zaza energy corp (ZAZA) Key Developments
ZaZa Energy Corporation Announces Amendment No. 10 to the Senior Secured Notes Purchase Agreement
Aug 11 15
Effective as of August 5, 2015, ZaZa Energy Corporation entered into Amendment No. 10 to the Senior Secured Notes Purchase Agreement (Amendment No. 10), which permits the Company to issue additional Senior Secured Notes in an aggregate principal amount not to exceed $500,000. Amendment No. 10 required that any such additional note would be issued solely for cash in an amount equal to 100% of the principal amount of the notes. In accordance with Amendment No. 10, effective as of August 5, 2015, the Company issued an aggregate of $340,000 in principal amount of additional Senior Secured Notes (the August 2015 Notes) in equal amounts to Jubalee Ltd. (an affiliate of John E. Hearn, Jr., a director of the Company) and $187,000.00 to Todd A. Brooks, the Company's Executive Director, President and Chief Executive Officer. Each of the purchasers of the August 2015 Notes also entered into a Supplement to Securities Purchase Agreement, each dated as of August 5, 2015 (each, a Supplement), under which the note purchaser agreed to be bound by and to comply with the terms and provisions of the Senior Secured Notes Purchase Agreement in connection with the issuance of the August 2015 Notes. Mr. Brooks and Jubalee Ltd. also executed joinders (the Collateral Agency Agreement Joinders) to that Collateral Agency Agreement, dated as of February 21, 2012 (the Collateral Agency Agreement), among U.S. Bank, the Company, its domestic subsidiaries and the Purchasers. The terms of the August 2015 Notes are identical to the terms of the currently outstanding Senior Secured Notes. Thus, the August 2015 Notes bear interest at a rate of 10.00% per annum, mature on February 21, 2017, are guaranteed by all of subsidiaries and are secured by a first-priority lien on substantially all of assets and those of domestic subsidiaries. To the extent such assets include stock of any foreign subsidiaries, only 65% of such foreign subsidiary stock is to be pledged as security for the August 2015 Notes. The August 2015 Notes (along with the Senior Secured Notes) rank senior to all of other debt and obligations.
ZaZa Energy Corporation Receives Non-Compliance Notice From NASDAQ
Aug 7 15
On August 3, 2015, ZaZa Energy Corporation received a deficiency letter from The NASDAQ Stock Market LLC indicating that, based on the company’s closing bid price for the 30 consecutive business days prior to August 3, 2015, the company does not comply with the minimum bid price requirement of $1.00 per share, as set forth in NASDAQ Listing Rule 5550(a)(2). In accordance with NASDAQ Listing Rule 5810(c)(3)(A), the company has a grace period of 180 calendar days to regain compliance with the minimum closing price requirement for continued listing. In order to regain compliance, the minimum closing price per share of the company’s common stock must be at least $1.00 for a minimum of ten consecutive business days during the 180-day grace period. In the event the company does not regain compliance within the 180-day grace period, the company may be afforded an additional 180-day grace period, provided that it demonstrates that it meets all other applicable standards for initial listing on the NASDAQ Capital Market (except the bid price requirement) and provides written notice of its intention to cure the minimum bid price deficiency during the second grace period. If the company fails to regain compliance after the second 180-day grace period, or if the NASDAQ declines to grant the company a second 180-day grace period, the NASDAQ may delist the company’s common stock.
ZaZa Energy Corporation Announces Executive Changes
Jul 15 15
Effective July 9, 2015, Paul F. Jansen has resigned as the chief financial officer and as the chief accounting officer of ZaZa Energy Corporation. Mr. Jansen had also been designated as the company's principal financial officer and principal accounting officer. The board of directors of the company has designated Terry Hobbs, currently serving as the controller & treasurer of the company, as the company's principal financial officer. Ms. Hobbs will continue to serve as the company's controller & treasurer. The board has appointed Charles Ngo, CPA, currently serving as the director financial reporting of the company, as the company's chief accounting officer. Prior to joining company, Ms. Hobbs spent 20 years with TOTAL E&P USA Inc. Prior to joining company, Mr. Ngo worked as senior financial reporting specialist for Crimson Exploration Inc.
ZaZa Energy Reports Mid-Year 2015 Reserves and Operational Update
Jul 6 15
ZaZa Energy Corporation provided a reserves and operations update on the company's activities in the Eagle Ford East, where it has approximately 140,000 gross acres within an Area of Mutual Interest with EOG Resources. ZaZa Energy has announced that proved reserves increased by 487%, reaching 5.9 million barrels of oil equivalent at July 1, 2015, up from 1.0 MMBOE at December 31, 2014. 60% of ZaZa Energy's proved reserves at July 1, 2015 were liquids-weighted, and 83% of the company's proved reserves were classified as proved undeveloped at July 1, 2015. Proved developed reserves increased to 1.0 MMBOE at July 1, 2015, up 46% from 0.7 MMBOE at December 31, 2014. The pre-tax present value of the future net revenues ('PV10') of ZaZa Energy's proved reserves at July 1, 2015 was $48.8 million as compared to $14.5 million at December 31, 2014. All estimated net reserves assume a 25% working interest to ZaZa Energy, with the exception of those wells in which EOG has non-consented (ZaZa Energy - 100% working interest) and certain undeveloped reserves in which Quantum Energy Partners ('Quantum') holds a future participation right (ZaZa Energy - 21% working interest). Should EOG and Quantum non-consent to any of ZaZa's additional proposed development wells, ZaZa Energy would assume a 100% working interest and receive a 4x multiple on the figures included within the report. These two initial wells are part of ZaZa's 2H 2015 eight well vertical development program, each estimated to cost approximately $3.0 million and deliver an internal rate of return of 40% at current commodity prices. ZaZa expects the production results of the new wells to be similar to those achieved by the Company's previous Toby #1V (cumulative one-year production of 181,069 BOE), Grisham #1V (cumulative one-year production of 190,720 BOE), and Laura Unit #1V (cumulative one-year production of 135,911 BOE) wells.
ZaZa Energy Corporation, Annual General Meeting, Jul 06, 2015
Jun 4 15
ZaZa Energy Corporation, Annual General Meeting, Jul 06, 2015., at 11:00 Central Standard Time. Location: Houston Room at the Coronado Club. Agenda: To consider the election of six directors nominated to board of directors to serve until the next annual meeting of stockholders; to approve amendment to the ZaZa corporation long-term incentive plan; to approve issuance of 20% or more of the outstanding shares of common stock in connection with one or more exchanges of any or all of $47,300,000 in aggregate principal amount of 8.00% subordinated notes due 2017; to approve issuance of 20% or more of the outstanding shares of common stock in connection with the issuance on April 30, 2015 of shares of series a convertible preferred stock and warrants for the purchase of shares of common stock; to ratify the appointment of selection of BDO USA, LLP as independent registered public accounting firm of the company for the fiscal year ending December 31, 2015; and to transact any other business as may properly come before the annual meeting or any adjournment thereof.