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ZaZa Energy , ZAZA, Profile, Summary

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ZaZa Energy , ZAZA

 

Profile, Summary

 

 

 

 

ZaZa Energy Overview

 

CONSOLIDATING A DOMINANT POSITION

 

IN THE EAGLEBINE

 

yes High concentration of liquid?rich assets in the Eaglebine and Eagle Ford trends

yes ~110,000 acre presence within the Eaglebine and Lower Cretaceous window

yes7,600 acres surrounded by Devon’s recently acquired $6 billion GeoSouthern Eagle Ford assets

yes Completed amendment to Eaglebine/Eagle Ford East joint venture agreement with large independent operator

yesAccelerated timing

yesContiguous JV acreage footprint

yesImmediate liquidity (~$17.8MM net cash) and production (~$17MM in PDP value)

yes6 well carry program

yes Proven management team

yesSignificant experience with majors and large independents

yes Collectively participated in the drilling and completion of over 5,500 wells

 

 

UNCONVENTIONAL ASSETS – POST CONVENTIONAL THINKING

 

Technical evaluation of the juncture between the organic? and carbonaterich Eagle Ford group and the silica?rich Woodbine plays provided an operational thesis to make the Eaglebine an area of primary focus

Analogous to mature Eagle Ford area

Large potential resource play with stacked pay

Oil/liquids rich in multiple zones

 Multiple zones act as an acreage multiplier

Significant successful offset activity

 

MILESTONES - POSITIONED FOR RAPID VALUE CREATION-

 

Secured a first mover advantage in the Eaglebine/Eagle Ford East play

 Consummated joint venture agreement with a large independent operator to develop Eaglebine/Eagle Ford East acreage

 Accelerated original joint venture agreement through an amendment to acquire additional production and further develop our acreage block

 Entered joint venture agreement with Sabine Oil & Gas LLC, a First Reserve portfolio company, to develop Sweet Home Eagle Ford acreage

 Strategically completed sale of non?core Moulton Eagle Ford assets for approximately $38 million

Reduced senior secured notes to $26.8 million from $100 million

Drilled and completed 4 proof?of?concept wells during 2013

 

EAGLE FORD SHALE PROPERTIES

 

JOIN VENTURE

 

>Sabine Oil & Gas LLC (“Sabine”) and ZaZa entered into a 75/25 joint venture for the development of ZaZa’s Sweet Home prospect in the Eagle Ford trend located in the liquids window of De Witt and Lavaca Counties, Texas

Sabine carries ZaZa for two commitment wells and up to $750,000 of construction costs related to gathering and infrastructure in exchange for a 75% interest in 7,600 net acres and the Boening well. Sabine also carries up to

$300,000 of ZaZa’s expenses related to the extension and renewal of certain leases

>> If Sabine completes the first commitment well by February 15, 2014, ZaZa will transfer to Sabine a 75% interest in approximately 3,200 net acres and the Boening well

>> If Sabine completes the second commitment well by April 15, 2014, ZaZa will transfer to Sabine a 75% interest in the remaining net acres (4,400)

Assuming the initial two commitment wells are successful in achieving production, participating interests in any additional wells drilled or lease

acreage acquired in the Sweet Home prospect will be shared 75% by Sabine and 25% by ZaZa under an Area of Mutual Interest (“AMI”) that will expire

on September 15, 2015

 

SWEET HOMEPROSPECT

 

+200’ thick Eagle Ford pay section with >8% porosity in

thickest portion of organic shale

Adjacent to and surrounded by Devon’s recently acquired $6 billion GeoSouthern Eagle Ford assets

>> Visible oil growth in low?risk, repeatable play

ZaZa’s Boening well began with an initial production rate of 669 Boe/d

 

PROVEN BUSINESS MODEL

 

 

Initial Appraisal

 

Regional geologic evaluation

Depositional model, subsurface analysis, 3D seismic

Hydrocarbon system, maturity, geochemistry

Begin building subsurface model

In?depth data analysis

Analyze all area logs and rasters

Analyze all nearby core data if available

Maturity/TOC/XRD, mineral composition, fracability

Detailed log correlations and custom petrophysics

 

Proof of Concept

 

Drill pilot well, take full suite of logs and core

Mud logging, ISO?analysis, in?situ fluid composition

Open?hole logging (rock properties, matrix mineralogy, clay

type, hydrocarbon saturation, stress analysis, rock mechanics)

Core analysis

Maturity/TOC/XRD, mineral composition, fracability

Core calibrated to petrophysics

Integration

Detailed pilot to lateral rock properties calibration

Custom frac design and execution

Microseismic monitoring and tracer analysis

 

Capital Markets Access

 

Strengthening balance sheet

Optimizing capital structure for growth

Transact to accelerate cash flow

 

 

Proven Management Team

 

Todd Brooks (Founder, Executive Director, President &

CEO)

Founded ZaZa Energy, LLC in 2009. Led company into multiple scaled drilling and development JVs in the Eagle Ford and Eaglebine. Took ZaZa public via reverse merger in early 2012

Principal of Neuhaus Brooks Investments of Texas, LLC, a company making strategic energy investments across multiple geographic regions

Experienced land man, E&P investor and entrepreneur

B.A. in Economics from Vanderbilt University; J.D. from South Texas College of Law

 

Ian Fay (CFO)

 

Founding Partner at Odin Advisors LLC

Served as Head of the Energy & Natural Resources Group | Americas at BNP Paribas

Worked as Managing Director for RBC Capital Markets and Director of M&A for UBS Investment Bank

B.A. in English from the University of North Carolina at Chapel Hill and Morehead?Cain scholar

 

Kevin Schepel (EVP Exploration and Production)

 

Executive Vice President of Exploration and Production since June 2010

Served as Vice President of Worldwide Exploitation for Pioneer Natural Resources, Chief Petrophysicist for BHP Petroleum and 15 years as an advanced Geoscientist at Exxon

B.S. from Michigan State University; Licensed by the Texas Board of Professional Geoscientists

 

Thomas Bowman (EVP Evaluation, Geology and Geophysics)

 

> Served in various roles such as Evaluation Manager and Exploration Advisor at Aspect Abundant Shale, Bass Enterprises, Fina Oil and Chemical and Tenneco Oil Co.

Industry?recognized specialist in identification of resource plays and the utilization of geophysical advancements; involved in the completion of over 1,000 horizontal resource wells across a majority of US shale plays

B.S. from Montana College of Mineral Science and Technology; Licensed by the Texas Board of Professional Geoscientists

 

The Advantage

Light Louisiana Sweet crude pricing offers premium relative to

WTI (~$4.50 per Bbl)

Gas prices benefit from favorable BTU/GPM content and proximity to Houston?area markets

Quality infrastructure in place with available takeaway capacity

 

Approach

 

Identify trends early / first mover

Low entry cost

Large contiguous acreage blocks

Concentrated area focus

High?value partnerships

Oil?weighted properties

Latest technology

 

Results

 

2014 Catalysts

Viable exploration wells

Eaglebine development moving forward

Secure “regularway” financings

 

Sources: The Company, OxBridge Research, OTCKING, DailyStockDeals, OTCstockIQ

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Last Updated - Saturday, 31 January 2015
 
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