Toreador Resources addresses shareholder's concerns

By Lisa Kerner

Charlotte, N.C., Dec. 22 - Toreador Resources Corp.'s board of directors said it is focused on all the issues raised by shareholder Nanes Balkany Partners in a Dec. 4 letter to the board.

In its Dec. 22 letter to the shareholder, Toreador said it is working "diligently" to close the sale of a 26.75% interest in the company's Turkish asset, the South Akcakoca Sub-Basin. Proceeds from the sale will be used to reduce debt, Toreador said.

"Our goals are aligned with yours on this issue," Toreador said to Nanes Balkany.

According to Toreador, it has cut its general and administrative budget for 2009 to less than $10 million, or about 40% below last year's level.

The Dallas oil and gas company said it has considered relocating its headquarters to Europe but believes "the costs and potential upheaval outweigh any benefits to be achieved."

Regarding Toreador's short-term stockholder rights plan, company chairman, president and chief executive officer Nigel Lovett said the plan is "consistent with the desires of RiskMetrics Group/ISS to accommodate the needs of the stockholders and not entrench management."

Nanes Balkany, in its letter to the board, suggested Toreador:

• Reduce its debt and overhead expenses;

• Begin a share buyback program for at least 2 million shares; and

• Retain an investment bank to begin an open-bid process to sell certain Toreador assets.

Nanes Balkany, with a 5.1% interest, reserved the right to seek board representation if its concerns about Toreador's performance "continue to fall on deaf ears," it was previously reported.

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