ZaZa Energy Corporation (ZaZa) announced that it has commenced drilling its first well in the Woodbine region of Texas (also known as the Eaglebine), an emerging resource play in the Eastern trend of the Eagle Ford.
The well is located on acreage acquired through a transaction with Range Texas Production, LLC (Range), a subsidiary of Range Resources Corporation (RRC), announced on March 29, 2012. Under the terms of the transaction with Range, ZaZa obtained a 75% working interest in the acquired acreage, became the designated operator, and has fulfilled its obligation to commence operations on the first well within the agreed upon timeframe.
Todd A. Brooks, President and Chief Executive Officer, said, “We are pleased to begin drilling in this exciting resource play that marks the Eastern trend of the Eagle Ford. The organic rich geologic horizon is thicker and has a higher sand concentration than that seen in the Eagle Ford core, offering higher resource potential per acre at lower drilling costs. Judging by the recent success of other operators in the area, we are very optimistic about our prospects in this resource play, and look forward to advancing our drilling program while simultaneously running our strategic review process to identify a joint venture partner.”
ZaZa’s portfolio of assets now includes approximately 72,000 net acres in the Eagle Ford core, 90,000 nearly contiguous net acres in the Woodbine/Eaglebine play in Grimes, Madison, and Walker Counties, and approximately 24,260 wholly-owned acres of conventional producing assets in the Paris Basin.