HOUSTON--()--ZaZa Energy Corporation (“the Company” or “ZaZa”) (NASDAQ: ZAZA) today announced that it recently received initial approval from the French government regarding the terms of ZaZa’s transaction with Hess Corporation (“Hess”) (collectively, the “Parties”), announced June 11, 2012. This initial approval enabled the Parties to complete the termination of their 2010 agreements on October 1, 2012. As part of the transaction, ZaZa’s working interest in the Parties’ Paris Basin exploration licenses has now been converted into a 5% overriding royalty interest capped at $130 million.
Todd A. Brooks, President and Chief Executive Officer, said, “We are pleased to receive initial approval from the French government for the transaction, which provides ZaZa with attractive royalty rights to a resource play with significant potential. The Company has made significant strides in narrowing our exploration focus to our prolific Eagle Ford and Eaglebine assets in Southern Texas and we look forward to creating value for shareholders.”
About ZaZa Energy Corporation
Headquartered in Houston, Texas, with offices in Corpus Christi, Texas and Paris, France, ZaZa Energy Corporation is a publicly-traded exploration and production company with primary assets in the Eagle Ford and Eaglebine resource plays in Texas. More information about the Company may be found at www.zazaenergy.com.
Safe Harbor Statement
Except for the historical information contained herein, the matters set forth in this news release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. ZaZa intends that all such statements be subject to the “safe-harbor” provisions of those Acts. Many important risks, factors and conditions may cause ZaZa’s actual results to differ materially from those discussed in any such forward-looking statement. These risks include, but are not limited to, estimates of reserves, estimates of production, future commodity prices, exchange rates, interest rates, geological and political risks, drilling risks, product demand, transportation restrictions, actual recoveries of insurance proceeds, the ability of ZaZa to obtain additional capital, and other risks and uncertainties described in the Company’s filings with the Securities and Exchange Commission. The historical results achieved by ZaZa are not necessarily indicative of its future prospects. The Company undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.