ZaZa Energy Corporation (“the Company” or “ZaZa”) (NASDAQ: ZAZA) announced today that it has commenced drilling its first well in the Woodbine region of Texas (also known as the Eaglebine), an emerging resource play in the Eastern trend of the Eagle Ford.
The well is located on acreage acquired through a transaction with Range Texas Production, LLC (“Range”), a subsidiary of Range Resources Corporation (NYSE: RRC), announced on March 29, 2012. Under the terms of the transaction with Range, ZaZa obtained a 75% working interest in the acquired acreage, became the designated operator, and has fulfilled its obligation to commence operations on the first well within the agreed upon timeframe.
Todd A. Brooks, President and Chief Executive Officer, said, “We are pleased to begin drilling in this exciting resource play that marks the Eastern trend of the Eagle Ford. The organic rich geologic horizon is thicker and has a higher sand concentration than that seen in the Eagle Ford core, offering higher resource potential per acre at lower drilling costs. Judging by the recent success of other operators in the area, we are very optimistic about our prospects in this resource play, and look forward to advancing our drilling program while simultaneously running our strategic review process to identify a joint venture partner.”
ZaZa’s portfolio of assets now includes approximately 72,000 net acres in the Eagle Ford core, 90,000 nearly contiguous net acres in the Woodbine/Eaglebine play in Grimes, Madison, and Walker Counties, and approximately 24,260 wholly-owned acres of conventional producing assets in the Paris Basin.About ZaZa Energy Corporation Headquartered in Houston, Texas, with offices in Corpus Christi, Texas and Paris, France, ZaZa Energy Corporation is a publicly-traded exploration and production company with primary assets in the Eagle Ford, Eaglebine and Paris Basin resource plays. More information about the Company may be found at www.zazaenergy.com. 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. ZaZa intends that all such statements be subject to the “safe-harbor” provisions of those Acts. Many important risks, factors and conditions may cause ZaZa’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 ZaZa 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 ZaZa 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.