27 May 2009capital raising announcement● NeutralMajor
On May 20, 2009 ReoStar agreed to buy 13,000 acres of the Hackberry Prospect (Lavaca and Colorado Counties, South Texas, within the Eagle Ford shale trend) from ZAZA Energy and Eli Smith for $5,500,000. It also agreed to issue 12,000,000 new shares to ZAZA plus $1,500,000 a year for three years in overhead payments, so existing holders would be diluted. Closing requires ReoStar to raise at least $15 million, and the agreements end if not closed by August 1, 2009.