchange Act of 1934, as amended. Toreador intends that all suchstatements be subject to the "safe-harbor" provisions of those Acts.Many important risks, factors and conditions may cause Toreador'sactual results to differ materially from those discussed in any suchforward-looking statement. These risks include, but are not limitedto, estimates of reserves, estimates of production, future commodityprices, exchange rates, interest rates, geological and politicalrisks, drilling risks, product demand, transportation restrictions,the ability of Toreador to obtain additional capital, and other risksand uncertainties described in the company's filings with theSecurities and Exchange Commission. The historical results achieved byToreador are not necessarily indicative of its future prospects. Thecompany undertakes no obligation to publicly update or revise anyforward-looking statements, whether as a result of new information,future events or otherwise.

TOREADOR RESOURCES CORPORATION
(in thousands, except as noted)

Three Months Twelve Months
Ended Ended
December 31 December 31
---------------- -----------------
SELECTED FINANCIAL RESULTS 2005 2004 2005 2004
---------------- -----------------
Revenues:
Oil and natural gas sales $ 8,508 $ 6,387 $ 30,856 $21,014
Other revenues - 14 - 14
------- ------- -------- -------
Total revenues 8,508 6,401 30,856 21,028

Costs and expenses:
Lease operating 3,604 1,837 9,976 6,873
Exploration and acquisition 1,719 2,418 5,138 3,402
Depreciation, depletion, and
amortization 1,362 970 4,243 3,538
General and administrative 1,714 1,795 6,818 5,646
------- ------- -------- -------
Total costs and expenses 8,399 7,020 26,175 19,459
------- ------- -------- -------
Operating income (loss) 109 (619) 4,681 1,569
Other income (expense) (112) (1,434) 456 2,335
Provision for (benefit from) income
taxes (2,427) (2,680) (1,768) (3,576)
------- ------- -------- -------
Income from continuing operations 2,424 627 6,905 7,480
Income (loss)from discontinued
operations, net of tax 22 (815) 47 17,539
------- ------- -------- -------
Net income 2,446 (188) 6,952 25,019
Dividends on preferred shares 40 174 684 714
------- ------- -------- -------
Income (loss) applicable to common
shares $ 2,406 $ (362) $ 6,268 $24,305
======= ======= ======== =======

Basic earnings per share $ 0.16 $ (0.04) $ 0.44 $ 2.54
======= ======= ======== =======
Diluted earnings per share $ 0.15 $ (0.03) $ 0.42 $ 1.97
======= ======= ======== =======

Weighted average shares outstanding:
Basic 15,540 9,775 14,274 9,571
Diluted 16,830 10,862 15,207 12,817

SELECTED OPERATING RESULTS
Production
Oil production (MBbl) 134 141 529 539
Natural gas production (MMcf) 174 147 569 566
Equivalent production (MBOE) 163 165 624 634

Prices
Average oil price per Bbl $ 53.04 $ 40.33 $ 50.17 $ 35.24
Average natural gas price per Mcf 8.73 5.85 7.56 5.65
Average equivalent price per BOE 52.92 39.55 49.44 35.00


December 31
----------------
2005 2004
----------------
SELECTED BALANCE SHEET INFORMATION
Cash $ 92,507 $ 4,977
Long-term debt 92,060 9,022
Stockholders' equity 133,184 63,258