ZaZa Energy Corp. (NASDAQ: ZAZA) entered into a $7.5 million capital markets transaction with Crede Capital Group LLC, a Los Angeles-based family office, the company said July 21.

The proceeds will fund additional East Texas development and lease acquisitions, ZaZa said.

The investment will be made in two phases, ZaZa said, noting that the first phase closed July 21. There was a total of $5 million in proceeds in exchange for some of ZaZa’s common stock, priced at 83 cents each, the company added.

The exchange included 0.6 warrants for every share, the company noted. The second phase is scheduled to close Oct. 20, the company said, noting that proceeds of $2.5 million are expected. This exchange will also include 0.6 warrants for every common share, ZaZa said.

Houston-based ZaZa Energy Corp. explores and produces domestic unconventional oil and natural gas.