ZaZa Energy Corp. (NASDAQ:ZAZA) has signed an amendment to its joint exploration and development agreement with its current joint venture (JV) partner, one of the largest independent crude oil and natural gas companies in the US, to further develop its Eaglebine/Lower Cretaceous assets in the Eagle Ford East shale play.
The company will immediately assign to its JV partner a 75% working interest in all of its remaining Phase III acreage. As consideration for this final Phase III acreage election, ZaZa will receive approximately $4.7 million of upfront cash and a carry of the company’s share of future JV 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 JV agreement. ZaZa’s JV partner has also committed to drill an additional two wells, with the first well beginning no later than July 1.