TRGL Toreador Resources Corp. (MM)

Toreador Resources Corporation (NASDAQ: TRGL / NYSE Euronext Paris: TOR) today announced third quarter 2011 financial results.

• Year to date Revenue for the nine months ended September 30, 2011 of $28M (resulting from $25.1M in oil sales and $2.9M of Other Operating Income) compared to revenue of $33M for the same period last year.
• Third Quarter 2011 Revenue of $8.4M (resulting from $8.3M in oil sales and $0.1M of Other Operating Income) compared to revenue of $6.6M in the third quarter 2010.
• Production for the nine months ended September 30, 2011 of 234 MBOE.
• As of September 30, 2011, cash and cash equivalents (including restricted cash) balance of $7.6M.

Mr. Craig McKenzie, President and CEO of Toreador, said “This was a significant quarter for Toreador, one which will take the company to the next level and lay strong foundations for future growth. For our French operations, we maintained production, contained associated operating costs and benefited from a higher average realized oil price. We also received clarity on the regulatory framework in France that, in effect, allows drilling programs in the Paris Basin to recommence without the use of hydraulic fracturing."

McKenzie continued, “The key event of the quarter was our announced merger with ZaZa Energy. Combining with ZaZa gives our stockholders significant and immediate exposure to a fast-growing set of assets in the Texas Eagle Ford. We believe all our stakeholders recognize the compelling opportunity that this combination creates. Upon completion of the transaction, we expect to build a transatlantic, resource-focused exploration and production company with a unique presence in two world class resource basins.”

Toreador Q3 2011 Financial Results, Nov 9, 2011

THIRD QUARTER 2011 FINANCIAL RESULTS

                      (Unaudited) Three Months Ended September 30, Change Change ($ millions, except where noted) 2011       2010 (units) (%) Revenue and other income $ 8.4 $ 6.6 $ 1.9 28 % Sale and other operating revenue $ 8.3 $ 6.0 $ 2.5 39 % Other income $ 0.1 $ 0.6 $ (0.5 ) -89 % Operating (loss) income $ (1.4 ) $ 0.6 $ (2.1 ) -288 % Loss from discontinued operations $ (0.1 ) $ (0.3 ) $ 0.2 -58 % (Loss) available to common shares $ (2.8 ) $ (2.9 ) $ 0.1 -3 %

Basic income (loss) per share ($/share) - Cont.Ops

$ (0.10 ) $ (0.11 ) $ 0.01 -9 %

Diluted income (loss) per share ($/share) -Cont. Ops

$ (0.10 ) $ (0.11 ) $ 0.01 -9 % Capital expenditures $ 0.05 $ 0.03 $ 0.02 67 % Production (MBbl) 78.08 80.69 (2.62 ) -3 % Average realized price ($/Bbl) $ 107.1 $ 77.7 $ 29.4 38 %  

Revenue

Sales and other operating revenue

Sales and other operating revenue for the three months ended September 30, 2011 was $8.4 million, as compared to sales and other operating revenue of $6.0 million for the three months ended September 30, 2010. This increase is primarily due to the rise in global oil prices over the period, which led to an increase in the prices at which we sell our oil from an average of $77.67 per barrel in the three months ended September 30, 2010 to an average of $107.11 per barrel in the three months ended September 30, 2011. This increase was offset by a slightly lower production, decreasing from 81 MBbls in the three months ended September 30, 2010 to 78 MBbls in the three months ended September 30, 2011.

Other income

Other income includes all exploration, salary and general and administrative costs associated with TEF’s activities as operator of the exploration permits in the Paris Basin, which TEF is entitled to invoice to Hess under the Investment Agreement. For the three months ended September 30, 2011, $0.1 million was invoiced to Hess and recorded as “Other income” compared to $0.6 million in the same period last year, this decrease being due to reduced activity of the Company as operator of the exploration permits.

Operating costs and expenses

Lease operating expense

Lease operating expense was $2.4 million, or $30.97 per BOE produced, for the three months ended September 30, 2011, as compared to $3.0 million, or $36.76 per BOE produced, for the three months ended September 30, 2010. This decrease is due to a reduction of certain production costs associated with our conventional production compared to the same period last year, in particular Paris headquarter costs as well as higher repair and maintenance costs incurred last year. Lease operating expense for the three months ended September 30, 2011 also includes inventory turnover variation in an amount of $27,000.

Exploration expense

Exploration expense for the three months ended September 30, 2011 was $96,000, as compared to $201,000 for the three months ended September 30, 2010. This decrease is due primarily to the higher expenses the Company incurred in the same period last year associated with geological and technical studies in connection with our proof of concept project.

Depreciation, depletion and amortization

Depreciation, depletion and amortization for the three months ended September 30, 2011 was $1.6 million or $20.52 per BOE produced, as compared to $1.1 million or $14.00 per BOE produced for the three months ended September 30, 2010. This increase is primarily due to the reduction at the end of 2010 of the estimated life of wells used for the depreciation, depletion and amortization to comply with the legal maturity of our production concessions.

Accretion on discounted assets and liabilities

The accretion expense is composed of our asset retirement obligation expense. Accretion expense was $139,000 for the three months ended September 30, 2011 as compared to $246,000 (positive impact) for the three months ended September 30, 2010. This reduction in expense is due to an update of our asset retirement obligations at the end of 2010 and higher retirement cost estimates as well as a change of presentation of the accretion on our convertible notes which was included in this account during the same period last year and has now been reclassified to Interest Expense.

General and administrative before stock compensation expense

General and administrative expense, excluding stock compensation expense, for the three months ended September 30, 2011 totaled $5.4 million, as compared to $1.3 million for the comparable period in 2010. This increase is due to fees to advisors and counsels incurred in connection with the contemplated merger with Zaza Energy LLC., including $380,000 for communication advisors, $2.2 million for lawyers, $240,000 for auditors and $850,000 for financial advisor, or an aggregate amount of $3.7 million.

Stock compensation expense

Stock compensation expense was $0.6 million for the three months ended September 30, 2011 compared with $0.4 million for the three months ended September 30, 2010. During the three months ended September 30, 2011, no shares were issued compared to 67,187 shares in the comparable period last year.

Impairment of oil properties

There were no impairment charges for the three months ended September 30, 2011 and September 30, 2010.

Loss/Gain on oil derivative contracts

We recorded a gain on oil derivative contracts for the three months ended September 30, 2011 of $515,000 as compared to a loss of $105,000 in the three months ended September 30, 2010. This amount consists of an unrealized gain on the commodity derivative contracts with Vitol S.A as well as the margin calls related to this contract due to the Dated Brent price being higher than the selling price of $91.00 per barrel under the derivative contract. The unrealized gain on the oil derivative contract for the three months ended September 30, 2011 amounted to a gain of $1.5 million compared to a loss of 105,000 for the same period last year. The margin calls for the three months ended September 30, 2011 amounted to an expense of $1 million.

Foreign currency exchange gain (loss)

We recorded a loss on foreign currency exchange of $0.2 million for the three months ended September 30, 2011 compared with a loss of $1.2 million for the three months ended September 30, 2010. The reduction of the foreign exchange loss mainly is a result of Toreador Energy France booking a loss on foreign currency exchange in its statutory accounts in Euro at the end of the second quarter 2010 due to the receipt of the upfront payment from Hess under the Hess Investment Agreement.

Interest expense

Interest expense, was $0.4 million for the three months ended September 30, 2011 as compared to $2.7 million for the three months ended September 30, 2010.

The interest expense relates to interest payments relating to the New Convertible Senior Notes issued in February 2010. Interest expense was $554,000 for the three months ended September 30, 2011 and related to the New Convertible Senior Notes as compared to $1.0 million for the three months ended September 30, 2010 related to both the New Convertible Senior Notes and the 5.00% Convertible Senior Notes. Also included in interest expense are expenses related to the amortization of issue premium and debt issuance costs associated to the New Convertible Senior Notes of $139,000 recorded for the three months ended September 30, 2011 compared to $1.3 million for the three months ended September 30, 2010. This was offset by a positive accretion impact of $255,000 related to the fair value of the New Convertible Senior Notes.

The decrease in interest expense for the third quarter of 2011 compared to the same period of 2010 is explained by the recording for the three months ended September 30, 2010 of (i) amortization expense of $1.3 million due to the change in estimate of the lives of the issue premium and debt issuance costs associated to 5.00% Convertible Senior Notes and to the New Convertible Senior Notes and (ii) $404,000 interest expense relating to 5.00% Convertible Senior Notes.

Income tax (benefit) provision

An income tax provision of $ 711,000 was recorded in the three months ended September 30, 2011, compared to a tax benefit of $ (666,000) recognized for the three months ended September 30, 2010, this increase being due to the fact that an excess of provision for income tax payable in France was recorded in the second quarter of 2010.

Discontinued operations

We recorded in discontinued operations for the nine months ended September 30, 2011 and 2010 a loss of $3,203,000 and a loss of $1,113,000 respectively. This increase is mainly due to the settlement payment for an amount of $3.8 million on June 22, 2011, related to a settlement agreement with Mr. Hunnisett and Mr. Barker in which they agreed to release both Toreador and Tiway Turkey Limited from all current and future claims related to the Overriding Royalty, including the Netherby Payment Amount. The $3.8 million settlement amount was partially offset by a provision release booked in prior periods for this matter in an amount of $900,000. Sales and other operating revenue from discontinued operations for the nine months ended September 30, 2011 amounted to $38,000.

FINANCIAL RESULTS FOR THE NINE MONTHS ENDED SEPTEMBER 30TH 2011

                    (Unaudited) Nine Months Ended September 30, Change Change ($ millions, except where noted) 2011       2010 (units) (%) Revenue and other income $ 28.0 $ 33.0 $ (5.0 ) -15 % Sale and other operating revenue $ 25.1 $ 17.5 $ 7.6 43 % Other income $ 2.9 $ 15.6 $ (12.6 ) -81 % Operating (loss ) income $ (3.2 ) $ 12.8 $ (16.1 ) -125 % Loss from discontinued operations $ (3.2 ) $ (1.1 ) $ (2.1 ) 188 % Loss available to common shares $ (11.3 ) $ (3.9 ) $ (7.4 ) 190 % Basic loss per share ($/share) - Cont. Ops $ (0.31 ) $ (0.12 ) $ (0.20 ) 172 % Diluted loss per share ($/share) - Cont. Ops $ (0.31 ) $ (0.12 ) $ (0.20 ) 170 % Capital expenditures $ 0.19 $ 0.16 $ 0.02 17 % Production (MBbl) 234.37 241.40 (7.03 ) -2.9 % Average realized price ($/Bbl) $ 106.86 $ 74.81 $ 32.05 42.84 %  

Revenue

Sales and other operating revenue

Sales and other operating revenue for the nine months ended September 30, 2011 were $25.1 million, as compared to $17.5 million for the nine months ended September 30, 2010. This increase is primarily due to the rise in global oil prices, which led to an increase in the prices at which we sell our oil from an average of $74.81 per barrel in the nine months ended September 30, 2010 to an average of $106.86 per barrel in the nine months ended September 30, 2011.

Other income

Other income includes all exploration, salary and general and administrative costs associated with TEF’s activities as operator of the exploration permits in the Paris Basin, which TEF is entitled to invoice to Hess under the Investment Agreement. For the nine months ended September 30, 2011, $2.919 million was invoiced to Hess and recorded as “Other income” compared to $16 million recorded during the nine months ended September 30, 2010 consisting of the upfront payment of $15 million received from Hess following the execution of the Investment Agreement.

Costs and expenses

Lease operating expense

Lease operating expense was $8.5 million, or $36.29 per BOE produced, for the nine months ended September 30, 2011, as compared to $7.3 million, or $30.42 per BOE produced, for the nine months ended September 30, 2010.

This increase is mainly due to the reclassification (from June 2010 onwards) of certain costs associated with particular properties and mainly incurred in connection with our existing oil production and conventional reservoirs development as lease operating expenses following the strategic partnership with Hess. In addition, lease operating expense for the nine months ended September 30, 2011 also includes inventory turnover variation for in amount of $123,000.

Exploration expense

Exploration expense for the nine months ended September 30, 2011 was $0.9 million, as compared to $1.3 million for the nine months ended September 30, 2010. This decrease is due primarily to lower expenses associated with geological and technical studies the Company conducted and commissioned in connection with the proof of concept project in the Paris Basin for the nine months ended September 30, 2011 as compared to same period last year.

Depreciation, depletion and amortization

Depreciation, depletion and amortization for the nine months ended September 30, 2011 was $4.8 million compared to $2.8 million for the nine months ended September 30, 2010. This increase is primarily due to the reduction at the end of 2010 of the estimated life of wells used for the depreciation, depletion and amortization to comply with the legal maturity of our production concessions.

Accretion expense

Accretion expense for the nine months ended September 30, 2011 was 175,000 as compared to $-159,000 for the nine months ended September 30, 2010. The accretion expense is related to our as asset retirement obligation.

Impairment of oil and gas properties

There were no impairment charges for the nine months ended September 30, 2011 and 2010.

General and administrative before stock compensation expense

General and administrative expense, excluding stock compensation expense, was $ 11.9 million for the nine months ended September 30, 2011 compared to $ 7.0 million for the nine months ended September 30, 2010. General and administrative expense include (i) professional and legal fees in relation to the safeguarding of our exploration permits during the public debate in France regarding the ban on hydraulic fracking in the amount of $562,000 and (ii) cost and fees associated with the contemplated merger with Zaza Energy LLC. of $3.7 million.

Stock compensation expense

Stock compensation expense was $2.9 million for the nine months ended September 30, 2011 compared to $2.6 million for the nine months ended September 30, 2010.

Loss on oil and gas derivative contracts

We recorded a loss on oil and gas derivative contracts for the nine months ended September 30, 2011 of $2.0 million as compared to a gain of $709,000 for the nine months ended September 30, 2010. This amount consists of an unrealized gain on the commodity derivative contracts with Vitol S.A as well as the margin calls related to this contract with Vitol trading due to the Dated Brent price being higher than the selling price of $91.00 per barrel under the derivative contract. The unrealized gain/loss on the oil derivative contract for the nine months ended September 30, 2011 and 2010 amounted to a gain of $812,000 and a gain of $709,000 respectively. The margin calls for the nine months ended September 30, 2011 amounted to an expense of $2.9 million.

Foreign currency exchange gain (loss)

We recorded a loss on foreign currency exchange of $1.1 million for the nine months ended September 30, 2011 compared with a loss of $1.3 million for the nine months ended September 30, 2010.

Interest expense, net of capitalized interest

Interest expense, net of capitalized interest was $1.6 million for the nine months ended September 30, 2011, as compared to $4.4 million for the nine months ended September 30, 2010. The increase is mainly due to additional interest payments relating to the New Convertible Senior Notes issued in February 2010. Interest expense for the New Convertible Senior Notes was $1.7 million for the nine months ended September 30, 2011 as compared to $3.0 million for the nine months ended September 30, 2010. Interest expense for the months ended September 30, 2010 included interest expense for both the New Convertible Senior Notes and the 5% Convertible Senior notes. Also included in interest expense are expenses related to the amortization of issue premium and debt issuance costs associated to the New Convertible Senior Notes of $410,000 recorded for the nine months ended September 30, 2011 compared to $1.4 million for the nine months ended September 30, 2010. These expenses were offset by a $508,000 positive accretion impact related to the fair value of the New Convertible Senior Notes.

Income tax (benefit) provision

An income tax provision of $2.2 million was recorded in the nine months ended September 30, 2011, compared to a tax provision of $5.7 million recognized for the nine months ended September 30, 2010. This decrease is due to higher tax provision in 2010 as a result of the $15 million upfront payment received by TEF from Hess under the Investment .

Discontinued operations

We recorded in discontinued operations for the nine months ended September 30, 2011 and 2010 a loss of $3,203,000 and a loss of $1,113,000 respectively. This increase is mainly due to the settlement payment for an amount of $3.8 million on June 22, 2011, related to a settlement agreement with Mr. Hunnisett and Mr. Barker in which they agreed to release both Toreador and Tiway Turkey Limited from all current and future claims related to the Overriding Royalty, including the Netherby Payment Amount. The $3.8 million settlement amount was partially offset by a provision release booked in prior periods for this matter in an amount of $900,000. Sales and other operating revenue from discontinued operations for the nine months ended September 30, 2011 amounted to $38,000.

Production, Production Prices and Costs

The following table summarizes our oil production, net of royalties, for the periods indicated for France. It also summarizes calculations of our total average unit sales prices and unit costs

       

For the three months endedSeptember 30,

2011         2010 Production Oil (Bbls) 78,170 80,693 Daily average (Bbls/Day) 869 897 Unit prices Average oil price ($/Bbl) $ 107.11 $ 77.67 Unit costs ($/BOE) Lease operating $ 30.97 $ 36.76 Exploration and acquisition* 1.23 2.49 Depreciation, depletion and amortization 20.52 14.00 Dry hole costs - - General and administrative 77.65 21.97 Total $ 130.36 $ 75.21          

For the Nine Months EndedSeptember 30,

2011         2010 Production Oil (Bbls) 234,369 241,390 Daily average (Bbls/Day) 868 884 Unit prices Average oil price ($/Bbl) $ 106.86 $ 74.81 Unit costs ($/BOE) Lease operating $ 36.29 $ 30.42 Exploration and acquisition* 3.71 5.28 Depreciation, depletion and amortization 20.27 11.63 Dry hole costs - - General and administrative 63.41 39.83 Total $ 123.68 $ 87.17  

* Exploration and acquisition expense are net of personal, general and administrative cost of Toreador Energy France as operator and invoiced to Hess under the Hess Investment Agreement.

OTHER UPDATES

CONFERENCE CALL

The Company has scheduled a conference call on Wednesday, November 9, 2011 at 11:00 a.m. Eastern, to discuss financial results and current operations. Mr. Craig M. McKenzie, President and Chief Executive Officer of the Company, will lead the conference call.

Approximately 10 minutes before the conference call, participants who wish to ask questions during the call should dial 1-800-798-2864 from within the U.S. or 001-617-614-6206 from outside the U.S. and provide the conference ID# 36595338 to access the call.

Those who wish only to listen to the live audio webcast may access the webcast via Toreador’s internet home page at www.toreador.net by selecting the “Investor Relations” link on the home page and then selecting the “Conference Call” link, or click on this link to access the call http://phx.corporate-ir.net/phoenix.zhtml?c=68298&p=irol-irhome

Those unable to participate in the live call may hear the rebroadcast for up to twelve months after the conference call at www.toreador.net by selecting the “Investor Relations” link on the home page and then selecting the “Conference Call” link. Phone replays of the call also will be available for seven days after the call by dialing 1-888-286-8010 within the U.S. or 001-617- 801-6888 from outside the U.S., Passcode 65194123.

ABOUT TOREADOR

Toreador Resources Corporation is an independent international energy company engaged in the acquisition, development, exploration and production of crude oil. The company holds interests in developed and undeveloped oil properties in France. More information about Toreador may be found at the company's web site, http://www.toreador.net.

Safe Harbor Statement

Except for the historical information contained herein, the matters set forth in this news release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Toreador intends that all such statements be subject to the “safe-harbor” provisions of those Acts. Many important risks, factors and conditions may cause Toreador’s actual results to differ materially from those discussed in any such forward-looking statement. These risks include, but are not limited to, estimates of reserves, estimates of production, future commodity prices, exchange rates, interest rates, geological and political risks, drilling risks, product demand, transportation restrictions, actual recoveries of insurance proceeds, the ability of Toreador to obtain additional capital, and other risks and uncertainties described in the company’s filings with the Securities and Exchange Commission. The historical results achieved by Toreador are not necessarily indicative of its future prospects. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This communication shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Cautionary Note to Investors – The Securities and Exchange Commission (“SEC”) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this release, such a probable reserves and possible reserves, that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. Investors are urged to also consider closely the disclosure in our most recent Form 10-K, available from use by calling (214) 559-3933. You can also obtain this form from the SEC at www.sec.gov.

TOREADOR RESOURCES CORPORATION

APPENDIX 1: CONSOLIDATED BALANCE SHEETS

                    September 30, December 31, 2011 2010 (Unaudited) (In thousands except share and per share data) ASSETS Current assets: Cash and cash equivalents $ 6,856 $ 21,616 Restricted cash 750 - Accounts receivable 3,152 3,988 Other 4,057   3,398   Total current assets 14,815 29,002   Oil properties Oil properties, gross 111,264 108,979 Accumulated depletion, depreciation and amortization (48,227 ) (43,201 ) Oil properties, net 63,037 65,778   Investments 200 200 Goodwill 3,724 3,685 Other assets 1,374   1,634     Total assets $ 83,150   $ 100,299     LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $ 9,579 $ 11,890 Deferred lease payable — current portion 118 113 Derivatives 518 1,330 Income taxes payable 813   6,341   Total current liabilities 11,028 19,674   Long-term accrued liabilities 223 348 Deferred lease payable, net of current portion 241 329 Asset retirement obligations 7,355 6,866 Deferred income tax 14,004 14,618 Long-term debt 33,702   34,394   Total liabilities 66,553 76,229 Stockholders' equity:

Common stock, $0.15625 par value, 50,000,000 shares authorized;26,046,644 and 25,849,705 shares issued at September 30, 2011 andDecember 31, 2010, respectively

4,070 4,039 Additional paid-in capital 203,120 200,230 Accumulated deficit (197,395 ) (186,068 ) Accumulated other comprehensive income 9,336 8,403 Treasury stock at cost, 721,027 shares for 2010 and 2011 (2,534 ) (2,534 ) Total stockholders' equity 16,597 24,070   Total liabilities and stockholders' equity $ 83,150   $ 100,299     The accompanying notes are an integral part of these financial statements.  

TOREADOR RESOURCES CORPORATIONAPPENDIX 2: CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOMECONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                    Three Months Ended September 30, 2011 2010   (Unaudited) (In thousands, except per share data) Revenues and other income: Sales and other operating revenue $ 8,363 $ 6,003 Other income 60   560   Total revenues and other income 8,423 6,563 Operating costs and expenses: Lease operating expense 2,418 2,966 Exploration expense 96 201 Depreciation, depletion and amortization 1,602 1,129 Accretion on discounted assets and liabilities (Notes 7 and 8) 139 (246 ) General and administrative 6,063 1,773 Gain on oil derivative contracts (Note 14) (515 ) 105   Total operating costs and expenses 9,803 5,928 Operating income (loss) (1,380 ) 635 Other expense Foreign currency exchange loss (171 ) (1,178 ) Interest expense, net of interest capitalized (Note 7) (435 ) (2,727 ) Total other expense (606 ) (3,905 ) Income before taxes from continuing operations (1,986 ) (3,270 ) Income tax provision (benefit) (Note 10) 711   (666 ) Loss from continuing operations, net of income taxes (2,697 ) (2,604 ) Loss from discontinued operations, net of income taxes (Note 13) (121 ) (290 ) Net loss available to common shares $ (2,818 ) $ (2,894 )   Basic loss available to common shares per share: From continuing operations, net of income taxes $ (0.10 ) $ (0.11 ) From discontinued operations, net of income taxes -   (0.01 ) Total basic loss available to common shares per share: $ (0.10 ) $ (0.12 )   Diluted loss available to common shares per share: From continuing operations, net of income taxes $ (0.10 ) $ (0.11 ) From discontinued operations, net of income taxes -   (0.01 ) Total diluted loss available to common shares per share: $ (0.10 ) $ (0.12 )   Weighted average shares outstanding: Basic 26,047   24,660   Diluted 26,047   24,660     The accompanying notes are an integral part of these financial statements.  

TOREADOR RESOURCES CORPORATIONAPPENDIX 3: CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME YTD

                        Nine Months Ended September 30, 2011 2010   (Unaudited) (In thousands, except per share data) Revenues and other income: Sales and other operating revenue $ 25,051 $ 17,460 Other income 2,919   15,560   Total revenues and other income 27,970 33,020 Operating costs and expenses: Lease operating expense 8,505 7,344 Exploration expense 870 1,276 Depreciation, depletion and amortization 4,751 2,807 Accretion on discounted assets and liabilities 175 (159 ) General and administrative 14,862 9,615 Loss (gain) on oil derivative contracts 2,049   (709 ) Total operating costs and expenses 31,212 20,174 Operating income ( loss) (3,242 ) 12,846 Other expense: Foreign currency exchange loss (1,136 ) (1,254 ) Loss on the early extinguishment of debt - (4,256 ) Interest expense, net of interest capitalized (1,565 ) (4,448 ) Total other expense (2,701 ) (9,958 ) Income (Loss) before taxes from continuing operations (5,943 ) 2,888 Income tax provision 2,181   5,683   Loss from continuing operations, net of income taxes (8,124 ) (2,795 ) Loss from discontinued operations, net of income taxes (3,203 ) (1,113 ) Net loss available to common shares $ (11,327 ) $ (3,908 )   Basic loss available to common shares per share: From continuing operations, net of income taxes $ (0.31 ) $ (0.12 ) From discontinued operations, net of income taxes (0.12 ) (0.05 ) Total basic loss available to common shares per share: $ (0.43 ) $ (0.17 )   Diluted loss available to common shares per share: From continuing operations, net of income taxes $ (0.31 ) $ (0.12 ) From continuing operations, net of income taxes (0.12 ) (0.05 ) Total diluted loss available to common shares per share: $ (0.43 ) $ (0.17 )   Weighted average shares outstanding: Basic 25,989   24,393   Diluted 25,989   24,393     The accompanying notes are an integral part of these financial statements.