ZaZa Energy Reports 2012 Year-End Results and Provides Operational Updates

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• Joint Venture in the Eaglebine in 1Q13 provides company with increased financial flexibility and alliance with proven, best-in-class operator

HOUSTON–(BUSINESS WIRE)– ZaZa Energy Corporation (“the Company” or “ZaZa”) (NAS: ZAZA) today announced operational and financial results for the year ended December 31, 2012.

Results of operations include the results of the Company’s accounting predecessor, ZaZa LLC, from January 1, 2012 through February 20, 2012, and all of the Company’s subsidiaries, since February 21, 2012, excluding ZaZa Energy France (“ZEF”), which was sold on December 21, 2012 and is presented as discontinued operations.

Full Year 2012 Results

For the year ended December 31, 2012, ZaZa reported revenues and other income from continuing operations of $205.2 million, as compared to $17.6 million reported for the year ended December 31, 2011. Included in 2012 revenues and other income is $195.6 million related to the gain on termination of the Hess Agreements. This gain consisted of a step up of oil and gas property to fair value of $117.0 million, a write-off of $5.4 million in working capital and a cash payment by Hess to ZaZa in the amount of $84.0 million.

The Company reported oil and gas revenue for the year of $9.6 million, up from $2.5 million for the year ended December 31, 2011. The increase in oil and gas revenue is primarily a result of the termination agreements with Hess. An overall rise in oil prices also contributed to this increase.

Operating costs and expenses for the year ended December 31, 2012 were $130.9 million as compared …read more
Source: FULL ARTICLE at DailyFinance