Zaza Energy Jumps 6% After Closing Accord to Develop Eaglebine Oil Assets
ZaZa Energy ( ZAZA ) shares are up almost 6% at $1.53 but off a day high $1.62 after the company said it has closed a joint exploration and development accord with a unit of Range Resources, improving its financial flexibility to develop the Eaglebine oil assets.
Under the terms of the Agreement, ZaZa's joint venture partner will receive up to a 75% working interest in up to 55K net acres and operate the JV acreage comprising 73K of ZaZa's 92K net mineral acres. ZaZa will retain a 25% working interest in the 73K acres.
Early-stage drilling preparations are already underway for the first two joint venture wells and the company expects that its partner will have drilled the first three earning wells by January 2014.
The shares are up $0.08 at $1.53, at the lower end of a 52-week range of $1.20 - $5.18.