First graph, end of the first sentence of the release should read: ... compared to its total proved reserves of 0.9 MMBbls and 4,130 MMCF, as of December 31, 2011. (sted ... compared to its total proved reserves of 1.6 MMBbls and 4,130 MMCF, as of December 31, 2011.)
The corrected release reads:
ZAZA ENERGY UPDATES PROVED RESERVES FOR EAGLE FORD TREND ASSETS
Outlines Indicative 2013 Budget for Eagle Ford and Eaglebine Development
ZaZa Energy Corporation (“the Company” or “ZaZa”) (NASDAQ: ZAZA) today announced that its total proved oil and gas reserves in the Eagle Ford as of September 1, 2012 included 1.9 million barrels of oil (“MMBbls”) and 1,952 million cubic feet of natural gas (“MMCF”), compared to its total proved reserves of 0.9 MMBbls and 4,130 MMCF, as of December 31, 2011. ZaZa’s 2.2 million barrels of oil equivalent in the Eagle Ford are 85 percent oil-weighted and 20 percent proved developed. The Company’s average production rates for the month of August are 1,100 barrels of oil equivalent per day with 250 barrels of oil equivalent per day in the Eagle Ford. The Company's estimated total reserves were prepared by Rex D. Morris, ZaZa’s independent consulting reservoir engineer. The Company has also engaged Ryder Scott Company, L.P. to prepare estimates of its remaining proved reserves and future production rates.
The estimates were prepared in accordance with guidelines established by the Securities and Exchange Commission (“SEC”) for proved reserves.
2013 Capital Budget
ZaZa today also announced its indicative capital budget for the Eagle Ford and Eaglebine resource plays through 2013. In addition to the Stingray well that was spud in the Eaglebine in August 2012, ZaZa expects to drill three operated wells in the Eaglebine, one operated well in the Eaglebine under the terms of a joint venture with Arch Oil and Gas, LLC, one operated well in the Sweet Home Eagle Ford prospect and three non-operated wells in the Moulton Eagle Ford prospect. The Company plans to divest its 23,000 net acre Eagle Ford Hackberry Prospect. This acreage is majority located in Northeastern Lavaca County, Texas. ZaZa also anticipates capex for land management activities as well as artificial lift work to optimize current production from one producing well. The total indicative capital budget through 2013 is expected to be approximately $50 million, subject to board approval and availability of funds.