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ZaZa Energy Corporation (“the Company” or “ZaZa”) (NASDAQ: ZAZA) announced today that it has completed its transaction with Hess Corporation (“Hess”) (collectively, the “Parties”), announced on June 11, 2012. The transaction (i) effectively terminates the Parties’ 2010 agreements in Texas and, following government approval, those in France, (ii) divides the Parties’ assets under those agreements; (iii) provides a further cash payment to ZaZa today of approximately $69 million; and (iv) allows ZaZa to pay down its $100 million senior secured notes due 2017 by $33 million.
As previously announced, ZaZa has engaged Jefferies & Company, Inc. (“Jeffries”) as its financial advisor to assist in securing a joint venture partner or partners for ZaZa’s Eagle Ford and Woodbine/Eaglebine assets, as well as to evaluate all strategic opportunities available to the Company. The completion of the Hess transaction and resulting dissolution of that joint venture will allow ZaZa and Jeffries to freely explore a range of strategic alternatives available to the Company in order to create value for all stockholders. More information on this process will be provided in the coming months.
Mr. Craig McKenzie, Chief Executive Officer, said, “We are very pleased to announce the closing of the transaction with Hess. ZaZa has come a long way in a very short period of time and now holds core positions in some of the most exciting and prolific oil and gas plays in North America. I would like to thank our Board and full management team for their dedication and effort during this critical time for the Company.”
Mr. Todd Brooks, President, said, “This is a very exciting time for the Company. With today’s announcement, we are positioned to launch a full-scale review of potential strategic partners to best exploit our assets in the Eagle Ford, one of the most prolific resource plays in the U.S., and the Woodbine/Eaglebine, an emerging resource play in the Eastern trend of the Eagle Ford. With years of experience working in the Eagle Ford and throughout Southern Texas, we are well prepared to maximize production across these two resource plays. We look forward to executing on our strategic plan and creating value for all stockholders.”