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ZaZa Energy +6.2% as it moves to continue Eaglebine joint venture

  • ZaZa Energy (ZAZA +6.2%) says it will move ahead with the third and final phase of its joint venture with EOG Resources (EOG -0.4%) developing the emerging Eaglebine tight oil play in east Texas.
  • EOG will receive a 75% working interest in the remaining Phase III acreage, and ZAZA will receive $4.7M of upfront cash and a carry of the partner's share of future joint venture costs of up to ~$9.2M.
  • EOG also commits to drill an additional two wells, with the first commencing no later than July 1.
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Comments (1)
  • Harold McGowen
    , contributor
    Comments (32) | Send Message
     
    There is no real Eaglebine play on the bulk of this acreage at this time. The drilling going on in this area by EOG right now is actually in the Buda-Rose commingled oil play discovered and most successfully exploited by Navidad Resources, LLC. This play is in the lower cretaceous Buda, Georgetown, Edwards, and Glen Rose formations. It is a fractured carbonate play spanning 1,400 ft of TVD being exploited using vertical wells and stage fracturing. Some horizontal Buda wells are being drilled by EOG to the north of the ZaZa acreage. EOG is drilling in eastern Madison county north of the ZaZa block.
    17 Mar 2014, 12:47 PM Reply Like
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