Toreador
Toreador
One of the worst performing E&P stocks is about to transform itself. Toreador Resources will merge with ZAZA Energy and change its name to ZAZA. ZAZA has 120 employees and a highly competent technical team. Domestic exploration will focus on the Eagel Ford and Eaglebine. ZAZA will drill 250 Eagle Ford wells, all carried by Hess during the next two years. ZAZA gets a 10% carried interest in each well. Drilling will begin on 80,000 acres in the Eaglebine in 1Q12. The Paris Basin (50/50 with Hess) will depend on the French goverment. ZAZA has a good reputation in the field and is worth monitoring.