Range Texas Production, LLC, a wholly-owned subsidiary of Range Resources Corporation, and ZaZa have negotiated an amendment to their participation agreement relating to the acreage on which the Stingray is located. The amendment provides ZaZa: (i) sixty (60) days from January 16, 2013, to commence re-entry operations on the Stingray for the purpose of drilling a vertical comingled Lower Cretaceous well; and (ii) one hundred eighty (180) days from January 16, 2013, to commence drilling operations on a substitute horizontal well.
The Stingray proof of concept well is yielding the Company important data as it continues to technically prove up the Lower Eaglebine play in Northern Walker County. As per a Fesco fluid analysis, through one open fractured interval above the casing restriction, the Company recovered some gas and 45.83 API Gravity crude oil from the Stingray.
Eagle Ford Update
Eagle Ford – Moulton – Crabb RanchZaZa disclosed today that it successfully installed an artificial lift system on the Crabb Ranch A-1H well in Gonzales County, Texas. The well is currently producing 256 BOE/D (91% oil), has been online for 13 months, and has produced ~92 MBO to date. The Company re-affirms its guidance for gross equivalent EUR in the Moulton prospect area to be 501 MBO and single well IRR of 74%. ZaZa currently has identified 103 net locations on its Moulton acreage. Eagle Ford – Sweet Home As previously announced, the Company’s Boening A-1H well located in DeWitt County, Texas has reached its target depth. The Company announced today that it has completed hydraulic fracturing operations on the Boening well and is drilling out the final plugs before flowback. The Company expects initial production by early to mid-February. ZaZa also disclosed today that it has ‘high-graded’ its Eagle Ford Sweet Home acreage into twelve (12) tier-1 developmental units and expects to further delineate this Sweet Home acreage in 2013.