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  • ZaZa Energy Corp. (ZAZA) Courts Potential Sale Of Assets In France's Paris Basin, Looks To Focus On Booming Domestic Eagle Ford And Eaglebine Plays 0 comments
    Oct 4, 2012 2:55 PM | about stocks: ZAZA

    ZaZa Energy, the Houston-based E&P with a substantial position in the Eagle Ford (72k net acres) and Woodbine/Eaglebine (90k contiguous acres) plays down in Texas, as well as the Paris Basin over in France, reported today, in response to an unsolicited third party request, entry into an exclusivity agreement covering the possible sale of the company's ZaZa Energy France S.A.S. division.

    The deal would see ZAZA selling off their 24,260 wholly-owned acres of conventional producing assets in the Paris Basin and as part of the agreement the company has allowed the interested party due diligence access (including the relevant financial books) to the assets in question. While this agreement does not necessitate a final transaction and the company is not under any obligation to report developments until a final agreement is reached, a sale would be consistent with the company's overall strategy and free up capital for use in their burgeoning domestic plays, as well as a variety of other strategic domestic opportunities.

    The company's Paris Basin assets would be a good deal for the undisclosed third party, with 850 BOPD and some 10M bbls (2P reserves) yet to be pulled out. The sale would definitely strengthen the company's focus on the Eaglebine and Eagle Ford as well, igniting a domestic activity rally and ZAZA will be looking to achieve an exceptional valuation for shareholders in the ongoing talks.

    President and CEO of ZAZA, Todd Brooks, affirmed the potential consequent with the deal for redoubling the company's efforts in the prolific Eagle Ford and Eaglebine resource plays, assuring investors that the signing of this exclusivity agreement to further vet the sale of ZAZA's conventional producing concessions in France was wholly consistent with the company's over-the-horizon strategic projections for maximum profitability. By divesting such non-core assets and strengthening the company's balance sheet through such a deal, ZAZA is really looking to create a much more stable overall configuration for capital expenditures, something that should result in not only more productive existing operations, but also a more rapid development of the other identified prospects.

    Let's face it, there are a ton of such prospects here in North America and the shale oil and gas sector shows very few if any signs of slowing down. ZAZA has a great set of tactical options, having already put together a series of potential projects totaling some 60k net acres, development of which should add handsomely to the company's bottom line. Similarly, this move will allow the company to heat up activity on the 162k net acres in Texas where the company recently completed drilling 43 total gross wells into the Eagle Ford.

    More information on ZaZa Energy Corp. can be found at the company's website located at: www.ZaZaEnergy.com

    Please see disclaimer on the MissionIR website http://www.missionir.com/disclaimer.html

    Stocks: ZAZA
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