UPDATE: ZaZa Energy Shares Hold 4% Gains, But Off Day High on Asset Sale, JV
ZaZa Energy ( ZAZA ) shares are up 3.6% to $1.71, but well off an intraday high of $1.98, after the company said it will sell about 10,000 net acres located in Fayette, Gonzalez and Lavaca Counties, Texas for about $43.3 million. In the pre-bell session, the stock added over 21%.
The closing of the sale is expected to occur during Q2 and net proceeds from the sale, after customary closing purchase price adjustments and expenses, are expected to be about $42 million.
It also plans to sell the remaining acreage in its Moulton properties for about $9.2 million. This transaction is also expected to close during Q2.
Separately, it says it signed a joint exploration and development agreement with one of the largest independent crude oil and natural gas companies in the U.S. to further develop ZAZA's Eaglebine assets.
ZAZA has a day low of $1.67, with a 52-week range of $1.20 - $5.18.