ZaZa Energy Corp. and an affiliate of private equity firm Quantum Energy Partners has struck an East Texas joint venture (JV) agreement that includes acreage in Walker, Grimes, Madison, Trinity and Houston counties. ZaZa is to receive about $17 million, consisting of cash and a right to receive Quantum’s interest in the next 15 East Texas JV wells. ZaZa is to assign to Quantum 6,000 net acres in undeveloped leases within its East Texas JV and is to retain its interest in all existing wells and the right to participate with respect to Quantum’s working interest in reserved wells. Following the assignment, ZaZa will have about 30,000 net acres in its East Texas JV and about 10,000 net acres in its East Texas focus area. Closing is subject to the approval of ZaZa’s existing East Texas JV partner. “ZaZa has been meeting with Quantum for more than a year to lay the groundwork for this new relationship,” said CEO Todd Brooks. “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.”
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