ZaZa Energy Corporation (“the Company” or “ZaZa”) (NASDAQ: ZAZA) today announced comprehensive drilling updates in its core Eaglebine and Eagle Ford properties.
“Over the past several months we’ve significantly strengthened our capital structure, and, as a result, are in a much stronger and more stable position to further develop and prove up our Eaglebine assets while supplementing our existing activities in our Eagle Ford acreage. With the improvements in our balance sheet and new positive developments in our operations, we are sufficiently capitalized to execute on our strategy and unlock value from our Eaglebine assets,” stated Todd A. Brooks, Chief Executive Officer of ZaZa.
Eaglebine/Woodbine Stingray Well
Drilling Completed; Hydraulic Fracturing to Begin Immediately
ZaZa has completed drilling and running production casing on its Eaglebine Stingray A-1H well in Walker County, Texas (11,780 feet - True Vertical Depth (TVD) / 17,060 feet – Measured Depth). The Company has drilled a pilot hole through the objective section (12,242 feet – True Vertical Depth), taken sidewall cores, and run a full suite of logs including a Schlumberger Quad-Combo, Elemental Capture Spectroscopy Sonde, Dual-Oil-Based Micro Imager, Sonic-Scanner and a post-processed ELAN Shale Oil Evaluation (ELAN) for the empirical measurement of hydrocarbons in place. In addition, ZaZa has completed drilling an approximately 4,700-foot, in-zone lateral in the objective section of the well and commenced completion operations.
ZaZa expects to begin hydraulic fracturing operations on November 12, 2012, with initial production planned for late November 2012.
Results from ZaZa’s extensive technical evaluation of the Stingray A-1H well are very encouraging with the ELAN analysis estimating 21 BCF and 29 MMBO per section in place. These current estimates are preliminary and are subject to revision based on actual production and additional data.
Additionally, based on initial information gathered from the Stingray A-1H well, the Company has entered into a multi-well rig contract with Nabors Drilling USA, is preparing to install production facilities, and has entered into a multi-year lease for a field office and yard near its Eaglebine acreage in Walker County, as it further appraises and delineates its Eaglebine acreage position.