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.
About the Author
Paula Dittrick
Senior Staff Writer
Paula Dittrick has covered oil and gas from Houston for more than 20 years. Starting in May 2007, she developed a health, safety, and environment beat for Oil & Gas Journal. Dittrick is familiar with the industry’s financial aspects. She also monitors issues associated with carbon sequestration and renewable energy.
Dittrick joined OGJ in February 2001. Previously, she worked for Dow Jones and United Press International. She began writing about oil and gas as UPI’s West Texas bureau chief during the 1980s. She earned a Bachelor’s of Science degree in journalism from the University of Nebraska in 1974.