ZaZa Energy Corporation Announces Closing of Second Eaglebine/Eagle Ford East Transaction with JV Partner

  ZaZa Energy Corporation Announces Closing of Second Eaglebine/Eagle Ford
  East Transaction with JV Partner

Business Wire

HOUSTON -- October 21, 2013

ZaZa Energy Corporation (“ZaZa” or the “Company”) (NASDAQ:ZAZA) today
announced that it has closed the previously announced transaction with its
joint venture partner by executing a Third Amendment and Second Restatement of
Joint Exploration and Development Agreement (the “Agreement”), to further
develop and expand its Eaglebine/Eagle Ford East assets.

Pursuant to the terms of the Agreement, ZaZa received a total of $17.8 MM net
cash plus production interests in 23 wells with a PDP present value of
approximately $17 MM based on an independent reserves report. In addition, the
Company received a 25% working interest in approximately 19,000 net additional
Eaglebine/Eagle Ford East acres, while retaining approximately 12,300 net
wholly-owned acres in Phase III under the original agreement. This transaction
brings the joint venture’s current total land position to approximately
110,000 net acres.

                            TRANSACTION HIGHLIGHTS

  *Acceleration of Phase II. ZaZa’s joint venture partner has elected into
    Phase II ahead of the schedule set forth in the original agreement. As
    consideration for the Phase II election, ZaZa received at the closing (i)
    $17 MM in cash consideration and (ii) interests in 15 of its venture
    partner’s wells outside of the AMI line (the “Additional Wells”) with a
    PDP present value of approximately $3 MM based on an independent reserves
    report. In addition to the preceding, ZaZa will receive 100 percent carry
    consideration for one (1) vertical well completion and two (2) horizontal
    well completions and up to a $1.25 MM credit towards miscellaneous land or
    operational expenses. In return, ZaZa will assign to its joint venture
    partner approximately 20,000 net Phase II acres. To complete its former
    obligation in respect of the third well under Phase I of the Agreement,
    our counterparty also will pay for an additional $1.5 million of ZaZa’s
    costs for one or more additional vertical wells and has provided a further
    $1.5 million cash payment to ZaZa.
  *Acceleration of Phase III. As consideration for the assignment of
    approximately 7,800 net former Phase III acres, ZaZa received further
    interests in the Additional Wells with an incremental PDP present value of
    approximately $11 MM based on an independent reserves report, for a total
    PDP present value in these wells of approximately $14 MM. After closing,
    ZaZa retains approximately 12,300 net Phase III acres, and its joint
    venture partner has the option to elect into some or all of this acreage
    on or before January 31, 2014 by making a further cash payment to ZaZa.
    The original agreement called for a Phase III election by January 31,
    2015.
  *Acreage and Production Exchange. In addition, the Company’s joint venture
    partner assigned to ZaZa (i) a 25 percent working interest in
    approximately 19,000 net additional acres acquired by its venture partner
    in the Agreement’s AMI and (ii) related AMI interests in multiple
    producing wells with a PDP present value of approximately $3 MM. The
    Company also expects additional production in the near future from two (2)
    recently drilled wells, in various stages of completion, within this newly
    assigned acreage. In return for the 25 percent working interest and
    immediately available production, ZaZa paid approximately $700,000 and
    assigned a 75 percent working interest in approximately 18,500 net acres
    of its retained acreage position in Walker and Madison Counties, Texas.

About ZaZa Energy Corporation

Headquartered in Houston, Texas, ZaZa Energy Corporation is a publicly-traded
exploration and production company with primary assets in the Eagle Ford and
Eaglebine/Eagle Ford East 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 2012 Form
10-K and 2013 First and Second Quarter Form 10-Q 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, +1 212-266-0191
Partner
jmorakis@jmrww.com
 
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