ZaZa Energy Announces McAdams Well 30-Day Initial Production Results Company Working Through Term Sheets For New Reserve Based Debt Facility

ZaZa Energy Corporation (“ZaZa” or the “Company”) 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.