ZaZa Energy Corporation and an affiliate of Quantum Energy Partners ('Quantum') entered into a Purchase and Sale Agreement, which includes an East Texas Development Agreement comprising Walker, Grimes, Madison, Trinity, and Houston counties (collectively, the 'Quantum Agreements'). Pursuant to the terms of the Quantum Agreements:
◾ ZaZa will receive ~$17 million of total consideration, consisting of both cash and ZaZa's right to receive Quantum's interest in the next 15 East Texas JV wells between the closing of the Quantum transaction and its second anniversary (the 'Reserved Wells').
◾ ZaZa will assign to Quantum 6,000 net acres in undeveloped leases within ZaZa's East Texas JV. ZaZa retains its interest in all existing wells and the right to participate with respect to Quantum's working interest in the Reserved Wells. Following this assignment, ZaZa will have ~30,000 net acres in its East Texas JV and ~10,000 net acres in its East Texas focus area.