ZaZa Energy Corporation (“ZaZa” or the “Company”) (NASDAQ:ZAZA) today announced that it has completed the transaction for the sale of its remaining properties located in Fayette, Gonzalez and Lavaca Counties, Texas, which the Company refers to as its Moulton properties (“Moulton”) in the Eagle Ford, to a subsidiary of Sanchez Energy Corporation. After customary closing adjustments and expenses, the net proceeds to ZaZa are ~$29.3 million, for ~10,300 net acres and ZaZa’s interest in associated producing wells.
ZaZa intends to use a portion of the net proceeds from the transaction to further reduce its outstanding debt obligations as required under its debt agreements. Pro Forma financial information can be found in the Company’s Form 8-K that was filed with the U.S. Securities and Exchange Commission today.
Commenting on today’s announcement, Todd A. Brooks, President and Chief Executive Officer of ZaZa stated, “This divestiture provides us with additional working capital and greater financial flexibility as we move through 2013 with a clear objective: Monetize and JV our Eagle Ford West assets in order to improve our balance sheet and build our production base alongside our JV partner in the Eaglebine/Eagle Ford East Play. Progress in this joint venture is continuing as planned and we anticipate timely drilling of the first three wells as part of the Agreement.”
About ZaZa Energy CorporationHeadquartered in Houston, Texas, ZaZa Energy Corporation is a publicly-traded exploration and production company with primary assets in the Eagle Ford and Eaglebine/Eagle Ford East resource plays in Texas. More information about the Company may be found at www.zazaenergy.com. Safe Harbor Statement This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "forecasts" and similar references to future periods. These statements include, but are not limited to, statements about ZaZa’s ability to execute on exploration, production and development plans, 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. While forward-looking statements are based on our assumptions and analyses that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties that could cause our actual results, performance and financial condition to differ materially from our expectations. See "Risk Factors" in our 2012 Form 10-K and 2013 First Quarter Form 10-Q filed with the Securities and Exchange Commission for a discussion of risk factors that affect our business. Any forward-looking statement made by us in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development, or otherwise, except as may be required by law.