ZaZa Energy Corp. (Nasdaq: ZAZA) has closed on its previously announced transaction with a joint venture partner to expand its Eaglebine/Eagle Ford East assets, the company announced Oct. 21.
Under terms of the agreement, ZaZa received $17.8 million net cash, plus production interests in 23 wells with a proved developed resources (PDP) present value of $17 million based on an independent reserves report.
The company also received a 25% working interest in 19,000 net additional Eaglebine/Eagle Ford East acres, while retaining 12,300 net wholly-owned acres in phase three under the original agreement.
The transaction brings the joint venture’s current total land position to 110,000 net acres.
The Eaglebine includes both the Eagle Ford shale and the Woodbine Sandstone, which was drilled in the 1930s during the discovery of the giant East Texas field.
ZaZa Energy Corp. is an independent energy company that is heavily involved in both conventional and unconventional resource plays in the U.S. The company is based in Houston.