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ZaZa Energy Corporation Provides Operational Update

  ZaZa Energy Corporation Provides Operational Update

Business Wire

HOUSTON -- January 28, 2013

ZaZa Energy Corporation (NASDAQ: ZAZA) today provided operational updates
related to its properties in the Eaglebine and Eagle Ford regions in Texas.

Eaglebine and Lower Cretaceous Update

ZaZa currently owns and operates ~88,000 net acres in the Eaglebine, which is
located in the highly organic and thickest area of the basin. Over the course
of 2013, the Company intends to evaluate various development scenarios in the
Lower Eaglebine, Upper Eaglebine, and the Lower Cretaceous sections of its
Eaglebine acreage. Based on the results of its evaluation and production
results from its wells, the Company will compare the economics of various
horizontal and vertical commingled development options in an effort to refine
its development strategy.

ZaZa announced today that its second exploration well in Northern Walker
County, Texas, the Commodore A-1, is drilling ahead at 12,237’ and has
recovered strong mud log shows (C1-C4) indicative of liquid hydrocarbons in
the Lower Eaglebine and now into the Lower Cretaceous. The Company is
evaluating the possibility of making a dual completion in the Lower Eaglebine
and commingling the Lower Cretaceous zones and expects production results by
mid to late-February.

As previously announced, ZaZa drilled its initial Eaglebine well, the Stingray
A-1H (“Stingray”), in Walker County, Texas. The well log results, using the
Schlumberger ELAN analysis tool, showed an estimated 21 BCF and 29 MMBO per
section in place or ~980,000 BOE/EUR recoverable, applying a recovery factor
of 18-20%. After completion of hydraulic fracturing operations, the casing,
under normal operating conditions, suffered a casing collar failure, which
ZaZa determined to be the cause of a down-hole restriction in the lateral
portion of the well. Metallurgical testing performed on the collar indicated
that the collar failed because of embrittlement. Notwithstanding multiple
attempts, the Company has been unable to remediate this restriction and has
lost the lateral. Based on encouraging mud log shows from the Commodore A-1
and the successful production results of other operators in the area, ZaZa has
prepared the Stingray for re-entry and plans to drill through the Lower
Cretaceous, below the Lower Eaglebine, and attempt to complete it as a
vertical commingled well.

Range Texas Production, LLC, a wholly-owned subsidiary of Range Resources
Corporation, and ZaZa have negotiated an amendment to their participation
agreement relating to the acreage on which the Stingray is located. The
amendment provides ZaZa: (i) sixty (60) days from January 16, 2013, to
commence re-entry operations on the Stingray for the purpose of drilling a
vertical comingled Lower Cretaceous well; and (ii) one hundred eighty (180)
days from January 16, 2013, to commence drilling operations on a substitute
horizontal well.

The Stingray proof of concept well is yielding the Company important data as
it continues to technically prove up the Lower Eaglebine play in Northern
Walker County. As per a Fesco fluid analysis, through one open fractured
interval above the casing restriction, the Company recovered some gas and
45.83 API Gravity crude oil from the Stingray.

Eagle Ford Update

Eagle Ford – Moulton – Crabb Ranch

ZaZa disclosed today that it successfully installed an artificial lift system
on the Crabb Ranch A-1H well in Gonzales County, Texas. The well is currently
producing 256 BOE/D (91% oil), has been online for 13 months, and has produced
~92 MBO to date. The Company re-affirms its guidance for gross equivalent EUR
in the Moulton prospect area to be 501 MBO and single well IRR of 74%. ZaZa
currently has identified 103 net locations on its Moulton acreage.

Eagle Ford – Sweet Home

As previously announced, the Company’s Boening A-1H well located in DeWitt
County, Texas has reached its target depth. The Company announced today that
it has completed hydraulic fracturing operations on the Boening well and is
drilling out the final plugs before flowback. The Company expects initial
production by early to mid-February.

ZaZa also disclosed today that it has ‘high-graded’ its Eagle Ford Sweet Home
acreage into twelve (12) tier-1 developmental units and expects to further
delineate this Sweet Home acreage in 2013.

Commenting on today’s announcement, Todd A. Brooks, CEO of ZaZa Energy
Corporation stated, “ZaZa was built to be a proof of concept team for a large
scale unconventional resource joint venture. The company is continuing to
prove up acreage through the drill bit with plans to further develop, de-risk,
and focus on high-grading acreage as it builds its production base.”

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, 212-786-6037
Partner
jmorakis@jmrww.com
 
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