ZaZa Energy Corporation, an independent oil and gas company, focuses on the exploration and production of unconventional oil and gas assets. The company operates primarily through joint ventures in the Eaglebine trend in east Texas and the Eagle Ford trend in south Texas. As of December 31, 2013, it held approximately 64,000 net acres in its areas of operations with proved reserves of approximately 687 MBoe (47% oil). Areas of Operations The company owns producing and non-producing oil and gas acreage in proven or prospective basins that are located in south Texas and east Texas. Almost all of its assets, including long-lived assets, are located within the United States. East Texas — Eaglebine Trend: The company’s acreage in east Texas is located in Madison, Grimes, Walker, Trinity, and Montgomery counties and falls within an eastern extension of the Eagle Ford and Woodbine that the company refers to as the ‘Eaglebine’ trend. As of December 31, 2013, the company owned approximately 44,000 net acres and a non-operated interest in 26 wells (7.2 net) in east Texas. South Texas — Eagle Ford Trend: The company’s acreage in south Texas is located principally in DeWitt and Lavaca counties and falls within the Eagle Ford trend. As of December 31, 2013, it owned approximately 20,000 net acres, and operated and non-operated interests in 7 wells (3.1 net and 3 operated) in south Texas. Joint Ventures In March 2013, the company entered into a joint exploration and development agreement with EOG Resources, Inc. for the joint development of certain of its east Texas properties located in Walker, Grimes, Madison, Trinity, and Montgomery counties, Texas. Under this agreement and its subsequent amendments, the company and EOG Resources, Inc. would jointly develop approximately 134,000 gross acres in east Texas. In September 2013, the company entered into an agreement with Sabine South Texas LLC (Sabine), a subsidiary of Sabine Oil & Gas LLC, for the joint development of a prospect in the Eagle Ford shale formation located in Lavaca and DeWitt counties, Texas. Under this agreement, Sabine agreed to jointly develop with the company approximately 7,600 net acres that the company owned and that consisted a portion of its interest in south Texas. Marketing and Customers The company’s oil production is sold at prices primarily tied to the spot oil markets for West Texas Intermediate. During the year ended December 31, 2013, the company’s customers included Gulfmark Energy, Inc.; Texla Energy Management, Inc.; and Southern Bay Oil & Gas LP. Strategy The company’s strategy is to improve shareholder value through consistent growth in cash flows by focusing on the organic development of its existing assets within its core areas. Major components of its business strategy include obtain strategic and operational advantages by being a ‘First Mover’; utilize advanced geoscience and petroleum methods in evaluating assets; and reduce risk through joint ventures. Regulations The company’s operations generate some hazardous wastes that are already subject to the Federal Resource Conservation and Recovery Act and comparable state statutes. The company and its joint ventures comply with the Oil Pollution Act and related federal regulations. Its operations are in compliance with the Endangered Species Act. The company and its joint ventures comply with the Clean Water Act and related federal and state regulations. The company’s operations are subject to the Federal Clean Air Act and comparable local and state laws and regulations to control emissions from sources of air pollution. Its operations are subject to the requirements of the federal Occupational Safety and Health Act and comparable state laws.
zaza energy corp (ZAZA:NASDAQ CM)
1301 McKinney Street
Houston, TX 77010
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