ZaZa Energy Corporation (“the Company” or “ZaZa”) (NASDAQ: ZAZA) today announced financial and operational results for its second quarter and six months ended June 30, 2013.
2013 Second Quarter Results
For the quarter ended June 30, 2013, the Company reported total revenues and other income from continuing operations of $2.4 million as compared to $3.1 million reported for the comparable 2012 period. This decrease is primarily due to the loss of the Cotulla revenues of $2.5 million as a result of the division of assets from ZaZa’s former joint venture, partially offset by additional revenue realized from the Boening A1H well in Sweet Home, the increase in Moulton production from the Crabb Ranch A-1H well and the non-operated Ring Unit wells.
Operating costs and expenses for the second quarter ended June 30, 2013 were $107.1 million as compared to $15.4 million in the comparable 2012 period. This increase was primarily related to the impairment of oil and gas properties of $93.1 million in the second quarter of 2013. Certain leasehold costs and producing oil and gas properties were written down to their fair values, resulting in pretax non-cash impairment charges in the period ended June 30, 2013. Excluding the impact of the impairment charges, total operating costs and expenses decreased by approximately $1.4 million.The Company reported an operating loss of $104.8 million for the three months ended June 30, 2013 as compared to an operating loss of $12.3 million for the three months ended June 30, 2012. The second quarter of 2013 included an income tax benefit of $36.2 million as compared to an income tax expense of $1.4 million for the comparable 2012 period. Net loss from continuing operations was $58.7 million, as compared to a net loss from continuing operations of $13.6 million for the three months ended June 30, 2013 and June 30, 2012, respectively. Additionally, the Company reported income from discontinued operations, net of income taxes, of $0.6 million for the second quarter of 2013 as compared to a loss of $35.8 million for the comparable second quarter in 2012. ZaZa reported a net loss of $58.1 million as compared to a net loss of $49.5 million, or a loss per basic and diluted share of $0.57 and $0.49 for the three months ended June 30, 2013 and June 30, 2012, respectively.