ZaZa Energy Announces ~$17M East Texas JV Agreements With Large Private Equity Firm

ZaZa Energy Corporation (“ZaZa” or the “Company”) ZAZA today announced that ZaZa Energy Corporation (“ZaZa”) and an affiliate of Quantum Energy Partners (“Quantum”) entered into a Purchase and Sale Agreement, which includes an East Texas Development Agreement comprising Walker, Grimes, Madison, Trinity, and Houston counties (collectively, the “Quantum Agreements”). Pursuant to the terms of the Quantum Agreements: ZaZa will receive ~$17 million of total consideration, consisting of both cash and ZaZa's right to receive Quantum's interest in the next 15 East Texas JV wells between the closing of the Quantum transaction and its second anniversary (the “Reserved Wells”). ZaZa will assign to Quantum 6,000 net acres in undeveloped leases within ZaZa's East Texas JV. ZaZa retains its interest in all existing wells and the right to participate with respect to Quantum's working interest in the Reserved Wells. Following this assignment, ZaZa will have ~30,000 net acres in its East Texas JV and ~10,000 net acres in its East Texas focus area. ZaZa will receive ongoing G&A and cost reimbursements from Quantum for providing services related to their jointly owned assets in Walker, Grimes, Madison, Trinity, and Houston counties. President and CEO Todd A. Brooks stated, “We are delighted to partner with Quantum, a world class private equity firm with an outstanding track record of investing in entrepreneurial management teams like ours. ZaZa has been meeting with Quantum for more than a year to lay the groundwork for this new relationship. Throughout that time, Quantum has watched as ZaZa advanced its East Texas drilling program. Our new partnership validates the progress ZaZa has made, and we look forward to working with Quantum as we move forward with our East Texas acquisition and development plans.” The closing of the Quantum transaction is subject to receiving the approval of ZaZa's existing East Texas JV partner and other customary closing conditions. There can be no assurance that all of the closing conditions will be satisfied.