ZaZa Forms JV To Develop Eaglebine

Formed a JV to develop its Eaglebine assets, including acreage in Walker, Grimes, Madison, Trinity and Montgomery counties, Texas.

ZaZa Energy Corp. (NYSE: ZAZA) has formed a joint venture with EOG Resources Inc. (NYSE: EOG) to develop its Eaglebine assets.

ZaZa did not identify its joint venture partner, but a memo from Wells Fargo Securities states that the partner is EOG Resources Inc.

Under the terms of the agreement, ZaZa’s joint venture partner will receive up to a 75% working interest in up to 55,000 net acres and operate the acreage, which comprises 73,000 of ZaZa’s 92,000 net mineral acres.

ZaZa will retain a 25% working interest in the 73,000 acres. These assets include acreage in Walker, Grimes, Madison, Trinity and Montgomery counties, Texas which are wholly owned by ZaZa and will also include properties in a separate agreement with a subsidiary of Range Resources Corp. (NYSE: RRC).

Early stage drilling preparations are underway for the first two joint venture wells and ZaZa expects the joint venture partner will drill the first three earning wells by January 2014.

"Partnering with one of the largest unconventional oil focused operators in the country validates the Eaglebine work program that has been executed by ZaZa to date. Our new joint venture will benefit from economies of scale and focus on optimizing field development and accelerating production at a reduced cost," Brooks said.

The development program consists of three phases, each covering a three well drilling program plus associated cash payments. Phases two and three are electable by our partner upon satisfaction of the preceding phase's work obligations.