ZaZa Energy Reports 2012 Year-End Results and Provides Operational Updates

  ZaZa Energy Reports 2012 Year-End Results and Provides Operational Updates

  *Substantial revenue and other income reported from gain on transactions
  *$66.8 million of debt paid down in CY12 with plans to further reduce debt
    in CY13
  *Joint Venture in the Eaglebine in 1Q13 provides company with increased
    financial flexibility and alliance with proven, best-in-class operator

Business Wire

HOUSTON -- April 01, 2013

ZaZa Energy Corporation (“the Company” or “ZaZa”) (NASDAQ: ZAZA) today
announced operational and financial results for the year ended December 31,

Results of operations include the results of the Company’s accounting
predecessor, ZaZa LLC, from January 1, 2012 through February 20, 2012, and all
of the Company’s subsidiaries, since February 21, 2012, excluding ZaZa Energy
France (“ZEF”), which was sold on December 21, 2012 and is presented as
discontinued operations.

Full Year 2012 Results

For the year ended December 31, 2012, ZaZa reported revenues and other income
from continuing operations of $205.2 million, as compared to $17.6 million
reported for the year ended December 31, 2011. Included in 2012 revenues and
other income is $195.6 million related to the gain on termination of the Hess
Agreements. This gain consisted of a step up of oil and gas property to fair
value of $117.0 million, a write-off of $5.4 million in working capital and a
cash payment by Hess to ZaZa in the amount of $84.0 million.

The Company reported oil and gas revenue for the year of $9.6 million, up from
$2.5 million for the year ended December 31, 2011. The increase in oil and gas
revenue is primarily a result of the termination agreements with Hess. An
overall rise in oil prices also contributed to this increase.

Operating costs and expenses for the year ended December 31, 2012 were $130.9
million as compared to $20.0 million in the comparable prior year period. The
increase in operating costs and expenses is primarily attributable to higher
general and administrative expenses, and an increase in both lease and
exploration expenses for the comparable 2011 period.

The Company reported operating income from continuing operations of $74.3
million compared to an operating loss of $2.5 million for the years ended
December 31, 2012 and December 31, 2011, respectively. Income from continuing
operations before income taxes for the year ended December 31, 2012 was $28.9
million as compared to a loss from continuing operations before income taxes
of $2.7 million for the comparable 2011 period. Operating results are up
significantly over the prior year as a result of a series of material
transactions in 2012, most notably the successful consummation of the
Agreement and Plan of Merger and Contribution with Toreador Resources
Corporation, which took place in February 2012, and the termination of the
Hess Joint Venture, which was finalized in July 2012. The Company also
recorded an income tax expense of $82.9 million in 2012 as compared to an
income tax expense of $0.1 million recorded in the prior year period.

ZaZa reported a net loss of $106.2 million for the year ended December 31,
2012 as compared to a net loss of $2.9 million for the year ended December 31,
2011. The 2012 net loss was primarily attributable to income tax expenses of
$82.9 million, $28.0 million in losses on the early extinguishment of debt,
and interest expense of $14.7 million. Additionally, the Company recorded a
net loss from discontinued operations, net of tax of $52.2 million for the
year ended December 31, 2012, and there was no impact of discontinued
operations to results for the comparable 2011 period.

Todd A. Brooks, President and Chief Executive Officer, stated, “By executing
on a series of strategic transactions in the first year of being a public
company we strengthened our balance sheet and high graded our asset base. We
are now well positioned to execute on our business plan and focus on growing
our production reserves and cash flow in 2013 and 2014.”

Liquidity Update

  *In February 2012, in connection with the Combination of ZaZa LLC and
    Toreador, ZaZa issued Senior Secured Notes with a principal amount of $100
    million, maturing in 2017.
  *In October 2012, ZaZa completed the issuance and sale of $40.0 million
    aggregate principal amount of 9% Convertible Senior Notes. The Notes are
    senior unsecured obligations and bear interest at a fixed rate of 9.0% per
    annum, maturing in August 2017, unless earlier converted, redeemed or

ZaZa paid down approximately $66.8 million of its obligation on its Senior
Secured Notes by December 31, 2012, and with recent transactions announced
last week, intends to pay down another $8.0 million upon the closing of these
deals, which is expected to occur in the 2013 second quarter.

As of December 31, 2012, ZaZa had long-term debt, net of discounts, of $96.3
million, cash and cash equivalents of $34.6 million, in addition to restricted
cash of $21.9 million.

2012 Corporate Milestones

  *In February 2012, ZaZa consummated the combination of ZaZa LLC and
    Toreador, whereby ZaZa Energy Corporation became the parent company of
    both entities, now wholly owned subsidiaries. The combination was treated
    as a reverse merger under the purchase method of accounting in accordance
    with GAAP.
  *In March 2012, ZaZa entered into a transaction with Range Texas
    Production, LLC (“Range”), a subsidiary of Range Resources Corporation, to
    expand ZaZa’s position in the Eaglebine to a total holding of
    approximately 143K gross acres (88K net acres). Under the terms of this
    transaction, ZaZa obtained a 75% working interest in the acquired acreage,
    was designated as operator, committed to drill one well and committed to
    and made two cash payments to Range.
  *In June 2012, ZaZa, Hess and Hess Oil France SAS entered into a Heads of
    Agreement (“HOA”), which eliminated Hess’ obligation to carry the cost of
    the wells under prior agreements in the Cotulla Prospect Area, in exchange
    for a cash payment of $15.0 million.
  *In July 2012, ZaZa successfully negotiated the exit from the Hess Joint
    Venture whereby ZaZa relinquished the Cotulla Area and regained
    operational control of approximately 60% of the venture’s former acreage
    in the Eagle Ford (totaling 71,000 net acres). Concurrent with this,
    Toreador also exited its joint venture with Hess in France, which resulted
    in ZaZa converting its 50% working interest in the French exploration
    licenses to a 5% non-cost bearing revenue interest for up to $130 million
    in cash receipts. In addition to the aforementioned land transitions
    related to the dissolution of the joint venture, ZaZa received an
    aggregate of $84 million in cash from Hess.
  *In November 2012, ZaZa and Vermillion REP SAS, a wholly-owned subsidiary
    of Vermillion Energy Inc., entered into a Share Purchase Agreement to sell
    100% of its shares in ZaZa Energy France. In December 2012, ZaZa
    consummated this transaction for a gross purchase price of $85.8 million.
    The Company used approximately half of the net proceeds of $76.0 million
    to pay down part of its remaining senior secured notes. Additionally, as
    part of the Paris Basin Agreement signed with Hess in July 2012, $15.0
    million of the sales proceeds were placed in escrow until all exploration
    permits for the Paris Basin are successfully transferred. With the
    exception of a 5% overriding royalty interest retained under the Paris
    Basin Agreement, ZaZa no longer has any meaningful operations or assets in
    connection with oil and gas operations in France.

2012 Operational Milestones

  *Eagle Ford: Throughout the year, ZaZa drilled or participated in 13 gross
    wells, 1.2 net wells, in the Eagle Ford shale. ZaZa also operated 100% of
    the Boening A-1H as part of the Hess Agreement dissolution, and this well
    began initial flow back in February 2013. ZaZa also installed a pumping
    unit on the Crabb Ranch well in Gonzalez County, thus achieving
    sustainable production rates over 200 Bbls per day. Additionally, in 2012,
    ZaZa obtained non-operated participation with GeoResources (Halcón) on the
    Ring Unit 1 through 5 wells. As of December 31, 2012, ZaZa owned operating
    interests in four (4) Eagle Ford producing wells, and non-operating
    working interests in ten (10) Eagle Ford producing wells located in South
  *Eaglebine: In the Eaglebine prospect area in 2012, ZaZa drilled one (1)
    horizontal well targeting the Lower Eaglebine (Stingray A-1H) and
    commenced drilling on one (1) vertical well targeting the Lower Cretaceous
    (Commodore A-1).

       *ZaZa’s operations on the Stingray A-1H successfully drilled a
         vertical pilot hole through the Lower Eaglebine section, obtaining
         critical open hole logs and core data. ZaZa also plugged back and
         successfully drilled a 4000’+ lateral targeting the Lower Eaglebine
         section, ran production casing and fracked fifteen (15) of sixteen
         (16) stages.
       *ZaZa commenced drilling its Commodore A-1, a vertical well designed
         to test the Lower Cretaceous section. This well reached total depth
         of 12,609’ and the Company began running casing in February 2013.

2013 Corporate Developments

As announced on March 25, 2013, ZaZa entered into three separate and
independent transactions – one related to the Eaglebine prospect area and two
in the Eagle Ford (Moulton).

  *Eaglebine Joint Venture: ZaZa entered into a Joint Exploration and
    Development Agreement (“Agreement”) with a large, Texas-based independent
    crude oil and natural gas company to further develop its Eaglebine assets.
    Under the terms of the Agreement, ZaZa’s joint venture partner will
    receive up to a 75% working interest in up to 55K net acres and operate
    the JV acreage comprising 73K of ZaZa’s 92K net mineral acres. ZaZa will
    retain a 25% working interest in the 73K acres. These assets include
    certain lands located in Walker, Grimes, Madison, Trinity and Montgomery
    Counties, Texas, which are wholly-owned by ZaZa, and also incorporate
    certain properties that are jointly-owned by ZaZa and Range. The
    development program consists of three (3) phases, each covering a three
    (3) well drilling program plus associated cash payments. The Company noted
    that early-stage drilling preparations are underway for the first two (2)
    JV wells and drilling operations on this third well will be commenced
    before December 31, 2013.

  *Sale of Moulton Acreage: In March 2013, ZaZa entered into a Purchase and
    Sale Agreement to sell approximately 10,000 net acres of its properties in
    the Eagle Ford trend located in Fayette, Gonzalez and Lavaca Counties,
    Texas (“the Moulton properties”), which includes seven (7) producing
    wells. In exchange, ZaZa is to receive $43.25 million in cash. This
    transaction is expected to close in the second quarter of 2013 and net
    proceeds, after closing purchase price adjustments and expenses, are
    expected to be approximately $42.0 million. The closing is subject to
    normal closing conditions and the amendment of ZaZa’s securities purchase
    agreement for its senior secured notes. In a separate transaction, the
    Company executed a Purchase and Sale Agreement to sell its remaining
    acreage in its Moulton properties for approximately $9.2 million. This
    transaction is expected to close in April 2013, and is subject to normal
    closing conditions.

Mr. Ian H. Fay, ZaZa’s Chief Financial Officer added, “We have taken
significant steps over the past year to improve our balance sheet by lowering
our interest payments, capital expenditure requirements and related G&A
expenses. Additionally, we expect to receive over $60 million in cash in the
second quarter of 2013, upon the consummation of our Eaglebine Joint Venture
and the sale of our Moulton assets. These transactions should further
strengthen our financial position, provide us with additional working capital
to pursue development of our 100% owned 19,000 net acres in the Eaglebine and
execute proof-of-concept opportunities in other emerging plays in the U.S. We
now have added flexibility in our capital allocation strategy and believe the
company is well funded to execute its plan and generate value for

Results of Operations

The results of operations include the results of our accounting predecessor,
ZaZa LLC, from January 1, 2012 through February 20, 2012 and all of our
subsidiaries, since February 21, 2012, excluding ZaZa Energy France, which was
sold on December 21, 2012 and is presented as discontinued operations. The
table below relates to ZaZa’s continuing corporate activities and oil and gas
exploration and production operations, and excludes discontinued operations.

The following table presents our production and average prices obtained for
our production for the years ended December 31, 2012, and 2011:

                      For the Year Ended December 31,
                         2012              2011
Oil (Bbls):                   97,598            27,784
Gas (Mcf):                    162,213           11,646
Equivalents (BOE):            124,634           29,725

Average Price:
Oil ($/Bbl):             $    93.73         $   93.94
Gas($/Mcf):              $    2.68          $   3.08

The following tables present our production data for the referenced geographic
areas for the periods indicated:

                 For the Year Ended December 31, 2012
                    Gas           Oil       Equivalent
                    (Mcf)      (Bbls)   (BOE)
Eagle Ford:
Cotulla             48,492         50,780     58,862
Moulton             10,268         34,106     35,817
Sweet Home          -              -          -
Hackberry           101,335        8,189      25,078
Eaglebine           -              -          -
Other Onshore       2,118          4,523      4,876
Total               162,213        97,598     124,634
                    For the Year Ended December 31, 2011
                    Gas            Oil        Equivalent
                    (Mcf)          (Bbls)     (BOE)
Eagle Ford:
Cotulla             9,551          24,829     26,421
Moulton             -              -          -
Sweet Home          -              -          -
Hackberry           -              -          -
Eaglebine           -              -          -
Other Onshore       2,095          2,955      3,304
Total               11,646         27,784     29,725

Drilling Activity

The following table sets forth the number of gross exploratory and development
wells ZaZadrilled, or in which it participated, during 2012 and 2011.
Productive wells are either producing wells or wells capable of production.

                     Gross Wells
                       Exploratory                 Development
                       Productive  Dry  Total   Productive  Dry  Total
Year ended             -            -       -       13           -       13
December 31, 2012
Year ended             -            -       -       20           -       20
December 31, 2011

The following table sets forth the number of net exploratory and net
development wells drilled by ZaZaduring 2012 and 2011 based on its
proportionate working interest in such wells.

                     Net Wells
                       Exploratory                 Development
                       Productive  Dry  Total   Productive  Dry  Total
Year ended             -            -       -       1.2          -       1.2
December 31, 2012
Year ended             -            -       -       2.0          -       2.0
December 31, 2011

As of December31, 2012, ZaZa had an additional two exploratory wells being
drilled, the Stingray and Boening, that are currently being completed and are
pending final results.

Conference Call and Webcast

ZaZa Energy Corporation (NASDAQ: ZAZA) will be hosting a conference call and
webcast to discuss its financial and operating results on April 2, 2013, at 10
a.m. EDT. Interested parties can listen to the call by dialing toll-free at
866-515-2914 and entering pass code 28580424 (International number:
617-399-5128). Interested parties can also participate on the webcast by
visiting the ZAZA Energy Corporation website at For those
who will be unable to participate, a webcast and teleconference replay will be
available approximately one hour after the completion of the call (toll-free:
888-286-8010 / International: 617-801-6888 / pass code: 18200272). The live
webcast and replay link can be found in the “Investor Relations” section of
the ZAZA Energy website at

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.


JMR Worldwide
Jay Morakis, Partner, 212-786-6037
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