Each one in plain English, with the numbers worked through for a shareholder.
20 Mar 2014material agreement▲ GoodMajor
The March 7 EOG Phase III amendment closed on March 18, 2014, with ZaZa receiving about $4.7M cash and the carry of up to about $9.2M. Separately, on March 14 holders of the senior secured notes (now $15M, plus warrants for 27,433,244 shares) agreed to Amendment No. 6, extending to the 2013 financial statements the same relief from going-concern requirements already given for 2012. This completes the EOG Phase III thread and keeps the senior note terms workable.
12 Mar 2014material agreement termination▲ GoodMajor
On March 7, 2014 ZaZa amended its EOG joint venture to assign about 9,600 net acres (a 75% interest in its remaining Phase III acreage) to EOG for about $4.7M cash plus a carry of up to about $9.2M of future drilling and completion costs. EOG also committed to drill two more test wells, the first starting by July 1, 2014. The Range participation agreement was terminated, with Range's rights having passed to EOG. This resolves the open question of whether EOG would elect into the remaining ~12,300 Phase III acres, and the press release says ZaZa also received $1.1M from its partner related to the Range agreement.
26 Feb 2014capital raising announcement● NeutralMajor
On February 24, 2014 ZaZa agreed to swap the $47.3M of subordinated notes held by its three founders (CEO Brooks, and directors Hearn and Kearby, via their entities) into about 9.48M new common shares (valued at $0.9495 each) and new 13% preferred stock with a $37.4M total liquidation preference. The swap closes only once the remaining $15.0M of senior secured notes is repaid in full, and the company says it plans to fund that from a notes offering that was not yet effective. This continues the debt-reduction thread after the February Hess settlement; the company says pro forma total debt would be about $55M, down from $113.6M at Dec 31, 2013. It would dilute existing common holders and adds preferred stock ranking ahead of them (the latter is an inference). A special committee of independent directors approved it.
On February 6, 2014 ZaZa settled with Hess over the old joint ventures. The $15.0M escrow held since 2012 was released: about $11.5M to ZaZa and about $3.5M to Hess. Hess gave up its right to proceeds from ZaZa's litigation over certain Texas leases, and the Paris Basin overriding royalty interests were terminated. ZaZa used the $11.5M plus about $1.1M of its own cash to prepay the 8% senior secured notes, cutting them from $26.8M to $15.0M principal, and says all required early paydowns are now done. The prepayment includes about $850,000 of accrued interest and premium. This closes the escrow release thread and leaves a smaller senior secured balance.
Encompass Capital Advisors LLC, Encompass Capital Master Fund L.P, Todd J. Kantor reported no remaining ZaZa Energy Corp shareholding in its periodic institutional filing.
The amended EOG deal announced in September closed on October 15, 2013, with some terms changed. ZaZa assigned about 20,000 net Phase II acres and about 7,800 former Phase III acres (rather than the 6,000 minimum first announced). It received $17M cash for Phase II, a further $1.5M cash payment, and interests in 15 EOG producing wells. In the acreage swap it paid about $700,000, down from the roughly $2M first stated. The company's release says it received $17.8M net cash, interests in 23 wells with about $17M of PDP value per an independent report, and a 25% interest in about 19,000 acres. About 12,300 Phase III acres remain, which EOG can elect into by January 31, 2014.
Todd Alan Brooks, John E. Hearn, Jr, Gaston L. Kearby reported a ZaZa Energy Corp shareholding of 65,322,888 shares (60.90% of votes) in a periodic institutional filing.
On September 25, 2013 ZaZa signed an amended agreement with EOG Resources that speeds up the joint venture phases it agreed in March. EOG moves into Phase II early: ZaZa assigns 20,000 net acres for $17M cash plus about $3M of interests in EOG's producing wells, and a further $1.5M cash payment. ZaZa also assigns at least 6,000 former Phase III acres for about $9M of production interests, and swaps acreage with EOG (ZaZa gets 25% of about 19,000 acres, gives up about 13,875 acres and pays about $2M). The company's release puts net cash at $16.5M. This continues the EOG JV thread, and the deal had not closed as of this filing.
CEO Todd Brooks agreed on August 21, 2013 to buy 1,500,000 new shares directly from the company at $0.92 each (the closing bid that day), for $1,380,000. The company says it will use the money to acquire oil and gas properties, and the release says specifically more acreage in the Eaglebine/Eagle Ford East area. It adds a small number of new shares, so existing holders are slightly diluted.
31 July 2013asset acquisition disposition▲ GoodMajor
The Moulton sale to SN Marquis (a Sanchez Energy subsidiary) closed on July 26, 2013: about 10,300 net acres and seven producing wells, for about $28.8M, with $29.3M in cash received. The filing also says the earlier ~$9.2M sale to the same buyer closed on April 5, 2013 with $8.8M received, which settles the open question about the remaining-acreage sale. The company's release says it intends to use part of the proceeds to cut debt as its debt agreements require.
2 July 2013material agreement termination▼ BadMajor
ZaZa ended the March BEP Moulton sale (about $43.3M) on June 27, 2013 because it had not closed by the outside date; the company's release says the buyer could not fund and close. It signed a new deal with SN Marquis, LLC (a Sanchez Energy subsidiary) to sell about 10,300 net Moulton acres with seven producing wells for about $28.8M, a deposit of about $1.4M received, closing expected by July 31, 2013. That is roughly $14.5M less than the failed deal's price, though the acreage covered differs slightly. The earlier plan to sell the remaining Moulton acreage for about $9.2M is not mentioned here.
ZaZa Energy Corp shareholders approved the routine matters put to a vote at the company's annual meeting (director elections, auditor ratification, and the executive-pay advisory vote).
