ZaZa Energy Corporation Announces Closing of Eaglebine Joint Venture
Chief Operating Officer Moves to Chair ZaZa Energy’s Technical Risk Assessment
HOUSTON -- April 16, 2013
ZaZa Energy Corporation (“ZaZa” or the “Company”) (NASDAQ: ZAZA) today
announced that it has closed the previously announced Joint Exploration and
Development Agreement (“Agreement”) 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 and Madison Counties, Texas, which are wholly owned by ZaZa,
and also incorporate certain properties that are covered within the
Participation Agreement with Range Texas Production, LLC, a wholly-owned
subsidiary of Range Resources Corporation.
Early-stage drilling preparations are already underway for the first two (2)
JV wells and the Company expects that the joint venture partner will have
drilled the first three (3) earning wells by January 2014.
Todd A. Brooks, ZaZa’s President and CEO stated, “This marks the beginning of
what we believe will be a valuable and long-term strategic relationship
between ZaZa and its JV partner. Our new partner has operational and technical
strengths that complement our own, and we look forward to working together as
we de-risk and develop our large, contiguous acreage block in one of the most
exciting emerging plays in East Texas.”
Additionally, the Company disclosed that the Chief Operating Officer, John E.
Hearn, Jr., is departing as COO and transitioning to the role of Chairman of
ZaZa Energy’s new Technical Risk Assessment Committee.
The Technical Risk Assessment Committee (“TRAC”) has been created to oversee
and direct the technical focus on new play assessments, strategic
acquisitions, and long-term portfolio growth for the Company. The Committee
will evaluate and assess the risk profile of new emerging plays and strategic
opportunities and provide comparative analysis and ranking in order of
resource potential and shareholder value. The TRAC will report findings to the
Board of Directors and CEO on a quarterly basis, and is also responsible for
assuring proper technical stewardship for any and all Non-Op Ventures. John
Hearn will act as Chairman, with Kevin Schepel, Executive Vice President,
Exploration and Production and Thomas Bowman, Executive Vice President,
Evaluation, Geology and Geophysics as the other initial Committee members. Mr.
Hearn will remain on the Board of Directors.
Commenting on Mr. Hearn’s departure as COO, Mr. Brooks stated, “John is one of
the three founders of ZaZa, along with myself and Gaston Kearby, and is a dear
friend. We are all grateful for his talented leadership of the Company. I look
forward to continuing to work with John on the Board and the Technical Risk
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 most recent
filings 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, 212-786-6037
Press spacebar to pause and continue. Press esc to stop.