ZaZa Energy Corp. has signed an amendment to its agreement with an unnamed joint venture partner to further develop its Eaglebine/Lower Cretaceous assets in the Eagle Ford East.
ZaZa will immediately assign a 75 percent working interest in all of the company’s remaining Phase III acreage to its joint venture partner, reportedly one of the largest independent crude oil and natural gas companies in the United States. As consideration for this final Phase III acreage election, ZaZa will receive approximately $4.7 million of upfront cash and a carry of the company’s share of future joint venture costs of up to approximately $9.2 million. ZaZa received an additional $1.1 million of cash from its partner related to the completion of the Range-ZaZa JV Agreement.
ZaZa’s joint venture partner also has committed to drill an additional two wells, with the first well commencing no later than July 1.
“We have now completed all three phases of the acreage elections with our [joint venture] partner,” said Todd A. Brooks, ZaZa’s president and CEO. “The additional $15 million of consideration positions us well for our expected [joint venture] drilling appraisal and development over the course of 2014.”
Headquartered in Houston, ZaZa Energy is a publicly traded exploration and production company with primary assets in the Eagle Ford and Eagle Ford East plays in Texas.