ZaZa Energy Corporation provided operational updates related to its properties in the Eaglebine and Eagle Ford regions in Texas. Over the course of 2013, the company intends to evaluate various development scenarios in the Lower Eaglebine, Upper Eaglebine, and the Lower Cretaceous sections of its Eaglebine acreage. Based on the results of its evaluation and production results from its wells, the company will compare the economics of various horizontal and vertical commingled development options in an effort to refine its development strategy.

The company announced that its second exploration well in Northern Walker County, Texas, the Commodore A-1, is drilling ahead at 12,237' and has recovered strong mud log shows (C1-C4) indicative of liquid hydrocarbons in the Lower Eaglebine and now into the Lower Cretaceous. The company is evaluating the possibility of making a dual completion in the Lower Eaglebine and commingling the Lower Cretaceous zones and expects production results by mid to late-February. The company drilled its initial Eaglebine well, the Stingray A-1H, in Walker County, Texas.

The well log results, using the Schlumberger ELAN analysis tool, showed an estimated 21 BCF and 29 MMBO per section in place or 980,000 BOE/EUR recoverable, applying a recovery factor of 18-20%. After completion of hydraulic fracturing operations, the casing, under normal operating conditions, suffered a casing collar failure, which ZaZa determined to be the cause of a down-hole restriction in the lateral portion of the well. Metallurgical testing performed on the collar indicated that the collar failed because of embrittlement.

Notwithstanding multiple attempts, the Company has been unable to remediate this restriction and has lost the lateral. Based on encouraging mud log shows from the Commodore A-1 and the successful production results of other operators in the area, The company has prepared the Stingray for re-entry and plans to drill through the Lower Cretaceous, below the Lower Eaglebine, and attempt to complete it as a vertical commingled well. The Stingray proof of concept well is yielding the Company important data as it continues to technically prove up the Lower Eaglebine play in Northern Walker County.

As per a Fesco fluid analysis, through one open fractured interval above the casing restriction, the company recovered some gas and 45.83 API Gravity crude oil from the Stingray. The company disclosed that it successfully installed an artificial lift system on the Crabb Ranch A-1H well in Gonzales County, Texas. The well is currently producing 256 BOE/D (91% oil), has been online for 13 months, and has produced 92 MBO to date.

The company re-affirms its guidance for gross equivalent EUR in the Moulton prospect area to be 501 MBO and single well IRR of 74%. ZaZa currently has identified 103 net locations on its Moulton acreage. The company's Boening A-1H well located in DeWitt County, Texas has reached its target depth.

The Company announced that it has completed hydraulic fracturing operations on the Boening well and is drilling out the final plugs before flowback. The company expects initial production by early to mid-February. The company also disclosed that it has 'high-graded' its Eagle Ford Sweet Home acreage into twelve tier-1 developmental units and expects to further delineate this Sweet Home acreage in 2013.