Brooks continued, “Several of our senior executives, including myself, Ian Fay our CFO and Scott Gaille, our Chief Compliance Officer, among others, intend to make purchases of our common stock in the open market over the coming days. We’ve been in a lock-up period for most of 2012 as we’ve pursued transactions and completed our debt offering. Now that we have a window to conduct transactions, we intend to purchase ZAZA stock pursuant and subject to the restrictions of, and consistent with, applicable laws and our securities trading policy. This, we believe, is testament to our strong belief in our company and its potential.”
Update on Definitive Sales and Purchase Agreement with Vermilion Energy
On November 14, 2012, ZaZa announced that it entered into a definitive share purchase agreement (“Purchase Agreement”) with Vermilion Energy Inc. (“Vermilion”), whereby Vermilion, through its wholly-owned subsidiary Vermilion REP SAS would acquire 100% of the shares of ZaZa Energy France SAS (“ZEF”) for a total purchase price of US$85.8 million, subject to customary adjustments.
The Company announced today that it has received a letter of non-objection from the French Minister of Energy and Minister of Economy and Finance on December 10, 2012 approving the transfer of 100% of the shares of ZEF to Vermilion as per the Share Purchase Agreement. ZaZa remains on track to close the transaction with Vermilion prior to year-end 2012 and intends to use a portion of the proceeds from the disposition to pay down part of its remaining senior secured notes and fund its drilling program across its Eaglebine and Eagle Ford plays.Mr. Brooks concluded, “With the sale of our French conventional asset, we will have paid down our Senior Secured Notes to approximately $33 million. We believe ZaZa is well positioned to achieve significant rates of return on our investments and we look forward to providing our shareholders with updates on our progress.”