UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 1, 2015
ZAZA ENERGY CORPORATION
(Exact name of registrant as specified in its charter)
Delaware |
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001-35432 |
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45-2986089 |
(State or other jurisdiction of incorporation or organization) |
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(Commission File Number) |
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(I.R.S. Employer Identification No.) |
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1301 McKinney Street, Suite 2800 Houston, Texas |
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77010 |
(Address of principal executive offices) |
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(Zip Code) |
(713) 595-1900
(Registrants telephone number, including area code)
NOT APPLICABLE
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 7.01 Regulation FD Disclosure.
On July 1, 2015, ZaZa Energy Corporation (the Company or ZaZa Energy ) issued a press release announcing the Companys estimated total proved reserves at July 1, 2015 (the Reserves Release).
The Reserves Release contains certain non-GAAP financial information. The reconciliation of such non-GAAP financial information to GAAP financial measures is included in the Reserves Release. A copy of the Reserves Release is furnished as part of this Current Report on Form 8-K as Exhibit 99.1.
In accordance with General Instruction B.2 of Form 8-K, the information in this Item 7.01 of this Current Report on Form 8-K, including the related Exhibit 99.1, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any registration statement or other filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly stated in such filing.
Item 8.01 Other Events.
The Reserves Release announced that the Companys proved reserves increased by 487%, reaching 5.9 million barrels of oil equivalent (MMBOE) at July 1, 2015, up from 1.0 MMBOE at December 31, 2014. 60% of the Companys proved reserves at July 1, 2015 were liquids-weighted, and 83% of the Companys proved reserves were classified as proved undeveloped at July 1, 2015. Proved developed reserves increased to 1.0 MMBOE at July 1, 2015, up 46% from 0.7 MMBOE at December 31, 2014. The pre-tax present value of the future net revenues (PV10) of the Companys proved reserves at July 1, 2015 was $48.8 million as compared to $14.5 million at December 31, 2014.
Non-GAAP Disclosure
In an effort to provide investors with additional information to compare the relative size and value of the Companys reserves as compared to other companies, we disclose certain non-GAAP financial measures in our earnings press releases and other public disclosures. Pre-tax PV10 value is a non-GAAP financial measure as defined by the SEC. The Company believes that the presentation of pre-tax PV10 value is relevant and useful to the Companys investors because it presents the discounted future net cash flows attributable to the Companys reserves prior to taking into account corporate future income taxes and the Companys current tax structure. The Company further believes investors and creditors use pre-tax PV10 value as a basis for comparison of the relative size and value of the Companys reserves as compared with other companies.
The Standardized Measure is discounted future net cash flows estimated by applying year-end prices to the estimated future production of year-end proved reserves. Future cash inflows are reduced by estimated future production and development costs based on period end costs to determine pre-tax cash inflows. Future income taxes, if applicable, are computed by applying the statutory tax rate to the excess of pre-tax cash inflows over our tax basis in the oil and gas properties. Future net cash inflows after income taxes are discounted using a 10% annual discount rate. PV10 may differ from Standardized Measure because it does not include the effects of income taxes on future net revenues. The effects of income taxes on future net revenue are estimated to be zero for all periods presented, and there is no estimated difference between Standardized Measure and PV10.
The report of Cawley, Gillespie & Associates, Inc., dated June 30, 2015, with respect to the Companys proved reserves as of July 1, 2015 is filed as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
Exhibit No. |
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Description |
23.1 |
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Consent of Cawley, Gillespie & Associates, Inc. |
99.1 |
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Press Release of ZaZa Energy Corporation, dated July 1, 2015 |
99.2 |
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Report of Cawley, Gillespie & Associates, Inc. dated June 30, 2015 |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: July 1, 2015
ZaZa Energy Corporation |
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By: |
/s/ Todd A. Brooks |
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Todd A. Brooks President and Chief Executive Officer |
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3
EXHIBIT INDEX
Exhibit No. |
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Description |
23.1 |
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Consent of Cawley, Gillespie & Associates, Inc. |
99.1 |
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Press Release of ZaZa Energy Corporation, dated July 1, 2015 |
99.2 |
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Report of Cawley, Gillespie & Associates, Inc. dated June 30, 2015 |
4
Exhibit 23.1
CAWLEY, GILLESPIE & ASSOCIATES, INC.
PETROLEUM CONSULTANTS
13640 BRIARWICK DRIVE, SUITE 100 |
306 WEST SEVENTH STREET, SUITE 302 |
1000 LOUISIANA STREET, SUITE 625 |
AUSTIN, TEXAS 78729-1707 |
FORT WORTH, TEXAS 76102-4987 |
HOUSTON, TEXAS 77002-5008 |
512-249-7000 |
817- 336-2461 |
713-651-9944 |
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www.cgaus.com |
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CONSENT OF INDEPENDENT PETROLEUM ENGINEERS
Mr. Todd Brooks
President and CEO
ZaZa Energy Corporation
Houston, Texas
We hereby consent to the references to Cawley, Gillespie & Associates, to the inclusion of or incorporation by reference of our estimates of reserves contained in our report entitled Evaluation Summary, ZaZa Energy Corporation Interests, Various Texas Counties, Proved, Probable and Possible Reserves, As of July 1, 2015 and to the specific references to Cawley, Gillespie & Associates as the independent petroleum engineering firm in this Form 8-K and any amendments thereto and in the Registration Statements on Form S-1 (No. 333-201146), Form S-3 (Nos. 333-196592, 333-184036, 333-192257 and 333-204013) and Form S-8 (Nos. 333-185586 and 333-201951) of ZaZa Energy Corporation and any amendments thereto. We further consent to the inclusion of our report letter dated June 30, 2015 as an exhibit.
Yours truly,
CAWLEY, GILLESPIE & ASSOCIATES, INC. |
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/s/ Cawley, Gillespie & Associates, Inc. |
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Fort Worth, Texas |
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July 1, 2015 |
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Exhibit 99.1
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1301 MCKINNEY STREET
SUITE 2800
HOUSTON, TX 77010 |
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NEWS RELEASE |
ZAZA ENERGY REPORTS MID-YEAR 2015 RESERVES AND OPERATIONAL UPDATE
· Mid-year 2015 proved reserves increased by 487% to 5.9 MMBOE from year-end 2014
· Proved developed reserves increased by 46% to 1.0 MMBOE
· Pre-tax PV10 of proved reserves increased by 238% to $48.8 million
· 3P reserves of 21.5 MMBOE with 270 drilling locations
HOUSTON, TX JULY 01, 2015 ZaZa Energy Corporation (ZaZa or the Company) (NASDAQ:ZAZA) today provided a reserves and operations update on the Companys activities in the Eagle Ford East, where it has approximately 140,000 gross (35,000 net) acres within an Area of Mutual Interest (AMI) with EOG Resources (EOG). The Companys estimated reserves, including the estimated probable and possible reserves, were prepared by its independent reservoir engineering firm, Cawley, Gillespie & Associates, Inc.
Proved Reserves
ZaZa Energy has announced that proved reserves increased by 487%, reaching 5.9 million barrels of oil equivalent (MMBOE) at July 1, 2015, up from 1.0 MMBOE at December 31, 2014. 60% of ZaZa Energys proved reserves at July 1, 2015 were liquids-weighted, and 83% of the Companys proved reserves were classified as proved undeveloped at July 1, 2015. Proved developed reserves increased to 1.0 MMBOE at July 1, 2015, up 46% from 0.7 MMBOE at December 31, 2014. The pre-tax present value of the future net revenues (PV10) of ZaZa Energys proved reserves at July 1, 2015 was $48.8 million as compared to $14.5 million at December 31, 2014.
Additionally, ZaZa Energys mid-year 2015 reserve report identified 6.8 MMBOE of probable reserves and 8.7 MMBOE of possible reserves, for total 3P reserves of 21.5 MMBOE. ZaZa Energys 3P reserves are located within its 140,000 gross acre East Texas area of Walker, Madison and Grimes counties.
All estimated net reserves assume a 25% working interest to ZaZa Energy, with the exception of those wells in which EOG has non-consented (ZaZa Energy - 100% working interest) and certain undeveloped reserves in which Quantum Energy Partners (Quantum) holds a future participation right (ZaZa Energy ~21% working interest). Should EOG and Quantum non-consent to any of ZaZas additional proposed development wells, ZaZa Energy would assume a 100% working interest and receive a 4x multiple on the figures included within the report.
The table below summarizes ZaZas estimated net reserves using SEC pricing, broken out by reserve category.
713-595-1900 (OFFICE) □ □ 713-595-1919 (FAX)□ □ □WWW.ZAZAENERGY.COM
PAGE | 2
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Oil |
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NGL |
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Gas |
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Total 1 |
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PV10 2 |
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Gross |
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(MBbl) |
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(MBbl) |
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(MMcf) |
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(MBOE) |
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% Liquids |
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($ MM) |
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Locations |
Proved Developed Producing |
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253.2 |
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126.1 |
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1,863.8 |
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690.0 |
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55.0% |
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$9.9 |
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35 |
Proved Developed Behind Pipe |
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50.9 |
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30.3 |
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1,355.4 |
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307.0 |
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26.4% |
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3.7 |
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4 |
Proved Undeveloped |
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1,410.2 |
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1,664.2 |
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11,188.1 |
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4,939.1 |
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62.2% |
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35.1 |
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53 |
Total Proved Reserves |
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1,714.3 |
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1,820.7 |
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14,407.4 |
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5,936.2 |
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59.5% |
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$48.8 |
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92 |
Probable |
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1,947.1 |
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2,297.9 |
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15,448.2 |
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6,819.7 |
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62.2% |
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$36.8 |
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77 |
Possible |
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2,496.4 |
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2,945.4 |
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19,801.0 |
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8,741.9 |
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62.2% |
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32.7 |
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101 |
Total 3P Reserves |
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6,157.7 |
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7,064.0 |
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49,656.5 |
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21,497.8 |
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61.5% |
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$118.3 |
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270 |
1 Based on 6:1 conversion ratio
2 Net pricing based on $64.45/Bbl oil, $21.50/Bbl NGLs, $3.17/Mcf gas
Operations Update
As previously disclosed, pursuant to the terms of the Companys East Texas Joint Operating Agreement with EOG Resources, ZaZa now has the right to propose new development wells in specific locations and maintain its desired minimum drilling pace. ZaZa has proposed the following two new AFEs for Buda-Rose vertical (stack and frac) wells to be located in Walker and Grimes counties: (i) the Butch - T #1 and (ii) the Chocolate - 7 #1. These two initial wells are part of ZaZas 2H 2015 eight well vertical development program, each estimated to cost approximately $3.0 million and deliver an internal rate of return of ~40% at current commodity prices. ZaZa expects the production results of the new wells to be similar to those achieved by the Companys previous Toby #1V (cumulative one-year production of ~181,069 BOE), Grisham #1V (cumulative one-year production of ~190,720 BOE), and Laura Unit #1V (cumulative one-year production of ~135,911 BOE) wells.
· Butch - T #1. Identified as the first well to be spud for the Company, located in northwest Walker county. The location has been completed, the well has been permitted, and the drilling contractor has been identified. The well is expected to spud in July 2015.
· Chocolate - 7 #1. Identified as the second well to be spud for the Company, located in northeast Grimes county. The location has been surveyed and stacked, the application to drill has been submitted and is pending approval. The Company expects to spud the well in 3Q 2015.
· Three Workovers. ZAZA is also moving forward with workovers on three existing Walker county wells to 1) re-frac the Buda in the Josey Wales #1HR, 2) drill plugs out over the Eagle Ford, Buda, and Glen Rose in the Josey Wales #1, and 3) rod-pump test the Woodbine in the True Grit #1. The Company expects to commence workover operations in July 2015.
Todd Brooks, President and CEO of ZaZa Energy commented, We are pleased to have our proved reserves increase five-fold from the year-end, which confirms ZaZas significant drilling inventory on its 140,000 gross acreage position in the Eagle Ford East. Our operational strategy is focused on drilling proven, highly-economic Buda-Rose vertical stack and frac wells that will increase our cash flow, production, and reserves.
Certain Definitions
Under Securities and Exchange Commission guidelines, the commodity prices used in the July 1, 2015
PAGE | 3
and December 31, 2014 PV10 estimates were based on the 12-month unweighted arithmetic average of the first day of the month prices for the period July 1, 2014 through June 1, 2015, and for the period January 1, 2014 through December 1, 2014, respectively, adjusted by lease for transportation fees and regional price differentials. For crude oil volumes, the average West Texas Intermediate posted price of $71.68 per barrel used to calculate PV10 at July 1, 2015 was down 25% from the average price of $94.99 per barrel used to calculate PV10 at December 31, 2014. For natural gas volumes, the average Henry Hub spot price of $3.39 per million British thermal units (MMBTU) used to calculate PV10 at July 1, 2015 was down 22% from the average price of $4.35 per MMBTU used to calculate PV10 at December 31, 2014. All prices were held constant throughout the estimated economic life of the properties.
The SEC requires oil and natural gas companies, in filings made with the SEC, to disclose proved reserves, which are those quantities of oil and natural gas that by analysis of geoscience and engineering data can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations.
Probable reserves are those additional reserves that are less certain to be recovered than proved reserves but which, together with proved reserves, are as likely not to be recovered. Possible reserves are those additional reserves that are less certain to be recovered than probable reserves.
Non-GAAP Disclosure
In an effort to provide investors with additional information to compare the relative size and value of ZaZas reserves as compared to other companies, we disclose certain non-GAAP financial measures in our earnings press releases and other public disclosures. Pre-tax PV10 value is a non-GAAP financial measure as defined by the SEC. ZaZa believes that the presentation of pre-tax PV10 value is relevant and useful to the Companys investors because it presents the discounted future net cash flows attributable to ZaZas reserves prior to taking into account corporate future income taxes and the Companys current tax structure. ZaZa further believes investors and creditors use pre-tax PV10 value as a basis for comparison of the relative size and value of ZaZas reserves as compared with other companies.
The Standardized Measure are discounted future net cash flows estimated by applying year-end prices to the estimated future production of year-end proved reserves. Future cash inflows are reduced by estimated future production and development costs based on period end costs to determine pre-tax cash inflows. Future income taxes, if applicable, are computed by applying the statutory tax rate to the excess of pre-tax cash inflows over our tax basis in the oil and gas properties. Future net cash inflows after income taxes are discounted using a 10% annual discount rate. PV10 may differ from Standardized Measure because it does not include the effects of income taxes on future net revenues. The effects of income taxes on future net revenue are estimated to be zero for all periods presented and there is no estimated difference between Standardized Measure and PV10.
About ZaZa Energy Corporation
Headquartered in Houston, Texas, ZaZa Energy Corporation is an independent oil and natural gas exploration, production and development 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
PAGE | 4
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 Companys 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 Companys management for future operations, are forward-looking statements. The Companys 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 Companys forward-looking statements are not guarantees of future performance and are only predictions and statements of the Companys beliefs based on assumptions that may prove to be inaccurate.
For example, the Companys ability to implement the drilling and workover projects described above under Operations Update is dependent upon addressing our current liquidity issues, as described in our most recent quarterly report on Form 10-Q, including obtaining financing that will both provide additional operating capital and permit us to refinance our 10.00% Senior Secured Notes due 2017. As described in our current report on form 8-K filed on July 1, 2015, the repayment date for those notes has been extended to July 15, 2015. We are engaged in active discussions to address these balance sheet issues, but there can be no assurance those discussions will be successful or on what terms. Forward-looking statements involve known, unknown or currently unforeseen risks and uncertainties that may be outside of the Companys control and may cause the Companys 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 Companys actual results to materially differ from the expectations reflected in the Companys forward-looking statements include, without limitation, our registered public accounting firm expressing doubt about our ability to continue as a going concern and our ability to maintain sufficient liquidity and continue as a going concern; requirements to repurchase our 10.00% Senior Secured Notes due 2017 or our 9.00% Convertible Senior Notes due 2017; our substantial level of indebtedness; the impact of our current financial condition on our business operations and prospects; fluctuations in the prices for, and demand for, oil, natural gas and natural gas liquids; our ability to raise necessary capital in the future; problems with our joint ventures or joint venture partners; 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.
# # #
Source: ZaZa Energy Corporation
Jay Morakis, 212-266-0191
Investor Relations
jay.morakis@zazaenergy.com
Exhibit 99.2
CAWLEY, GILLESPIE & ASSOCIATES, INC.
PETROLEUM CONSULTANTS
13640 BRIARWICK DRIVE, SUITE 100 |
306 WEST SEVENTH STREET, SUITE 302 |
1000 LOUISIANA STREET, SUITE 625 |
AUSTIN, TEXAS 78729-1707 |
FORT WORTH, TEXAS 76102-4987 |
HOUSTON, TEXAS 77002-5008 |
512-249-7000 |
817- 336-2461 |
713-651-9944 |
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www.cgaus.com |
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June 30, 2015
Mr. Todd Brooks
President and CEO
ZaZa Energy Corporation
1301 McKinney Street, Suite 2800
Houston, Texas 77010
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Re: |
Evaluation Summary (SEC Prices) ZaZa Energy Corporation Interests Various Texas Counties |
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Proved, Probable and Possible Reserves |
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As of July 1, 2015 |
Dear Mr. Brooks:
As requested, we are submitting this report, completed June 30, 2015, of the estimates of the proved, probable and possible reserves, and the forecasts of the resulting economics effective as of July 1, 2015 attributable to the ZaZa Energy Corporation interests in certain properties located in various Texas counties. We understand that this report may be used for IRS or SEC purposes. This report has been prepared for ZaZa Energy Corporation pursuant to the rules, regulations and guidelines of the Securities and Exchange Commission, Item 1202 (a) (8) of Regulation S-K, for reporting corporate reserves and future net revenue. The results of these evaluations are summarized below:
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Total Proved |
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Proved Developed Producing |
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Proved Developed Behind Pipe |
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Proved Undeveloped |
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Probable |
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Possible |
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Net Reserves |
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Oil, Mbbl |
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1,714.3 |
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253.2 |
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50.9 |
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1,410.2 |
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1,947.1 |
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2,496.4 |
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Gas, MMcf |
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14,407.4 |
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1,863.8 |
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1,355.4 |
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11,188.1 |
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15,448.2 |
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19,801.0 |
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NGL, Mbbl |
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1,820.7 |
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126.1 |
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30.3 |
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1,664.2 |
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2,297.9 |
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2,945.4 |
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Net Revenue |
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Oil, M$ |
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110,486.0 |
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16,087.3 |
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3,185.9 |
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91,212.9 |
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125,937.4 |
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161,464.9 |
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Gas, M$ |
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45,648.2 |
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6,102.0 |
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4,273.3 |
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35,272.8 |
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48,703.4 |
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62,426.5 |
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NGL, M$ |
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39,151.3 |
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2,712.4 |
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651.2 |
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35,787.7 |
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49,414.4 |
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63,337.7 |
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Production Taxes, M$ |
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11,205.3 |
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1,193.6 |
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467.0 |
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9,544.6 |
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13,178.6 |
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16,893.8 |
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Ad Valorem Taxes, M$ |
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4,882.1 |
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622.5 |
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202.8 |
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4,056.8 |
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5,601.4 |
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7,180.7 |
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Operating Expenses, M$ |
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44,072.4 |
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8,620.9 |
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1,966.2 |
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33,485.2 |
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46,178.9 |
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59,596.8 |
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Investments, M$ |
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42,961.2 |
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0.0 |
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941.2 |
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42,020.0 |
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57,980.0 |
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74,600.0 |
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Future Net Cash Flow, M$ |
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92,164.5 |
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14,464.6 |
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4,533.2 |
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73,166.7 |
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101,116.3 |
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128,957.7 |
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10% Discounted Cash Flow, M$ |
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48,783.0 |
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9,946.5 |
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3,739.6 |
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35,096.9 |
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36,807.4 |
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32,680.4 |
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The discounted cash flow value shown above should not be construed to represent an estimate of fair market value by Cawley, Gillespie & Associates, Inc. In accordance with the Securities and
ZaZa Energy Corporation Interests
June 30, 2015
Page 2
Exchange Commission guidelines, the future net cash flow, operating income (BFIT), has been discounted at an annual rate of 10% to determine its present worth. The discounted value, present worth, is indicative of the time value of money.
As to the assumptions, methods and procedures used in connection with the preparation of this report, prices were forecast in accordance with Securities and Exchange Commission rules and guidelines. The prices are determined as an unweighted arithmetic average of the first-day-of-the-month benchmark price for each of the twelve months prior to the effective date July 1, 2015. The 12-month average benchmark Henry Hub spot gas price of $3.39 per MMBtu and the 12-month average benchmark WTI Cushing spot oil price of $71.68 per barrel were used. The oil and gas prices were held constant throughout the life of the properties. The prices were adjusted for gravity, quality, heating value, shrinkage, transportation and marketing. For these properties, the resulting oil and gas prices are $64.451 per barrel and $3.168 per MCF, respectively. The resulting plant products price is $21.504 per barrel.
For these properties, the proved producing reserves are forecast using the production performance and analogy methods. The non-producing and undeveloped reserves are forecast using the analogy method. An on-site field inspection of the properties has not been performed. The mechanical operation or conditions of the wells and their related facilities have not been examined nor have the wells been tested by Cawley, Gillespie & Associates, Inc. Possible environmental liability related to the properties has not been investigated nor considered.
The reserve classifications conform to the definitions and criteria of the Securities and Exchange Commission. The reserves and economics are predicated on the regulatory agency classifications, rules, policies, laws, taxes and royalties in effect on the effective date except as noted herein. The possible effects of changes in legislation or other Federal or State restrictive actions which could affect the reserves and economics have not been considered. We are not aware of any legislative changes or restrictive actions that may possibly impact the reserves or economics as presented. Possible environmental liability related to the properties has not been investigated nor considered. The assumptions, data, methods and procedures as described are appropriate for the purpose of this report. All reserve estimates represent our best judgment based on data available at the time of preparation and assumptions as to future economic and regulatory conditions. Due to the inherent uncertainties of reserves estimates, future production rates, commodity prices, costs and expenses, it should be realized that the reserves actually recovered, the revenue received and the actual cost incurred could be more or less than the estimated amounts.
The reserves estimates were based on interpretations of factual data furnished by ZaZa Energy Corporation. Oil and gas prices, pricing differentials, expense and cost data, tax values, the subject wells and ownership interests were supplied by ZaZa Energy Corporation and were accepted as furnished. To some extent, information from public records has been used to check or supplement these data. The basic engineering and geological data were subject to third party reservations and qualifications. Nothing has come to our attention, however, that would cause us to believe that we are not justified in relying on such data. We have used all methods and procedures that we consider necessary under the circumstances to prepare this report.
Cawley, Gillespie & Associates, Inc. is independent with respect to ZaZa Energy Corporation as provided in the Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserve Information promulgated by the Society of Petroleum Engineers. Neither Cawley, Gillespie & Associates, Inc. nor any
ZaZa Energy Corporation Interests
June 30, 2015
Page 3
of its employees has any interest in the subject properties. Neither the employment to make this study nor the compensation is contingent on the results of our work or the future performance of the subject properties. Cawley, Gillespie and Associates, Inc. is a Texas registered engineering firm, F-693, of professional engineers and geologists serving the oil and gas industry for over fifty years.
This report was prepared for the use of ZaZa Energy Corporation. This letter should not be used, circulated or quoted for any other purpose without your express written consent and that of Cawley, Gillespie & Associates, Inc. or except as required by law. Our work papers and related data are available for inspection and review by authorized, interested parties.
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Respectively Submitted, |
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CAWLEY, GILLESPIE & ASSOCIATES, INC. |
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Texas Registered Engineering Firm F-693 |
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/s/ Cawley, Gillespie & Associates, Inc. |
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