ZaZa Energy Corp. (NASDAQ:ZAZA) has closed the third transaction with its joint venture (JV) 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.
ZaZa assigned at closing to its JV 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 $4.7 million of upfront cash and a carry of the company’s share of future JV costs of up to $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. ZaZa’s JV partner also has committed to drill an additional two wells, with the first well beginning no later than July 1.