Toreador Resources Corporation Merger With ZaZa Energy LLC Creating a Resource-Focused E&P Company 10 August 2011
Creating a Resource-Focused E&P Company France (gross/net acres) Texas (gross/net acres) Paris Basin 780,000/340,000 Eagle Ford core 123,000/12,300 Eagle Ford/Woodbine 70,000 Operator of 423,000 net acres in two world class…
Combination Overview Entered into agreement on August 9, 2011 Ownership : 25% Toreador stockholders, 75% ZaZa equity holders NewCo: ZaZa Energy Corporation Contributing assets and plans: Eagle Ford core (drilling underway) Eagle…
Key Parameters Toreador stockholders to receive 25.4 million NewCo shares ZaZa equity holders to receive 76.2 million NewCo shares + 50 million note and/or cash ZaZa contributes 123,000 gross acres of Eagle Ford, 70,000 gross acres of…
Asset Portfolio Eagle Ford core Approx. 123,000 gross acres acquired; near-term expectations to expand to 160,000 acres Carry by JV partner Hess: Additional funds available to make further acreage acquisitions Acreage bonuses paid…
Recent Transactions in the Eagle Ford Month Buyer Seller Acres per acre Jun-11 Mitsui SM Energy 39,000 17,403 Jun-11 Talisman, Statoil SM Energy 15,400 14,610 Jun-11 Marathon Hilcorp 141,000 22,340 Mar-11 KNOC Anadarko 96,000…
Implied Valuation of Eagle Ford 300 Millions Note 250 50 and/or cash Acreage bonus and 10% W.I. carry 200 Over 200 wells in 154 Eagle Ford at 8 million per well NewCo (gross) 150 shares plus 76.4 million 273 50 million…
Recent Transactions in the Eagle Ford Marathon/Hillcorp Escondido per acre Talisman Statoil/ Reliance/Pioneer Sm Energy Chesapeake/ Implied Antares Reliance/ valuation of deal Alfa Newpeak BP/Lewis Source: IHS…
Implementation Eagle Ford JV core 3 rigs running (ZaZa operated) 14 wells drilled, 6 wells producing Plan to expand to 12 rigs by 2013 Expected total number of wells drilled at year-end: 2011 30 2012 100 2013 - 150 Eaglebine…
Impact Four Year Outlook 20,000 18,000 Paris Basin Liassic potential Eaglebine potential 16,000 Eagle Ford Paris Basin Conventional 14,000 12,000 Boe/d 10,000 8,000 6,000 4,000 2,000 Exploration Base 0…
Impact Production Before and After 6,000 6,000 Paris Basin liassic ILLUSTRATIVE 5,000 5,000 Paris Basin exploration Paris Basin conventional 4,000 4,000 (boe/d) Post-combination Accelerate long-term upside in bopd…
Asset Summaries
Eagle Ford
Eagle Ford Shale Play Technically recoverable resource (est.): 20.8 Tcf of gas 3.4 Billion bbls of oil Source: U.S. Shale Gas and Shale Oil Plays, Review of Emerging Resources: July 2011. 15
Eagle Ford Joint Venture Key Terms JV Deal Terms: ZaZa retains a 10% carried working interest in all acres acquired on behalf of the JV 123,000 acres acquired with near term expectations to expand to 160,000 acres Average royalty…
Eagle Ford Joint Venture Key Operational Metrics JV Drilling Summary: Number of Eagle Ford wells drilled Currently operating 3 drilling rigs 160 150 14 wells drilled and 5 wells drilling 140 6 wells completed and producing 120 21…
Eagle Ford Type Curves 100,000 Initial Production Oil Window Oil Window 682 boe/d Gas Condensate Window 893 boe/d Gas / Condensate Window EUR Oil Window 351 Mboe Monthly Production (boe) 10,000 Gas Condensate Window 651…
Eaglebine
Eaglebine Eastern Expansion of Eagle Ford Overview Holds 70,000 acres in the Eagle Ford / Woodbine (Eaglebine) Plans to expand position to 100,000+ acres Eaglebine Sweet Home Targeting nine drilling horizons In discussions with…
Paris Basin
Paris Basin Acreage Toreador Wholly Owned Operations (880 Bbl/d) Prospect Field Awarded, pending Toreador/Hess Applied for OtherAwarded, pending acreage Other Applied for Toreador holds 780,000 gross acres (340,000…
Paris Basin Conventional Producing Assets Overview Stratigraphic column Two mature conventional oilfields that have produced 34.1 MMBbl Production of 880 Bbl/d Proven reserves of 5.5 MMBbl Ready access to existing infrastructure…
Liassic Resource Play in Context NO SE European resource play size DK UK NL DE PL 31 UKR 7 FR 100 (Paris Basin) FR 30 Sources: US Energy Information Administration, World Shale Gas Resources: An Initial…
Paris Basin Joint Venture Key Terms Hess earns up to a 50% share of Toreadors working interests in both Toreadors awarded and pending exploration permits(1,2) in return for: Upfront Payment of 15 million Work Program Up to 120…
Conclusion
Strategic Objectives Execute Expand Consolidate 2013 2012 Rationalize portfolio Become industry resource play aggregator Diversified 2011 Expand EF to 8 rigs Drilling programs Expand EF acreage asset base in Expand EB acreage…
Creating a Resource-Focused E&P Company Creates strategically distinctive international E&P investment opportunity Offers rapid growth of the Eagle Ford and attractive exposure to Paris Basin Delivers extensive opportunities in…
Toreador Resources Corporation Merger With ZaZa Energy LLC Creating a Resource-Focused E&P Company 10 August 2011