ZaZa Energy Announces Comprehensive Eaglebine and Eagle Ford Drilling
HOUSTON -- November 06, 2012
ZaZa Energy Corporation (“the Company” or “ZaZa”) (NASDAQ: ZAZA) today
announced comprehensive drilling updates in its core Eaglebine and Eagle Ford
“Over the past several months we’ve significantly strengthened our capital
structure, and, as a result, are in a much stronger and more stable position
to further develop and prove up our Eaglebine assets while supplementing our
existing activities in our Eagle Ford acreage. With the improvements in our
balance sheet and new positive developments in our operations, we are
sufficiently capitalized to execute on our strategy and unlock value from our
Eaglebine assets,” stated Todd A. Brooks, Chief Executive Officer of ZaZa.
Eaglebine/Woodbine Stingray Well – Drilling Completed; Hydraulic Fracturing
to Begin Immediately
ZaZa has completed drilling and running production casing on its Eaglebine
Stingray A-1H well in Walker County, Texas (11,780 feet - True Vertical Depth
(TVD) / 17,060 feet – Measured Depth). The Company has drilled a pilot hole
through the objective section (12,242 feet – True Vertical Depth), taken
sidewall cores, and run a full suite of logs including a Schlumberger
Quad-Combo, Elemental Capture Spectroscopy Sonde, Dual-Oil-Based Micro Imager,
Sonic-Scanner and a post-processed ELAN Shale Oil Evaluation (ELAN) for the
empirical measurement of hydrocarbons in place. In addition, ZaZa has
completed drilling an approximately 4,700-foot, in-zone lateral in the
objective section of the well and commenced completion operations.
ZaZa expects to begin hydraulic fracturing operations on November 12, 2012,
with initial production planned for late November 2012.
Results from ZaZa’s extensive technical evaluation of the Stingray A-1H well
are very encouraging with the ELAN analysis estimating 21 BCF and 29 MMBO per
section in place. These current estimates are preliminary and are subject to
revision based on actual production and additional data.
Additionally, based on initial information gathered from the Stingray A-1H
well, the Company has entered into a multi-well rig contract with Nabors
Drilling USA, is preparing to install production facilities, and has entered
into a multi-year lease for a field office and yard near its Eaglebine acreage
in Walker County, as it further appraises and delineates its Eaglebine acreage
“Today, the Eaglebine play is one of the most exciting, emerging, liquids-rich
resource plays in the country, and the data we have in-house supports this
sentiment. As the first mover in the Eaglebine play, ZaZa holds what it
believes to be some of the Eaglebine’s most promising and untapped acreage. We
have amassed a dominant, nearly contiguous land position of ~90,000 net acres
located in the thickest part of the play. Although early drilling in this area
has initially proved challenging for some operators, ZaZa has overcome these
obstacles through new drilling processes and technological innovation
developed by its experienced operations team, a team with a collective
knowledge-base derived from successfully drilling over 7,500 horizontal wells.
As a result of these new processes and innovations, ZaZa now has the ability
to control and further develop these assets and unlock both short and
long-term value. All of our data indicates high productive potential and we
are now focused on making the Eaglebine our core, foundation asset,” Mr.
The Company also disclosed today that upon establishing production in the
Eaglebine, it expects to further its negotiations and move towards the
execution of a substantive joint venture agreement for its Eaglebine acreage.
Additionally, based on production results and initial appraisal data in the
Company’s Sweet Home Black Hawk Field Extension play, ZaZa will continue its
asset prioritization process beyond the Paris Basin and will allocate
resources consistent with a highest and best value creation philosophy.
Eagle Ford Boening Well – Delineating Sweet Home / Black Hawk Field Extension
Having completed the drilling of the Stingray A-1H well, ZaZa has moved the
same rig to DeWitt County and has begun drilling a 5,000 to 6,700-foot,
in-zone lateral section in its Boening A-1H well, which has encountered 200
feet of Eagle Ford shale in the wet gas window of the Eagle Ford play, where
adjacent drilling results to-date have been excellent. The Boening A-1H pilot
hole has already been drilled, logged, and whole-cored. Initial Production is
anticipated mid December. With the completion and production results from the
Boening well, ZaZa can further appraise and prioritize its ~34,800 net acres
in the Sweet Home Eagle Ford Prospect.
In November 2011, ZaZa drilled the vertical pilot hole for the Boening A-1H
well to 12,210 feet TVD to evaluate the Eagle Ford open hole section,
recovering 471 feet of whole-core, and performing similar Schlumberger
evaluations as outlined above. The ELAN evaluation resulted in an estimation
of 40 BCF and 5.1 MMBO per section in place. Again, these current estimates
are preliminary and are subject to revision based on actual production and
Marquis Eagle Ford Land Position – Further Moulton Development
Upon completion of drilling the Boening A-1H well, ZaZa plans to move the rig
to its Eagle Ford Moulton Project Area (~11,600 net acres), located in the
proven area of the volatile oil window in Gonzales & Fayette Counties, in
order to drill its 8^th well in the area, where EURs are 501 MBOE (~94%
Liquids), before moving the rig back to its Eaglebine Prospect Area in Walker
County to continue drilling Eaglebine appraisal wells.
About ZaZa Energy Corporation
Headquartered in Houston, Texas, with offices in Corpus Christi, Texas and
Paris, France, ZaZa Energy Corporation is a publicly traded exploration and
production company with primary assets in the Eagle Ford and Eaglebine
resource plays in Texas. More information about the Company may be found at
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 2011 Form
10-K 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.
Jay Morakis, Partner
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