Houston-based ZaZa Energy LLC has struck a deal to sell about 10,300 acres in Fayette, Gonzalez and Lavaca counties in Texas for about $28.8 million to a unit of Sanchez Energy after a deal fell through with another buyer that was unable to fund and close a transaction, parent ZaZa Energy Corp. said. ZaZa calls the acreage its Moulton properties. In March, ZaZa announced two pending Moulton sales: one for $43.3 million for 10,000 acres and another for the remainder of its Moulton properties for $9.2 million (see Shale Daily, March 26). “Given the current landscape, we believe that transacting at this metric was the best and most prudent action for the company at this time,” ZaZa CEO Todd Brooks said of the latest deal. “We remain focused on monetizing select Eagle Ford assets in order to improve our balance sheet, and we are currently pursuing other joint ventures in the area. In the Eaglebine, our joint venture is progressing as planned, and we anticipate timely drilling of the first three wells as part of the agreement [see Shale Daily, April 8].” ZaZa has received a down payment of $1.4 million for the Moulton properties; closing of the sale is expected by July 31.
Articles from Lavaca
Enterprise Products Partners LP has started operation of the second 300 MMcf/d train at its Yoakum cryogenic gas processing plant in Lavaca County, TX. The facility handles production from the Eagle Ford Shale in South Texas.
Copano Energy LLC said it has struck long-term contracts with several Eagle Ford Shale producers, including Abraxas Petroleum Corp., Paloma Resources, Petrohawk Energy Corp., Pioneer Natural Resources, Reliance Eagleford Upstream Holding LP, Newpek LLC and Riley Exploration. It has also expanded its contract with GeoSouthern Resources to include a larger acreage dedication. Copano will provide gathering, compression, processing and fractionation services for the producers in portions of DeWitt, Karnes and Live Oak counties, TX, under the contracts, which are primarily fee-based. Copano has secured firm producer commitments for aggregate production of up to 120,000 MMBtu/d and additional commitments for production from approximately 135,000 gross acres in the Eagle Ford. Copano also said it will extend its DK Pipeline by 58 miles through Lavaca County, TX, to connect with the DK Pipeline system into its Houston Central Complex.
Florida Gas Transmission said Friday it is performing unscheduled maintenance on one of the two units at Compressor Station #3 in Port Lavaca, TX. The outage is expected to last through Sept. 15. During this work FGT will schedule up to about 160,000 MMBtu/d through the station. During normal operations it schedules up to 230,000 MMBtu/d. The reduction took effect Saturday.
Southern Mineral Corp. of Houston sold its interests in theBrushy Creek Field in Lavaca and Dewitt counties of Texas to ANRProduction Co. for $15.2 million. Closing on the Texan Gardensfield has been extended for up to 30 days. The company earmarkedmost of the proceeds for cutting bank debt. Southern Mineral is anoil and gas acquisition, exploration and production company thatowns interests in oil and gas properties along the Texas GulfCoast, Canada and Ecuador. The company’s principal assets includeinterests in the Big Escambia Creek field in Alabama and the PineCreek field in Alberta, Canada. The company is listed on the NasdaqNational Market under the symbol SMIN.