ZaZa Energy Announces McAdams Well 30-Day Initial Production Results Company Working Through Term Sheets for New Reserve Base...
October 01 2014 - 7:00AM
Business Wire
ZaZa Energy Corporation (“ZaZa” or the “Company”) (NASDAQ:ZAZA)
today announced the 30-Day production results from its East Texas
McAdams Cattle Company 1H horizontal well (“McAdams 1H”) in Walker
County, Texas.
Over the first 30 active days of production, average
three-stream production for the McAdams 1H was approximately 929
boe/d, consisting of about 529 b/d of liquids and 2,400 mcf/d of
natural gas. Currently, the well is only producing from the 16
deepest stages (approximately 3,300 feet) of the lateral. Stages
17-23 remain closed while the operator conducts additional
production testing. Water production over the first 30 days
averaged approximately 2,379 b/d, with 29% of the hydraulic
fracturing load water recovered at the end of the period. Given the
nature of the carbonate formation in which the McAdams 1H is
completed, ZaZa expects to recover and produce almost all of the
load water injected during fracturing.
ZaZa also is working through term sheets to execute a new
reserve based debt facility, which the Company will use to
immediately take out its existing Senior Secured Notes. Remaining
availability will be used to fund JV capital expenditures. The
facility is not expected to contain any dilution or equity
component. ZaZa plans to close on this facility before the end of
the year.
President and CEO Todd A. Brooks stated, “The Company has three
active well operations in East Texas. On the McAdams 1H, about
one-third of the lateral is closed while we analyze relative
contribution results along the 16 stages currently open. We are in
the process of completing the Josey Wales 1H lateral well, which
targets a formation similar to the McAdams 1H. Lastly, the Company
is about two-thirds of the way through the drilling of the Colburn
3H, which will be our first lateral test of a deeper, known
productive formation in the area.”
All of the aforementioned wells are operated by EOG Resources,
Inc., with ZaZa holding a 25% working interest.
About ZaZa Energy CorporationHeadquartered in Houston,
Texas, ZaZa Energy Corporation is a publicly-traded exploration and
production company with primary assets in the Eagle Ford and Eagle
Ford East resource plays in Texas. More information about the
Company may be found at www.zazaenergy.com.
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. All statements, other
than statements of historical fact, including without limitation,
statements and projections regarding the Company’s future financial
position, operations, performance, business strategy, returns,
budgets, reserves, levels of production and costs, ability to raise
additional capital or refinance indebtedness, statements regarding
future commodity prices and statements regarding the plans and
objectives of the Company’s management for future operations, are
forward-looking statements. The Company’s forward looking
statements are typically preceded by, followed by or include words
such as “will,” “may,” “could,” “would,” “should,” “likely,”
“believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,”
“goal,” “project,” “plan,” “intend” and similar words or
expressions. The Company’s forward-looking statements are not
guarantees of future performance and are only predictions and
statements of the Company’s beliefs based on assumptions that may
prove to be inaccurate. Forward-looking statements involve known,
unknown or currently unforeseen risks and uncertainties that may be
outside of the Company’s control and may cause the Company’s actual
results and future developments to differ materially from those
projected in, and contemplated by, such forward-looking statements.
Risks, uncertainties and other factors that could cause the
Company’s actual results to materially differ from the expectations
reflected in the Company’s forward-looking statements include,
without limitation, our former registered public accounting firm
has expressed doubt about our ability to continue as a going
concern; fluctuations in the prices for, and demand for, oil,
natural gas and natural gas liquids; our substantial level of
indebtedness; risks associated with whether and when the reserve
based debt facility will be finalized and on what terms; problems
with our joint ventures or joint venture partners; our ability to
raise necessary capital in the future; exploratory risks associated
with new or emerging oil and gas formations; risks associated with
drilling and operating wells; inaccuracies and limitations inherent
in estimates of oil and gas reserves; our ability to replace oil
and gas reserves and any other factors or risks listed in the
reports and other filings that the Company has filed and may file
with the Securities and Exchange Commission. Any forward-looking
statements made by the Company in this presentation and in other
written and oral statements are based only on information currently
available to the Company and speak only as of the date on which
they are made. The Company undertakes no obligation to update or
revise any of its forward-looking statements, whether as a result
of new information, future developments or otherwise.
ZaZa Energy CorporationPaul F. Jansen, 713-595-1900Chief
Financial OfficerorJay Morakis, 212-266-0191Investor
Relationsjay.morakis@zazaenergy.com
ZaZa Energy (CE) (USOTC:ZAZA)
Historical Stock Chart
From Dec 2024 to Jan 2025
ZaZa Energy (CE) (USOTC:ZAZA)
Historical Stock Chart
From Jan 2024 to Jan 2025