ZaZa Energy LLC, a wholly owned subsidiary of ZaZa Energy Corp. (NASDAQ: ZAZA) has entered into a new purchase and sale agreement with an independent third party to sell approximately 10,300 net acres of its properties in Fayette, Gonzalez and Lavaca counties, Texas, which ZaZa refers to as its Moulton properties in the Eagle Ford shale play.
The total cash purchase price for the 10,300 net acres is $28.8 million. As part of the agreement, ZaZa has received a down payment of $1.4 million. The closing of the sale is expected to occur on or before July 31, and is subject to normal closing conditions. ZaZa terminated its purchase and sale agreement with the original purchasing party, as this party was unable to fund and close the transaction.
ZaZa President and CEO Todd A. Brooks stated, "We remain focused on monetizing select Eagle Ford assets in order to improve our balance sheet, and we are currently pursuing other joint ventures in the area. In the Eaglebine, our joint venture is progressing as planned, and we anticipate timely drilling of the first three wells as part of the agreement."
Headquartered in Houston, Texas, ZaZa Energy Corp. is a publicly traded exploration and production company with primary assets in the Eagle Ford and Eaglebine resource plays in Texas.