Toreador is on track to begin its offshore drilling program in the shallow waters of the western Black Sea in late April with the spudding of the Akkaya-1 delineation well. This well is on trend with and located about 7 mi east of the Ayazli-1 discovery well. The Ayazli-1 well found natural gas in the South Akcakoca sub-basin in 2004.
Initial development plans for the South Akcakoca sub-basin include the drilling of three consecutive delineation wells. If successful, the wells will be completed and suspended as future producers. Toreador will have the option to drill up to five additional wells using the same rig that drilled the first three wells. Phased development of the South Akcakoca sub-basin is planned with production beginning in the second half of 2006. Toreador is operator and holds a 36.75% working interest in this acreage.