ZaZa Completes Remaining Moulton Assets Sale

Bought 10,300 net acres in Fayette, Gonzalez and Lavaca counties, TX, the Moulton properties.

ZaZa Energy Corp. (Nasdaq: ZAZA) completed the transaction for the sale of its remaining Moulton properties to a subsidiary of Sanchez Energy Corp. (NYSE: SN) for $29.3 million.

The properties are about 10,300 net acres located in Fayette, Gonzalez and Lavaca counties, Texas, in the Eagle Ford and include ZaZa’s interest in associated producing wells.

A portion of the net proceeds will be used to further reduce its outstanding debt obligations as required under its debt agreements. Pro Forma financial information can be found in the company’s Form 8-K that was filed with the U.S. Securities and Exchange Commission on July 31.

“This divestiture provides us with additional working capital and greater financial flexibility as we move through 2013 with a clear objective: Monetize and JV our Eagle Ford West assets in order to improve our balance sheet and build our production base alongside our JV partner in the Eaglebine/Eagle Ford East Play. Progress in this joint venture is continuing as planned and we anticipate timely drilling of the first three wells as part of the agreement,” said, Todd A. Brooks, ZaZa’s president and CEO, in the release.

ZaZa Energy Corp., together with its subsidiaries, focuses on the exploration and development of unconventional oil and gas resources in the U.S. The company is based in Houston.