A subsidiary of Vermilion Energy Inc. of Calgary agreed to buy ZaZa Energy Corp.’s French assets for $85.5 million in a transaction expected to close by Dec. 31, subject to customary closing conditions.
ZaZa Energy of Houston said it signed a definitive share purchase agreement by which Vermilion REP SAS will acquire 100% of ZaZa Energy France SAS.
The assets being sold involve operating interests covering 24,300 acres and a 100% working interest in the Neocomian complex and Charmottes fields in the Paris basin.
“This divestiture falls directly in line with ZaZa’s strategic objective to focus on further developing our core operating acreage in Texas,” said Todd A. Brooks, ZaZa Energy chief executive officer.
ZaZa will use proceeds from the sale to reduce debt and to finance drilling in the Eaglebine and Eagle Ford plays, both in Texas.
Additionally, as part of a Paris basin agreement previously signed with Hess Corp., ZaZa will hold $15 million in escrow pending completion of the terms of the ZaZa-Hess agreement.
ZaZa Energy terminated its exploration and development agreements with Hess in the Eagle Ford shale in South Texas and the Paris basin in France (OGJ Online, June 11, 2012).