ZaZa Energy Announces Production Results From Three East Texas Vertical Wells

ZaZa Energy Corporation (“ZaZa” or the “Company”) recently announced the one-year production results (October 1, 2013 to September 30, 2014) from three of its East Texas vertical wells in Madison and Walker counties, Texas:

• Toby #1 (“Toby”). During 336 producing days, average three-stream production for the Toby well was approximately 539 boe/d, consisting of about 230 b/d of liquids and 1,853 mcf/d of natural gas (cumulative one-year production of ~181,069 boe).
• Grisham #1 (“Grisham”). During 358 producing days, average three-stream production for the Grisham well was approximately 533 boe/d, consisting of about 456 b/d of liquids and 460 mcf/d of natural gas (cumulative one-year production of ~190,720 boe).
• Laura Unit #1 (“Laura”). During 356 producing days, average three-stream production for the Laura well was approximately 382 boe/d, consisting of about 293 b/d of liquids and 532 mcf/d of natural gas (cumulative one-year production of ~135,911 boe).

ZaZa holds a 25% working interest in the Toby well and a 29.38% working interest in each of the Grisham and Laura wells.

President and CEO Todd A. Brooks stated, “The one-year performance of these three vertical wells illustrates how ZaZa’s East Texas acreage can be developed using two alternative approaches: horizontal or vertical wells. The horizontal approach is exemplified by the results of two recent wells in southern Madison and northern Walker counties: (i) ZaZa’s McAdams Cattle Company #1H (929 boe/d IP-30) and (ii) nearby offset Vick B Unit #1H (2,311 boe/d IP-30). The vertical approach has been confirmed by the Toby, Grisham, and Laura well results.”

ZaZa’s internal models indicate similarly strong economics of greater than 50% IRR for both horizontal and vertical wells, assuming horizontal well costs of ~$9.5 mm, vertical well costs of ~$4.5 mm, ~$80 oil, and ~$3.70 per mmbtu gas.

With respect to its horizontal program, the Company is expecting completion procedures to be underway by the end of the month for the Josey Wales #1H, which targets a formation similar to the McAdams #1H, and is currently drilling the lateral portion of the Colburn #3H, which will be ZaZa’s first horizontal test of a deeper, known productive formation.

About ZaZa Energy Corporation
Headquartered in Houston, Texas, ZaZa Energy Corporation is a publicly-traded exploration and production company with primary assets in the Eagle Ford and Eagle Ford East resource plays in Texas. For more information, visit www.zazaenergy.com.