ZaZa Energy Corporation has closed the announced third transaction with its joint venture partner to further develop its Eaglebine/Lower Cretaceous assets in the Eagle Ford East (the “Phase III Amendment”). Pursuant to the terms of the Phase III Amendment, ZaZa received a total of approximately $15 million in cash and carry consideration and an additional two well drilling commitment. ZaZa’s JV partner has now elected into all of the Company’s acreage in the joint venture.
- Phase III Final Acreage Election. ZaZa assigned at closing to its joint venture partner a 75% working interest in all of the Company’s remaining Phase III acreage. As consideration for this final Phase III acreage election, ZaZa received approximately $4.7 million of upfront cash and a carry of the Company’s share of future joint venture costs of up to approximately $9.2 million. ZaZa received an additional $1.1 million of cash from its partner related to the completion of the Range-ZaZa JV Agreement.
- Drilling Commitment. ZaZa’s JV partner also has committed to drill an additional two wells, with the first well commencing no later than July 1, 2014.
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