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.
“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