Pursuant to the terms of the Agreement, ZaZa received a total of $17.8 MM net cash plus production interests in 23 wells with a PDP present value of approximately $17 MM based on an independent reserves report.

In addition, the Company received a 25% working interest in approximately 19,000 net additional Eaglebine/Eagle Ford East acres, while retaining approximately 12,300 net wholly-owned acres in Phase III under the original agreement.

This transaction brings the joint venture’s current total land position to approximately 110,000 net acres.

TRANSACTION HIGHLIGHTS

-Acceleration of Phase II. ZaZa’s joint venture partner has elected into Phase II ahead of the schedule set forth in the original agreement. As consideration for the Phase II election, ZaZa received at the closing (i) $17 MM in cash consideration and (ii) interests in 15 of its venture partner’s wells outside of the AMI line (the "Additional Wells") with a PDP present value of approximately $3 MM based on an independent reserves report. In addition to the preceding, ZaZa will receive 100 percent carry consideration for one (1) vertical well completion and two (2) horizontal well completions and up to a $1.25 MM credit towards miscellaneous land or operational expenses. In return, ZaZa will assign to its joint venture partner approximately 20,000 net Phase II acres. To complete its former obligation in respect of the third well under Phase I of the Agreement, our counterparty also will pay for an additional $1.5 million of ZaZa’s costs for one or more additional vertical wells and has provided a further $1.5 million cash payment to ZaZa.

-Acceleration of Phase III. As consideration for the assignment of approximately 7,800 net former Phase III acres, ZaZa received further interests in the Additional Wells with an incremental PDP present value of approximately $11 MM based on an independent reserves report, for a total PDP present value in these wells of approximately $14 MM. After closing, ZaZa retains approximately 12,300 net Phase III acres, and its joint venture partner has the option to elect into some or all of this acreage on or before January 31, 2014 by making a further cash payment to ZaZa. The original agreement called for a Phase III election by January 31, 2015.

-Acreage and Production Exchange. In addition, the Company’s joint venture partner assigned to ZaZa (i) a 25 percent working interest in approximately 19,000 net additional acres acquired by its venture partner in the Agreement’s AMI and (ii) related AMI interests in multiple producing wells with a PDP present value of approximately $3 MM. The Company also expects additional production in the near future from two (2) recently drilled wells, in various stages of completion, within this newly assigned acreage. In return for the 25 percent working interest and immediately available production, ZaZa paid approximately $700,000 and assigned a 75 percent working interest in approximately 18,500 net acres of its retained acreage position in Walker and Madison Counties, Texas.