ZaZa Energy Gathers Funds for Eaglebine Development

July 23, 2014 Kirk Eggleston

Eagle Ford-focused ZaZa Energy Corp. entered into a $7.5 stock deal with Los Angeles-based Crede Capital Group LLC, the company said in late July of 2014.

The proceeds will fund additional development and lease acquisitions in ZaZa's East Texas area, the company said in a prepared release.

Crede purchased a total of $5-million of ZaZa common stock, priced at $0.83 each. The investment will be made in two phases, according to the company. The first phase closed on July 21st. The transaction includes 0.6 warrants for every share of ZaZa common stock with a price of $1.1205 per share.

The second phase, which is expected to close in late October, also includes 0.6 warrants for every share of ZaZa common stock. The price for additional shares will be determined by the closing price on the day of closing.

ZaZa - EOG Resources East Texas Eagle Ford JV

In March of 2013, ZaZa Energy and EOG Resources finalized terms on a joint venture (JV) targeting the Eaglebine in Grimes, Madison, Montgomery, Trinity, and Walker counties.

The company has re-focused its attention to the Eaglebine, after divesting 10,300 net Eagle Ford acres in July of 2013 to a subsidiary of Sanchez Energy for $28.8 million. Approximately 82% of ZaZa’s first quarter 2014 production came from the Eaglebine.

EOG Resources - ZaZa Energy Move into Third and Final Phase of Joint Venture Agreement

March 21, 2014 Kirk Eggleston

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.

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.

GE - Vess Oil Acquire Woodbine & Eagle Ford Acreage From Enervest - $108 Million

January 9, 2014 R.T. Dukes

GE and Vess Oil have partnered to acquire 13,000 net acres in Brazos, Grimes, and Madison counties from EnerVest for $108 million.

The acreage is producing from the Woodbine and prospective for the Eagle Ford Shale.

This is the third partnership GE Energy Financial Services and Vess Oil have entered. Previous partnerships have acquired reserves in Brazos County, TX, and Kansas. A separate Vess Oil affiliate also operates Woodbine acreage in the Kurten Field adjacent to the assets acquired here.

“I am eager to launch our program and look forward to expansion opportunities predicated on demonstrable results.”

— Ronnie Nutt, COO of Vess Oil

Read the full release at businesswire.com

EOG - ZaZa Joint Venture in the Eaglebine

March 26, 2013 R.T. Dukes

ZaZa Energy and EOG Resources have reached terms on a joint venture (jv) targeting the Eaglebine in Grimes, Madison, Montgomery, Trinity, and Walker counties.

ZaZa is also selling Eagle Ford acreage in separate transactions. Two deals for more than 10,000 acres in the Moulton area were sold to undisclosed buyers for $52.5 million.

EOG gains 55,000 net acres or a 75% interest in 73,000 acres across ZaZa's Eaglebine position if the company elects to move forward with all three phases of the agreement. ZaZa retains 100% interest in 19,000 of it's 93,000 net acres where previous discoveries were made.

Todd A. Brooks, ZaZa’s CEO, stated “Partnering with one of the largest unconventional oil focused operators in the country validates the Eaglebine work program that has been executed by ZaZa to date. Our new joint venture will benefit from economies of scale and focus on optimizing field development and accelerating production at a reduced cost.”

EOG will operate the joint venture and will proceed in phases. Details of the transaction were not disclosed, but EOG will make cash payments and commit to drill three wells in each of the three phases. Phases two and three will go forward at EOG's election.

I bet we see the first three wells drilled by year-end and we'll know if EOG is going forward with phase two and three in early 2014. Of note, Range Resources also has an interest in portions of the acreage.

Read more about the deal at zazaenergy.com

You can also read more about the Eaglebine at our Eagle Ford Geology page

Is the Eaglebine Ready To Take Off?

March 25, 2013 R.T. Dukes

Drilling results in the Eaglebine have been relatively quiet, but operators have leased aggressively in Brazos, Leon, Madison, Walker, and Grimes counties for a few years now.

Halcon Resources will be driving the charge. The company plans to spend almost $500 million and will run 5-7 rigs in the area this year. Encana plans to run a rig as well.

With a few rigs running, we'll know a lot more sooner than later. A ZaZa Energy representative shared his thoughts on the play at an AAPG meeting in San Antonio this past week.

Thomas Bowman, Geophysics at ZaZa Energy, stated "This is everything you want except for six months of production"

I take that to mean well results look promising. The main operators with permits and significant acreage include:

Crimson Exploration
Encana
Halcon Resources
EOG Resources

Read more from Jennifer Hiller at mysanantonio.com