EOG Resources joint venture with ZaZa Energy moves into its third and final phase in the Eaglebine. Plans were accelerated in the latter part of 2013 to move forward with the second phase of the joint venture.

Read more: EOG Accelerates Eaglebine JV with ZaZa by Electing into Phase II

In the third phase, ZaZa will receive $15 million and an additional two-well drilling commitment from EOG. As part of the agreement, EOG must begin drilling the first of two wells by July 1, 2014. In exchange, EOG will gain a 75% working interest in all of Zaza's remaining acreage.

Under the third phase, ZaZa Resources will also receive an additional $1.1 million in cash from EOG for the completion of the Range Resources-ZaZa joint venture agreement. Range Resources has an interest in portions of the acreage.

EOG Resources - Zaza Energy Phase III Joint Venture Highlights

• Zaza Energy receives $4.7 million in cash from EOG Resources
• Zaza Energy receives a carry of EOG's share of future joint venture costs of up to ~$9.2 million
• Zaza Energy receives $1.1 million in cash from EOG for the completion of the Range Resources-ZaZa joint venture agreement
• EOG Resources will begin drilling the first of two wells by July 1, 2014 as part of a two-well drilling commitment
• EOG Resources is assigned a 75% working interest in all of ZaZa's remaining acreage

ZaZa Energy and EOG Resources reached terms on the joint venture agreement early in 2013. The company's eastern Eagle Ford acreage is in Grimes, Madison, Montgomery, Trinity, and Walker counties.

Read more at zazaenergy.com