ZaZa Energy is selling 10,300 net acres in Fayette, Lavaca, and Gonzales counties to a subsidiary of Sanchez Energy for $28.8 million. The properties are part of ZaZa's Moulton prospect that can be seen in the attached map.
Sanchez Energy's SN Marquis subsidiary has made a $1.4 million down payment and expects to close the deal by the end of July
The price is approximately 30% less than what ZaZa had planned to sell the acreage for just a few months ago. The previous buyer planned to pay more than $43 million, but was not able to secure financing.
Todd A. Brooks, CEO, stated, "Given the current landscape, we believe that transacting at this metric was the best and most prudent action for the company at this time. We remain focused on monetizing select Eagle Ford assets in order to improve our balance sheet and we are currently pursuing other joint ventures in the area. In the Eaglebine, our joint venture is progressing as planned and we anticipate timely drilling of the first three wells as part of the agreement."
The companay's Eaglebine joint venture is operated by EOG Resources.
Read the full press release at zazaenergy.com
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