Re: Toreador begins drilling - b2b
in response to
by
Falcon is a global energy company with projects in Hungary, Australia & South Africa
Developing large acreage positions of unconventional and conventional oil and gas resources
Message: Toreador begins drilling
>Thank you Lanman,
You're quite welcome db
>Toreador, I remember this company from the time that Beam used to mention it in another board.
Toreador has been in Hungary for quite some time, drilling in both the Tompa and Szolnok blocks. The Szolnok block didn't work out too well for them....too much CO2.
The Tompa block, which is located next to the Mako trough, could be more promising.
It's worth following what their doing to see how long it takes to drill and what the costs are. For the well they just started, Delta Hydrocarbons, the operator, budgeted $17 million for drilling and completion.
As far as their share price performance, it's also interesting that one of their shareholders sent them a letter not too long ago explaining to management what changes they should make.
These are my favorite paragraphs from the letter:
-- Immediately refocus the Company's efforts on its core operations in France and its tremendous exploration potential on the Tompa Block in Hungary;
-- Significantly cut Toreador's exploration efforts in Hungary (apart from the Tompa Block), reduce the headcount of its local staff in Hungary and freeze the entire exploration program that is not free-carried in France and Hungary. The Company has repeatedly oversold its exploration potential and has been unwisely spending cash on exploration failures. We need not remind you of Toreador's disastrous operational record with the drilling of 12 dry holes in a row.
You can read the entire thing here:
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