ZaZa
Energy , ZAZA, Profile, Summary
ZaZa
Energy Overview
CONSOLIDATING
A DOMINANT POSITION IN THE EAGLEBINE
High
concentration of liquid‐rich assets in the Eaglebine and Eagle
Ford trends
~110,000
acre presence within the Eaglebine and Lower Cretaceous window
7,600
acres surrounded by Devon’s recently acquired $6 billion
GeoSouthern Eagle Ford assets
Completed
amendment to Eaglebine/Eagle Ford East joint venture agreement with
large independent operator
Accelerated
timing
Contiguous
JV acreage footprint
Immediate
liquidity (~$17.8MM net cash) and production (~$17MM in PDP value)
6
well carry program
Proven
management team
Significant
experience with majors and large independents
Collectively
participated in the drilling and completion of over 5,500 wells
UNCONVENTIONAL
ASSETS – POST CONVENTIONAL THINKING
Technical
evaluation of the juncture between the organic‐ and carbonaterich
Eagle Ford group and the silica‐rich Woodbine plays provided an
operational thesis to make the Eaglebine an area of primary focus
Analogous
to mature Eagle Ford area
Large
potential resource play with stacked pay
Oil/liquids
rich in multiple zones
Multiple
zones act as an acreage multiplier
Significant
successful offset activity
MILESTONES
- POSITIONED FOR RAPID VALUE CREATION-
˃
Secured
a first mover advantage in the Eaglebine/Eagle Ford East play
˃
Consummated joint
venture agreement with a large independent operator to develop
Eaglebine/Eagle Ford East acreage
˃
Accelerated original
joint venture agreement through an amendment to acquire additional
production and further develop our acreage block
˃
Entered joint venture
agreement with Sabine Oil & Gas LLC, a First Reserve portfolio
company, to develop Sweet Home Eagle Ford acreage
˃
Strategically completed
sale of non‐core Moulton Eagle Ford assets for approximately $38
million
˃
Reduced senior secured
notes to $26.8 million from $100 million
˃
Drilled and completed 4
proof‐of‐concept wells during 2013
EAGLE
FORD SHALE PROPERTIES
JOIN
VENTURE
Sabine
Oil & Gas LLC (“Sabine”) and ZaZa entered into a 75/25 joint
venture for the development of ZaZa’s Sweet Home prospect in the
Eagle Ford trend located in the liquids window of De Witt and Lavaca
Counties, Texas
Sabine carries ZaZa for two
commitment wells and up to $750,000 of construction costs related to
gathering and infrastructure in exchange for a 75% interest in 7,600
net acres and the Boening well. Sabine also carries up to
$300,000
of ZaZa’s expenses related to the extension and renewal of certain
leases
>>
If Sabine completes the first commitment well by February 15, 2014,
ZaZa will transfer to Sabine a 75% interest in approximately 3,200
net acres and the Boening well
>>
If Sabine completes the second commitment well by April 15, 2014,
ZaZa will transfer to Sabine a 75% interest in the remaining net
acres (4,400)
•
Assuming the initial two
commitment wells are successful in achieving production,
participating interests in any additional wells drilled or lease
acreage
acquired in the Sweet Home prospect will be shared 75% by Sabine and
25% by ZaZa under an Area of Mutual Interest (“AMI”) that will
expire
on
September 15, 2015
SWEET
HOMEPROSPECT
+200’ thick Eagle Ford
pay section with >8% porosity in
thickest
portion of organic shale
Adjacent to and surrounded
by Devon’s recently acquired $6 billion GeoSouthern Eagle Ford
assets
>>
Visible oil growth in low‐risk, repeatable play
ZaZa’s
Boening well began with an initial production rate of 669 Boe/d
PROVEN
BUSINESS MODEL
Initial
Appraisal
•
Regional geologic
evaluation
•
Depositional model,
subsurface analysis, 3D seismic
•
Hydrocarbon system,
maturity, geochemistry
•
Begin building subsurface
model
•
In‐depth data analysis
•
Analyze all area logs and
rasters
•
Analyze all nearby core
data if available
•
Maturity/TOC/XRD, mineral
composition, fracability
•
Detailed log correlations
and custom petrophysics
Proof
of Concept
•
Drill pilot well, take
full suite of logs and core
•
Mud logging,
ISO‐analysis, in‐situ fluid composition
•
Open‐hole logging (rock
properties, matrix mineralogy, clay
type,
hydrocarbon saturation, stress analysis, rock mechanics)
•
Core analysis
•
Maturity/TOC/XRD, mineral
composition, fracability
•
Core calibrated to
petrophysics
•
Integration
•
Detailed pilot to lateral
rock properties calibration
•
Custom frac design and
execution
•
Microseismic monitoring
and tracer analysis
Capital
Markets Access
•
Strengthening balance
sheet
•
Optimizing capital
structure for growth
• Transact
to accelerate cash flow
Proven
Management Team
Todd
Brooks (Founder, Executive Director, President &
CEO)
Founded ZaZa Energy, LLC in
2009. Led company into multiple scaled drilling and development JVs
in the Eagle Ford and Eaglebine. Took ZaZa public via reverse merger
in early 2012
Principal of Neuhaus Brooks
Investments of Texas, LLC, a company making strategic energy
investments across multiple geographic regions
Experienced land man, E&P
investor and entrepreneur
B.A. in Economics from
Vanderbilt University; J.D. from South Texas College of Law
Ian
Fay (CFO)
Founding Partner at Odin
Advisors LLC
Served as Head of the Energy
& Natural Resources Group | Americas at BNP Paribas
Worked as Managing Director
for RBC Capital Markets and Director of M&A for UBS Investment
Bank
B.A. in English from the
University of North Carolina at Chapel Hill and Morehead‐Cain
scholar
Kevin
Schepel (EVP Exploration and Production)
Executive Vice President of
Exploration and Production since June 2010
Served as Vice President of
Worldwide Exploitation for Pioneer Natural Resources, Chief
Petrophysicist for BHP Petroleum and 15 years as an advanced
Geoscientist at Exxon
B.S. from Michigan State
University; Licensed by the Texas Board of Professional Geoscientists
Thomas
Bowman (EVP
Evaluation, Geology and Geophysics)
Served in various roles such
as Evaluation Manager and Exploration Advisor at Aspect Abundant
Shale, Bass Enterprises, Fina Oil and Chemical and Tenneco Oil Co.
Industry‐recognized
specialist in identification of resource plays and the utilization of
geophysical advancements; involved in the completion of over 1,000
horizontal resource wells across a majority of US shale plays
B.S. from Montana College of
Mineral Science and Technology; Licensed by the Texas Board of
Professional Geoscientists
The
Advantage
Light
Louisiana Sweet crude pricing offers premium relative to
WTI
(~$4.50 per Bbl)
Gas
prices benefit from favorable BTU/GPM content and proximity to
Houston‐area markets
Quality
infrastructure in place with available takeaway capacity
Approach
•
Identify trends early /
first mover
•
Low entry cost
•
Large contiguous acreage
blocks
•
Concentrated area focus
•
High‐value partnerships
•
Oil‐weighted properties
•
Latest technology
Results
2014
Catalysts
•
Viable
exploration wells
•
Eaglebine
development moving forward
•
Secure
“regularway” financings
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