ZaZa Energy (ZAZA) Completes $85.8M Sale of French Assets
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ZaZa Energy Corporation (NASDAQ: ZAZA) today disclosed that it completed the sale of its French assets, comprising 100% of the shares of ZaZa Energy France SAS (“ZEF”), to Vermilion REP SAS, a wholly-owned subsidiary of Vermilion Energy Inc., for a gross purchase price of $85.8 million.
Taking into consideration customary closing adjustments and contractually obligated asset integrity and G&A contributions, the net purchase price paid to ZaZa was ~US$76 million. Resulting acquisition metrics reflect a cash valuation of ~US$90,000 per Bbl/d and ~US$13.64 per boe of proved reserves.
ZaZa applied half of the net proceeds from the disposition to pay down a substantial part of its remaining senior secured notes. As part of the Paris Basin Purchase and Sale Agreement signed with Hess in July 2012, $15.0 million of the proceeds will be held in escrow until title to all Paris Basin exploration permits have been successfully transferred to Hess. The title transfer process is underway and is expected to be completed in 2013. The remaining proceeds will be used to fund ZaZa’s development program.
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Taking into consideration customary closing adjustments and contractually obligated asset integrity and G&A contributions, the net purchase price paid to ZaZa was ~US$76 million. Resulting acquisition metrics reflect a cash valuation of ~US$90,000 per Bbl/d and ~US$13.64 per boe of proved reserves.
ZaZa applied half of the net proceeds from the disposition to pay down a substantial part of its remaining senior secured notes. As part of the Paris Basin Purchase and Sale Agreement signed with Hess in July 2012, $15.0 million of the proceeds will be held in escrow until title to all Paris Basin exploration permits have been successfully transferred to Hess. The title transfer process is underway and is expected to be completed in 2013. The remaining proceeds will be used to fund ZaZa’s development program.
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