ZaZa Energy Corporation (ZaZa) announced that it has expanded its position in the Eaglebine trend in eastern Texas to a nearly contiguous total holding of approximately 144,123 gross acres (89,378 net acres as of this writing) through a transaction with Range Texas Production, LLC (Range), a subsidiary of Range Resources Corporation (NYSE: RRC). ZaZa also announced that it will commence a six-well continuous drilling program in May 2012, which will comprise both vertical and horizontal wells.
Under the terms of the transaction with Range, ZaZa will obtain a 75% working interest in the acquired acreage, be the designated operator, commit to drilling a well on the newly acquired acreage (as part of its six-well program), and make two undisclosed payments. The effective date of the transaction is March 1, 2012.
Craig McKenzie, President and Chief Executive Officer of ZaZa, said, “This expansion in the Eaglebine achieves our stated target of holding over 100,000 acres, and the drilling program set to commence in May will expedite our planned growth for the area. ZaZa remains focused on the liquids-rich window of the Eaglebine trend, but also expects to encounter multiple stacked plays that include two additional resource and seven conventional targets.”