ZaZa slides after launching JV with private equity fund

ZaZa Energy (NASDAQ:ZAZA) shares were not helped today by news of a joint venture with P-E firm Quantum Energy Partners to develop some of its oil and gas properties in east Texas; shares fell 3.7%.

Under the new agreement, ZaZa will assign ~6K net acres of undeveloped land in exchange for $17M in cash and subscription rights to acquire an additional share of Quantum's ownership stake in the first 15 wells created through the partnership over the next two years.

ZaZa will retain its interest in all existing wells as well as the right to participate with Quantum's working interest in its reserved wells; Quantum will be reimbursed for its service and administrative costs with the JV.

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