Toreador Resources Corp., Paris, (NASDAQ: TRGL; PARIS: TOR) has completed a merger with privately held, Houston-based ZaZa Energy LLC, creating the new entity ZaZa Energy Corp. The Houston-based company will have offices in Corpus Christi, Texas, and Paris, and now trades on Nasdaq as “ZAZA.”
ZaZa shareholders received $50 million in notes or cash and 76.2 million shares of the new combined company, representing 75% of shares outstanding. Toreador shareholders received approximately 25.4 million shares, representing 25% of the new company. Each share of Toreador was converted into one share of ZaZa common stock.
The combined portfolio includes the Eagle Ford core and the Eagle Ford-Woodbine (Eaglebine) resource plays in Texas, and the Paris Basin in France with a current total of 423,000 net acres. Both the Eagle Ford and Paris Basin businesses have strategic partnerships with subsidiaries of Hess Corp., New York (NYSE: HES).
In the Eagle Ford core, ZaZa holds 123,000 gross acres and the joint-venture work program forecasts drilling more than 280 wells by the end of 2013. The company is leasing in the Eaglebine to expand its existing 70,000 gross acres to more than 100,000 gross acres in the next 12 months. ZaZa is in discussions with potential JV partners for the Eaglebine acreage and plans to spud a first well by first-quarter 2012.
In the Paris Basin, Toreador has a one-rig oil exploration drilling program targeting traditional reservoirs. The Liassic drilling program of six nonhydraulically fractured wells is expected to commence by year-end 2012, pending final review of permits by the French administration.
Net production in the Eagle Ford core and Paris unconventional is expected to exceed 1,100 bbl. of oil equivalent (BOE) per day by year-end 2012, increasing to 5,000 BOE per day by the end of 2013, not including any future Eaglebine production, Paris Basin conventional or Liassic. Toreador’s conventional proved reserves were 5.5 million bbl. as of year-end 2010.
Rodman & Renshaw LLC, a wholly owned subsidiary of Rodman & Renshaw Capital Group Inc. (NASDAQ: RODM), acted as advisor to ZaZa Energy Corp. as the exclusive agent for the private placement of $100 million of senior secured notes and related warrants in the completion of the merger of Toreador Resources and ZaZa Energy LLC.
Recommended Reading
Texas Freeport LNG NatGas Flows Fall to Near Zero Ahead of Hurricane Beryl
2024-07-08 - With Freeport down, gas flows to the seven big U.S. LNG export plants, including Freeport, was on track to drop to an 11-week low of 11.0 Bcf/d on July 8.
Waha’s Negative Gas Prices Set an Unwelcome, Painful Record
2024-09-03 - Analysts: Gas producers are weathering nearly a month of negative natural gas prices thanks to hedging, but they can’t hold out indefinitely.
Matterhorn Express, Partially Online, to Ease Permian Gas Bloat
2024-09-05 - The long-awaited Matterhorn Express pipeline is shipping small amounts of natural gas out of the Permian Basin, according to an E&P CEO.
Brazos Completes Permian G&P Plant, Announces Another
2024-08-15 - Privately held Brazos Midstream completed a 200 MMcf/d cryogenic gas processing plant in the Midland Basin and plans to build a larger gas processing plant in the second half of 2025.
Analysts: Midstream MLPs Outperforming S&P in 2024
2024-08-14 - The midstream sector has been able to take advantage as capex spending slows and cash flows increase.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.