ZaZa Energy Corporation Completes the Sale of Its French Assets to Vermilion Energy

  ZaZa Energy Corporation Completes the Sale of Its French Assets to Vermilion
  Energy

Business Wire

HOUSTON -- December 27, 2012

ZaZa Energy Corporation (NASDAQ: ZAZA) today disclosed that it completed the
sale of its French assets, comprising 100% of the shares of ZaZa Energy France
SAS (“ZEF”), to Vermilion REP SAS, a wholly-owned subsidiary of Vermilion
Energy Inc., for a gross purchase price of $85.8 million.

Taking into consideration customary closing adjustments and contractually
obligated asset integrity and G&A contributions, the net purchase price paid
to ZaZa was ~US$76 million. Resulting acquisition metrics reflect a cash
valuation of ~US$90,000 per Bbl/d and ~US$13.64 per boe of proved reserves.

ZaZa applied half of the net proceeds from the disposition to pay down a
substantial part of its remaining senior secured notes. As part of the Paris
Basin Purchase and Sale Agreement signed with Hess in July 2012, $15.0 million
of the proceeds will be held in escrow until title to all Paris Basin
exploration permits have been successfully transferred to Hess. The title
transfer process is underway and is expected to be completed in 2013. The
remaining proceeds will be used to fund ZaZa’s development program.

Commenting on today’s announcement, Todd A. Brooks, CEO of ZaZa Energy
Corporation stated, “With a portion of the cash received from this
disposition, we have now paid down over two-thirds of our senior secured debt
in less than a year. In addition to dramatically reducing the company’s
leverage, ZaZa is now better capitalized to continue developing its core
Eaglebine and Eagle Ford resource plays. This divestiture is consistent with
our stated strategy and provides ZaZa with additional working capital and
greater financial flexibility moving forward. We look forward to a successful
2013, the first quarter of which will most certainly be dynamic, as we expect
to see the initial results from our aggressive development plan.”

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
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 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.

Contact:

JMR Worldwide
Jay Morakis, Partner, +1 212-786-6037
jmorakis@jmrww.com