"Non" to drilling for shale rock oil around Paris

[marmar]

(Bloomberg) Toreador Resources Corp. (TRGL) Chief Executive Officer Craig McKenzie’s optimism about oil from the shale rock around Paris -- some even under the Eiffel Tower -- boosted the company’s shares to a record in January.

Six months on, France is set to become the first country in the world to outlaw the drilling technique that’s vital to Toreador’s success. The company has tumbled as much as 79 percent from its high to $3.77 in Nasdaq Stock Market trading, wiping out $374 million in market value.

Toreador sold its assets in Turkey, Hungary and Romania, moved its headquarters to Paris from Dallas in 2009, accumulated the most acreage of any explorer around the French capital and readied with partner Hess Corp. (HES) to start drilling. With a proposed French law banning oil-exploration technology called fracking, Toreador won’t be able to complete its projects.

“It doesn’t look good for Toreador,” said Joel Musante, an analyst at C.K. Cooper & Company. “There is no alternative to fracking to get oil out of shale. At this point it looks like the only thing they could do is participate in a study and that could go on for years.” ..............(more)

The complete piece is at: http://www.bloomberg.com/news/2011-06-15/paris-shale-oil-ban-makes-toreador-casualty-of-popular-outcry.html

[Champion Jack]

1. Good