ZaZa Energy Corp. (NASDAQ:ZAZA) has closed its purchase and sale agreement with an affiliate of Quantum Energy Partners, which includes an East Texas development agreement comprising Walker, Grimes, Madison, Trinity, and Houston counties.
Pursuant to the terms of the Quantum agreements, ZaZa will receive total consideration of approximately $17 million, which includes $11 million in cash that was paid to ZaZa on Sept. 18. In exchange, ZaZa has assigned to Quantum 6,000 net acres in undeveloped leases within ZaZa’s “Southern Development Area” in East Texas. Quantum’s interest is an undivided one, spread evenly across all of the leases in the 144,000-acre Southern Development Area.
Following the closing of these agreements, ZaZa’s East Texas acreage holdings will comprise two separate development areas, each with different operators and ownership structures.