The pending merger of Toreador Resources Corp. and ZaZa Energy LLC will result in a combined company operating in the South Texas Eagle Ford play and the Paris basin in France.
The transaction, which remains subject to regulatory approvals and approval by Toreador shareholders, is scheduled to close during the fourth quarter.
The companies announced the merger Aug. 9, and executives discussed it during an oil and gas investors conference in Denver Aug. 15.
Based on the Aug. 9 Toreador stock price, the implied market capitalization for the combined company is $294 million.
ZaZa, a privately owned Houston company, will hold 75% of the combined company, ZaZa Energy Corp. Craig McKenzie, Toreador president and chief executive officer, will hold those positions in ZaZa Energy Corp., based in Houston.
ZaZa holds 123,000 gross acres in the Eagle Ford where it plans to drill 280 wells by 2013. In the Eagle Ford-Woodbine area, leasing is under way to expand 70,000 gross acres to more than 100,000 gross acres within 12 months.
Toreador holds 780,000 gross acres in the Paris basin.