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ZAZA > SEC Filings for ZAZA > Form 8-K on 21-Oct-2013All Recent SEC Filings

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Form 8-K for ZAZA ENERGY CORP


21-Oct-2013

Entry into a Material Definitive Agreement, Regulation FD Disclosure, Financial


Item 1.01 Entry into a Material Definitive Agreement.

On October 15, 2013, ZaZa Energy Corporation ("ZaZa") entered into a Third Amendment and Second Restatement of Joint Exploration and Development Agreement (the "Amended JEDA") with EOG Resources, Inc. (our "counterparty"), for the joint development of certain of our Eaglebine/Eagle Ford East properties located in Walker, Grimes, Madison, Trinity, and Montgomery Counties, Texas. Under this agreement, we and our counterparty are continuing to jointly develop acreage that the two companies own in these counties, which commenced with the parties' original Joint Exploration and Development Agreement effective on March 1, 2013.

The joint development under the Amended JEDA is divided into three phases, the first of which has already been substantially completed under the terms of the original Joint Exploration and Development Agreement. The transaction also closed on October 15, 2013.

PHASE II ACCELERATION

Our counterparty has elected to commence Phase II of the Amended JEDA, and ZaZa has assigned to our counterparty approximately 20,000 net acres for (i) cash consideration of $17 million and (ii) approximately $3 million of interests in 15 producing wells of our counterparty located outside of the parties' Area of Mutual Interest or "AMI" (as defined in the Amended JEDA). During Phase II, our counterparty will drill two horizontal wells and one vertical well in the parties' AMI, carry ZaZa's interests in those wells and provide a miscellaneous work and land carry of up to $1.25 million. Our counterparty may, however, elect to drill one or more vertical wells in order to achieve carry parity value of drilling horizontal wells. To complete its former obligation in respect of the third well under Phase I of the Amended JEDA, our counterparty will pay for an additional $1.5 million of ZaZa's costs for one or more additional vertical wells and has provided a further $1.5 million cash payment to ZaZa.

PHASE III ACCELERATION

Under the Amended JEDA, ZaZa has assigned at closing approximately 7,800 net acres from the former Phase III acreage, for which ZaZa will receive an equivalent value of production, or approximately $11 million from interests in the 15 producing wells of our counterparty referenced above. In addition, our counterparty has the option, until January 31, 2014, to acquire an interest in the remaining approximate 12,300 former Phase III acres at a fixed price per net acre from ZaZa.

EXCHANGE OF LEASES AND WELLS

Our counterparty has acquired approximately 19,000 additional net acres and interests in related wells in the parties' Area of Mutual Interest, and has assigned to ZaZa a 25 percent working interest in these leases and wells. In consideration for ZaZa's participation in our counterparty's leases and producing wells, ZaZa assigned to our counterparty approximately 13,875 additional net acres and paid approximately $700,000 of cash.




Item 7.01. Regulation FD Disclosure

On October 21, 2013, the Company issued a press release announcing its entry into the Amended JEDA. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, the information in this
Section 7.01 shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing.



Item 9.01 Financial Statements and Exhibits

Exhibit No. Description

99.1 Press Release dated October 21, 2013


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