Plans to sell its remaining Mouton properties.
ZaZa Energy Corp. (NYSE: ZAZA) plans to sell the remainder of its Moulton properties for about $9.2 million to an undisclosed buyer.
This transaction is expected to close during the second quarter of 2013 and is subject to normal closing conditions.
ZaZa will also sell its Moulton assets, which include the company’s interest in seven producing wells in Fayette, Gonzalez and Lavaca counties, Texas for about $43.3 million.
Todd A. Brooks, president and chief executive of ZaZa stated, "As part of the Hess division of assets in 2012, we received cash and a significant amount of acreage in the Eagle Ford play. We are in the process of monetizing select assets in order to improve our balance sheet and high grade our resource base with a focus on the Eaglebine.”
“We believe these independent transactions are a testament to the strength of our technical and land teams, as we originally evaluated and leased this acreage in a short period of time for the benefit of our Eagle Ford joint venture," Brooks said.
ZaZa intends to use the proceeds to fund a portion of capital expenditures for exploration on its other properties and further reduce the principal amount of its senior secured notes.