ZaZa closes Hess transaction in Paris basin
HOUSTON -- ZaZa Energy Corp. announced that it recently received initial approval from the French government regarding the terms of ZaZa’s transaction with Hess Corp., announced June 11, 2012. This initial approval enabled the Parties to complete the termination of their 2010 agreements on October 1, 2012. As part of the transaction, ZaZa’s working interest in the Parties’ Paris Basin exploration licenses has now been converted into a 5% overriding royalty interest capped at $130 million.
Todd A. Brooks, President and Chief Executive Officer, said, “We are pleased to receive initial approval from the French government for the transaction, which provides ZaZa with attractive royalty rights to a resource play with significant potential. The Company has made significant strides in narrowing our exploration focus to our prolific Eagle Ford and Eaglebine assets in Southern Texas and we look forward to creating value for shareholders.”