ZaZa Energy Corporation (“ZaZa” or the “Company”) (NASDAQ:ZAZA) today announced that it has closed the previously announced third transaction with its joint venture partner to further develop its Eaglebine/Lower Cretaceous assets in the Eagle Ford East (the “Phase III Amendment”). Pursuant to the terms of the Phase III Amendment, ZaZa received a total of approximately $15 million in cash and carry consideration and an additional two well drilling commitment. ZaZa’s JV partner has now elected into all of the Company’s acreage in the joint venture. TRANSACTION HIGHLIGHTS
- Phase III Final Acreage Election. ZaZa assigned at closing to its joint venture partner a 75% working interest in all of the Company’s remaining Phase III acreage. As consideration for this final Phase III acreage election, ZaZa received approximately $4.7 million of upfront cash and a carry of the Company’s share of future joint venture costs of up to approximately $9.2 million. ZaZa received an additional $1.1 million of cash from its partner related to the completion of the Range-ZaZa JV Agreement.
- Drilling Commitment. ZaZa’s JV partner also has committed to drill an additional two wells, with the first well commencing no later than July 1, 2014.