ZaZa Energy Signs Eagle Ford JV In DeWitt County

Recent JVs and Asset Sales Provide Liquidity and a Platform for Production Growth
ZaZa Energy Sweet Home DeWitt County Eagle Ford Acreage

ZaZa Energy’s Sweet Home – DeWitt County Eagle Ford Acreage | Click to Enlarge

ZaZa Energy has agreed to a joint venture (JV) with a private operator on “non-core” acreage in DeWitt County.

The private company will receive a 75% net revenue interest in 7,600 net acres and has committed to carry ZaZa’s costs for drilling two horizontal wells before April 15, 2014. The property includes 12 “high graded” development units in an area where ZaZa has ~23,000 net acres.

Additionally, ZaZa receives a credit of $750,000 for infrastructure expenses and a $300,000 credit for lease upkeep from its JV partner.

Todd A. Brooks, CEO, stated, “During the third quarter, we continued to execute on our strategy as we consummated a new JV on a 7,600 acre portion of our Sweet Home acreage in DeWitt and Lavaca Counties with a proven operator who is actively running multiple rigs nearby.”

ZaZa Is Active in Deals Across the Eagle Ford and Eaglebine

ZaZa is also participating in a JV in the Eaglebine. EOG, ZaZa’s partner, recently opted into phase two of the JV agreement and accelerated development in the area.

During the third quarter, ZaZa sold 10,000 acres in Fayette, Gonzales, and Lavaca counties for ~$29 million.

The two joint ventures combined with asset sales are providing the liquidity needed for ZaZa to develop its assets more aggressively.

Todd A. Brooks, CEO, stated, “In addition, we closed on the sale of our remaining Eagle Ford Moulton acreage in Gonzales and Fayette Counties, and we made significant progress as it relates to our JV partnership in the Eaglebine/Eagle Ford East.”

Read the full release at zazaenergy.com

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R.T. Dukes

R.T. Dukes

Managing Editor at EagleFordShale.com
R.T. is the managing editor of EagleFordShale.com. In prior roles, he advised major oil companies on strategy, the macro business environment, and opportunity screening. 2503 Robinhood, Houston, TX, 77005, U.S.A. | Telephone: 832.429.4790

Comments

  1. SweetHome landowner says:

    So does this mean that Lavaca county portion of ZaZa’s Sweet Home prospect as shown in the map is NOT included in this new JV?

    • We have also been trying to understand the status of ZaZa’s Lavaca county Sweet Home prospect that continues to be shown and high-lighted on the maps, without any notification or info from ZaZa or confirmation of any lease renewal/extension options.
      ZaZa does not respond to our inquiries as they have in the past.

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