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.
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