ZaZa Energy Corp. (NASDAQ: ZAZA) updated its joint exploration and development agreement with its joint venture (JV) partner, which is an independent domestic oil and natural gas developer, the company said March 12.
The JV agreement update will allow the company to further develop its Eaglebine/Lower Cretaceous assets in the Eagle Ford-East, ZaZa Energy added.
The JV partner was given 75% working interest in this "Phase III" acreage, ZaZa said, noting that it received about $4.7 million--upfront cash and carry--of its own share of future JV costs.
The upfront cash and carry could total $9.2 million, the company added.
An additional two-well drilling commitment was part of the update, the company said. The JV partner will drill the wells, scheduled to be completed July 1, the company added.
Related to the agreement update's completion, ZaZa received an additional $1.1 million, the company said.
“We have now completed all three phases of the acreage elections with our JV partner. The additional $15 million of consideration positions us well for our expected JV drilling appraisal and development over the course of 2014,” said Todd A. Brooks, president and CEO.
Houston-based ZaZa Energy Corp. explores and produces throughout the Eagle Ford.
Recommended Reading
Exxon Shale Exec Details Plans for Pioneer’s Acreage, 4-mile Laterals
2024-05-03 - Exxon Mobil plans to drill longer, more capital efficient wells in the Midland Basin after a major boost from the $60 billion Pioneer Natural Resources acquisition. Data shows that Exxon is a leading operator drilling 4-mile laterals in the Permian’s Delaware Basin.
Infrastructure Company Savage Acquires Houston’s Texon
2024-05-03 - Texon, a midstream service provider, will continue operations under its legacy brand.
Antero Midstream Buys Summit Midstream Assets in $70M Deal
2024-05-03 - The deal by Antero Midstream strengthens Antero Resources’ gathering and compression in Marcellus Shale.
NSTA Offers 31 More Licenses in Latest Licensing Round
2024-05-03 - The leasing round attracted 115 bids from 76 companies vying for 257 blocks and partial blocks in the U.K. Continental Shelf.
Occidental Explores Sale of Permian Assets Worth Over $1B, Sources Say
2024-05-03 - Occidental Petroleum is exploring a sale of assets in the Barilla Draw region of Texas, which is located within the Delaware portion of the Permian Basin.