ZaZa Energy Corporation 2013 New York OGIS Presentation

April 16, 2013

Safe Harbor Financial Information. This presentation contains certain projections concerning the anticipated future performance of the Company. Such projections reflect various assumptions. These assumptions may or may not prove to be correct. Actual results achieved by the Company in the future will likely vary from the projections contained in this presentation, and such variations could be material. No representations or warranties, express or implied, are made as to the accuracy or reasonableness of such assumptions and projections that have been based thereon. The information in this presentation is current only as of its date and may have changed since that date.

Market & Industry Data. The market and industry data contained in this presentation are based on management’s own estimates, internal company research, surveys and studies conducted by third parties and industry and general publications, and in each case, are believed by management to be reasonable estimates. We have not independently verified market and industry data from third party sources. This data is subject to change and cannot always be verified with complete certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data gathering process and other limitations and uncertainties inherent in any statistical survey of market or industry data. As a result, you should be aware that market and industry data set forth herein, and estimates and beliefs based on such data, may not be reliable. Forward-Looking Statements. This presentation, and other written or oral statements made by or on behalf of the Company, contain forward-looking statements within the meaning of the federal securities laws. Forward looking statements include statements preceded by, followed by or that include words such as “may,” “could,” “would,” “should,” “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “project,” “plan,” “intend” and similar words or expressions. Forward-looking statements are only predictions and statements of our beliefs; they are not guarantees of performance. They are based on many assumptions. These assumptions may prove to be inaccurate. Forward-looking statements involve known and unknown risks and uncertainties. A full statement of these forward-looking statements and related risk factors are contained in the reports that the Company files with the SEC, including the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2012. The Company undertakes no obligation to update any of its forward-looking statements.

2

Defined Terms Defined Reserves and Resource Terms •

“bbl” means barrel.

•

“boe” means barrels of oil equivalent, determined using a ratio of 6 Mcf of raw natural gas to 1 bbl of condensate or crude oil, unless otherwise stated. There are no allowances for NGLs within quoted boe figures in this presentation.

•

“scf” means standard cubic feet.

•

“btu” means British thermal units

•

“M” prefix means thousand.

•

“MM” prefix means million.

•

“B” prefix means billion.

•

“pd” or “/d” suffix means per day.

•

“NGL” means Natural Gas Liquids, including condensate – these products are stripped from the gas stream at 3rd party facilities remote to the field.

A boe conversion ratio of 6 Mcf : 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6 Mcf : 1 bbl utilizing a conversion ratio of 6 Mcf : 1 bbl should not be relied upon as a statement of value equivalent. Unless stated otherwise, all per boe references are a reference to ZaZa Energy Corporation’s per boe production on a working interest basis (i.e., before royalties).

3

About ZaZa Energy 

Attractive assets in active drilling regions – –

– 

Currently pursuing an aggressive development plan in ZaZa’s core focus area –



High concentration of liquid-rich assets in the prolific Eaglebine and Eagle Ford trends 25% interest in ~73,000 net acres with 15,000 retained acres in the Eaglebine, one of the fastest growing and most prolific unconventional plays in the US(1)(4) Acquired an additional ~4,000 acres since year-end 2012

Recently consummated joint venture agreement with large independent operator

Proven management team – –

Significant experience with majors and large independents Have participated in the drilling and completion of 7,500+ wells over their careers

Financial Snapshot Market Capitalization (2)

$

147.5 MM

Total Debt (3)

$

111.7 MM

Cash (3)

$

85.9 MM

(1)

Portion of retained acreage located in Range JV, where ZaZa owns 75% interest

(2)

Based on closing stock price of $1.45 as of April 15, 2013, and 101.7 million shares outstanding, and no warrants exercised (adjusted strike price of $2.00).

(3)

Reflects pro forma adjustments for recent Eagle Ford transactions as well as proceeds from Phase I of recently announced joint venture

(4)

Assumes completion of all three JV phases.

4

Recent Milestones

 

Announced joint venture on 73,000 core net mineral acres in Walker, Grimes, Madison, Trinity, and Montgomery Counties, Texas Completing sale of Moulton Eagle Ford acreage for approximately $52.5 million –

  

Finished Stingray re-entry to Lower Cretaceous, and rigging up this week for a multi-stage vertical completion Drilled first Lower Cretaceous Buda-Rose well (Commodore A-1) on Eaglebine acreage (currently testing lower stage completion) Completed first proof-of-concept well in low resistivity Eagle Ford on Sweet Home acreage –



Boening A-1H: IP 2,434 MCFPD & 264 BOPD

Completed detailed reservoir characterization study of Eagle Ford, Eaglebine, and Lower Cretaceous –



Approximately 13,000 acres and 36 MBOE of production as of December 31, 2012

3,500’ of conventional core, 700 rotary sidewalls, advanced fluid analysis, geochemistry, and custom petrophysics

Completed 2012 Reserve Audit and Value Assessment

5

Liquids-Rich Asset Base Eaglebine Prospect

Woodbine Sand/Silt Play  Higher sand content

Approximately 37,250 net to ZaZa acres 25% interest in 73,000 acres with 15,000 retained acres(1)(3) ~4,000 net acres newly acquired since year-end 2012 15,000 retained strategic acres in middle of block Multiple targets with stacked pay Commodore in process of being completed as a vertical commingled well

Eaglebine/Eagle Ford Play  Higher silt content  Low resistivity log signature  Generally East of San Marcos Arch

Mature Eagle Ford Play  Higher carbonate content  Higher resistivity log signature  West of San Marcos Arch

Eaglebine Prospect Eaglebine Lower Cretaceous ~92,000 net acres Moulton Prospect (Sold) Eagle Ford ~11,400 net acres

Hackberry / Oakland Prospect Eagle Ford ~21,000 net acres

Dilley Prospect Eagle Ford ~2,000 net acres

Eagle Ford Play 55,000 core Eagle Ford acres with approximately 25,000 BOE of production in 2012(2)

Sweet Home Prospect Eagle Ford ~35,000 net acres

Source: Drilling-Info, investor presentations and other publicly available information. (1) Retained acreage not fully defined but may be located in Range JV area, ZaZa owns 75% interest (2) Adjusted for divestitures of Moulton and Cotulla (3) Assumes completion of all three JV phases.

6

Core Focus – Eaglebine 

ZaZa pursuing strategy to develop Eaglebine play



Expansive 140,000 gross acre presence –

Joint venture acreage: 25% interest in 73,000 net acres, with 15,000 retained net acres(1)(3)

–

Increased acreage position by an additional ~4,000 net acres since year end 2012



Joint ventures will allow ZaZa to leverage operating partner’s deep technical bench



Liquids-rich asset base with significant drilling inventory and upside potential



ZaZa maintains one of the most consolidated acreage holdings in the Eaglebine



Growing attention paid to Eaglebine as industry players continue to see promising results –

(1) (2) (3)

Surrounding acreage values have more than doubled in some surrounding areas

Net Acres(2) Joint Venture(3)

73,000

Retained

15,000

Recently Acquired

4,000

Total

92,000

Retained acreage not fully defined but may be located in Range JV area, ZaZa owns 75% interest Numbers are approximate Assumes completion of all three JV phases.

7

ZaZa’s Eaglebine Acreage is Selectively Chosen 140,000 gross acre footprint 92,000 net acre operating area; 25% interest in 73,000 net acres; 15,000 retained net acres(1)(2); ~4,000 additional wholly owned net acres

Navidad Resources, LLC Ferguson Prison Unit 9-1 IP ~ 893 BOEPD Lower Cretaceous

Bluestone Nat. Res Vick Trust IP ~ 800 BOPD Lower Eaglebine Vertical

ZaZa Energy Commodore 1V Flowing back lower zones Lower Cretaceous

ZaZa first Eaglebine test in February 2012 Recent well IPs of 600+ Boe/d support ZaZa’s technical view The Weber Lewis 1H IP ~600 BOPD CUM to Date ~ 80 MBOE Lower Eaglebine

SM Energy Co. Horizon Properties 2H IP: ~ 740 BOPD Eaglebine

Weber Energy Lewis 1H IP ~ 600 BOPD CUM to date ~ 80 MBOE Lower Eaglebine

Navidad Ferguson well with cumulative one year production of over 240 MBoe demonstrates Lower Cretaceous potential

ZaZa Energy Stingray A 1H Tested 45.3 API Oil Lower Eaglebine

ZaZa Energy Stingray A 1H RE Completing April 2013 Lower Cretaceous

ZaZa Energy Corp Wells Horizontal Eaglebine/Woodbine Wells

ZaZa Acreage Position

Permits Last 90 Days Source: Drilling-Info, investor presentations and other publicly available information. (1) Retained acreage not fully defined but may be located in Range JV area, ZaZa owns 75% interest (2) Assumes completion of all three JV phases.

8

Eagle Ford & Eaglebine Cross Section The Eaglebine represents the area of East Texas where the Eagle Ford Shale transitions into the Woodbine Sands Upper and Lower Eaglebine target zones are 500’ thick combined

Mature Eagle Ford Play

Lower Eaglebine characterized by inclusions of sands and limestones and high organic content

Woodbine Sand/Silt Play

Harris Delta

Upper Eaglebine characterized by sands and shale from the Harris Delta Immediate offset data indicates potential for simultaneous development of highly economic vertical commingled Lower Cretaceous play

Eaglebine Targets Lower Eaglebine Targets Lower Cretaceous

Source: Drilling-Info, investor presentations and other publicly available information.

9

Near Term Strategic Overview & Objectives

Eaglebine

Eagle Ford

Capital Structure

Increase Liquidity



Initiate Phase I of joint exploration and development agreement



Meet commitment well obligation under Range Resources joint operating agreement



Recomplete Stingray well as a vertical commingled well



Complete Commodore well as a vertical commingled well



Continue to strengthen our position through acreage build-up and acquisitions



Selling Moulton acreage (~13,000 net acres) in two separate transactions for a total of $52.5 million(1) ‒

Transaction includes interest in seven producing wells



High-graded Sweet Home acreage in Eagle Ford into 12 tier one development units and 20,000 acre Edwards/Eagle Ford gas expansion area



Pursue divestiture of Hackberry/Oakland and Dilley prospects



Use proceeds from recent transactions to reduce outstanding debt balance



Amended terms of senior secured notes to allow more financial latitude and increased strategic flexibility



Expected release of $15 million in Hess escrow



Reduced G&A costs

(1) Subject to customary closing price adjustments

10

Joint Venture Terms

Preliminary Assumptions



Total Eaglebine area – 140,000 gross acres, 92,000 net acres



Partner operates



ZaZa withholds 19,000 net acres pro forma 100%; JV remaining 73,000 net acres



~55,000 full phase Partner net acres delivered by ZaZa (75% of 73,000)



Partner earns in non-Range JV block 75%, ZaZa 25%



Range JV pro forma 50% Partner; 25% ZaZa; 25% Range – Partner operates



ZaZa to deliver 20,000 net acres to Partner (~ 15,000 Range JV acres + 5,000 100% ZaZa acres)



Partner pays $10 million cash to ZaZa



Partner makes a good faith attempt to secure an extension of the primary term of the Gibbs lease as well as bear 100% of the extension cost; carry ZaZa



Three well plan

Phase I (closed)

Phase II

–

Vertical Lower Cretaceous commingled; Partner to carry ZaZa and pay 100% of costs for 75% interests

–

Range JV Lower Eaglebine Horizontal; Partner to carry ZaZa and pay 100% of the costs for 50% interests

–

Horizontal Lower Eaglebine; Partner to carry ZaZa and pay 100% of the costs for 75% interests



Partner must elect by later of 60 days after third well completion or January 31, 2014



ZaZa to deliver 20,000 net acres to Partner; Partner pays total of $20 million + 25% carry



Three-well plan plus up to $1.25 million in Work (seismic, 3D, etc.) –

Phase III

One Lower Cretaceous Vertical commingled; 2 Horizontal Lower Eaglebine



Partner must elect within 60 days after completion of Phase II work



ZaZa to deliver 15,000 net acres to Partner; Partner pays total of $20 million cash + 25% carry



Three-well plan plus up to $1.25 million in Work –

One Lower Cretaceous Vertical commingled; 2 Horizontal Lower Eaglebine

11

Eagle Ford – Sweet Home Prospect ~35,000 net acres located in the Liquids Window in Lavaca and DeWitt Counties 200’+ thick Eagle Ford pay section with >8% porosity in thickest portion of organic shale Adjacent to recent Eagle Ford wells drilled by EOG, Petrohawk, Conoco / Burlington, GeoSouthern, and Penn Virginia Boening well recently began production with initial production rate of 669 BOEPD

MAGNUM HUNTER Hawg Hunter 1H IP24: 2,270 BOEPD PENN VIRGINIA Munson 1H IP30: 854 BOEPD GEOSOUTHERN Boysen B IP30D: 1,000 BOEPD

GEOSOUTHERN Burrow 1H IP24: 1,958 BOEPD

Oil MAGNUM HUNTER Oryx Hunter 1H IP30: 1,219 BOEPD

Volatile Oil ZAZA ENERGY Boening Unit A-1H IP: 669 BOEPD

Wet Gas

GEOSOUTHERN Lyman A IP30D: 752 BOEPD

GEOSOUTHERN Peebles A 1H IP24: 1,194 BOEPD

GEOSOUTHERN Pohler A 1H IP24: 866 BOEPD

GEOSOUTHERN White A IP30D: 632 BOEPD

GEOSOUTHERN Lane A 1H IP24:1,230 BOEPD

Eagle Ford Wells

GEOSOUTHERN Aldis A IP30D: 445 BOEPD

Pioneer Myra Kelly 04-1H IP24: 629 BOEPD

ZaZa Acreage Position

Source: Drilling-Info, investor presentations and other publicly available information.

12

Eagle Ford – Hackberry / Oakland Prospect ~21,000 net acres located in the Gas Condensate Window in Lavaca and Colorado Counties Likely to divest Hackberry / Oakland prospect and focus capital resources on developing Eaglebine position Eastern extension of the Eagle Ford Shale with historic high volume Lower Austin Chalk/Upper Eagle Ford wells

MISSION RES CORP Banks 1H IP24: 454 BOEPD L. AUSTIN/U. EAGLE FORD

Oil ZAZA ENERGY Grahmann Unit 1H IP24: 620 BOEPD (U. Eagle Ford/Edwards)

Volatile Oil Wet Gas

Two recently drilled ZaZa wells with new logs, conventional core, and advanced fluid and reservoir evaluation Grahmann Unit A-1H tested Edwards and Upper Eagle Ford in short, multilevel lateral completions at a combined rate of ~500 Boe/d with tie in-zone length less than 2,000’

WHITING O&G Julie Mott GU 2-A 4H IP24: 7,495 MCFGPD WORD/WORD NORTH FIELD (EDWARDS) 497 BGF GAS 6.6 MMBO

Conniff Unit A-1H completed Upper Eagle Ford but lost hole while drilling plugs (tested 101 Boe/d from first set of perfs)

Source: Drilling-Info, investor presentations and other publicly available information.

ZAZA ENERGY Conniff Unit A 1H Fish in Hole (1 perf open) IP24: 101 BOEPD (U. Eagle Ford)

UNIT PETROLEUM Fruede 2H IP24: 6,372 MCFGPD

ZaZa Eagle Ford Wells Edwards Wells Wilcox Wells

ZaZa Acreage Position

13

Investment Summary – Committed to Shareholder Value 

Established Position in the Eagle Ford Shale



First Mover Advantage in Eaglebine



Currently Evaluating Two Potential First Mover Opportunities



Strong Management Team and Experienced Partner



Plan for Rapid Production and Reserve Growth



Attractive Well Economics



Fully Funded

14

Financial Review

15

Income Statement ZaZa recognized a onetime gain on the separation from Hess of $195.6 million

Revenue and production are steadily increasing despite the developed properties divested with the Hess separation

G&A costs were heavily impacted by fees associated with the merger. Also recorded $16.5 million in non-cash stock option compensation expense

LOE per BBL continues to decline

Year Ended December 31, 2012 2010 2011 2012 Revenues and other income: Oil and gas revenues $ Bonus income Other income Total revenues and other income Operating costs and expenses Lease operating expense Exploration expense Depreciation, depletion, and amortization Accretion expense Impairment of oil and gas properties General and administrative Total operating costs and expenses Operating income (loss) Other expense Foreign currency exchange (gain) loss Loss on extinguishment of debt Interest expense, net (Gain) loss on fair value of warrants (Gain) loss on fair value of embedded conversion options Total other expense Income (loss) from continuing operations before income taxe Income tax expense (benefit) Income (loss) from continuing operations (Loss) from discontinued operations, net of income taxes Net income (loss) $

358 9,777 360 10,495

$

2,547 15,027 17,574

22 341 3,614 3,977 6,518

1,038 919 2 18,083 20,042 (2,468)

2 2 6,516 74 6,442 6,442

264 264 (2,732) 123 (2,855) (2,855)

$

$

9,583 195,569 205,152 3,602 12,913 6,641 21 9,764 97,941 130,882 74,270

65 28,026 14,705 (5,589) 8,199 45,406 28,864 82,920 (54,056) (52,171) $ (106,227)

Source: ZaZa Energy Corporation December 31, 2012 10-K

16

Year-End Prices, Production, and Reserves After the Hess separation ZaZa increased average domestic NRI from 7% to 70%

13 domestic wells with two pending completion

Continue to focus on oil producing properties

Year Ended December 31, 2012 2011 Production Oil (Bbls) Gas (Mcf) Equivalent (BOE) Average Prices Oil ($/Bbl) Gas ($/Mcf)

97,598 162,213 124,634

$ $

93.73 2.68

27,784 11,646 29,725

$ $

93.94 3.08

2010 4,331 4,247 5,039

$ $

77.80 4.88

For the Year Ended December 31, 2012 Gas Oil Equivalent (Mcf) (Bbls) (BOE) Eagle Ford: Cotulla Moulton Sweet Home Hackberry Eaglebine Other Onshore Total

Proved Developed Proved Undeveloped Total Proved

48,492 10,268 101,335 2,118 162,213

At December 31, 2012 Gas Oil Equivalent (MMcf) (MBbls) (Mboe) 303 248 299 1,410 2,815 3,049 1,713 3,063 3,348

50,780 34,106 8,189 4,523 97,598

58,862 35,817 25,078 4,876 124,634

At December 31, 2011 Gas Oil Equivalent (MMcf) (MBbls) (Mboe) 1,433 443 682 2,696 502 951 4,129 945 1,633

Source: ZaZa Energy Corporation December 31, 2012 10-K.

17

Capitalization & Liquidity Capitalization Table

Cash and Cash Equivalents Escrowed Cash Senior Secured Notes (4) 9% Convertible Senior Notes Subordinated Notes Total Debt Market Capitalization(5) Total Capitalization

Cash Balance

$ $

$

Actual (1) 34.6 15.0 33.2 40.0 47.3 120.5

$ $

As of 12/31/2012 Pro Forma Moulton(2) $ 75.9 15.0 $ 28.6 40.0 47.3 $ 115.9

147.5 $ 268.0 $

Pro Forma Phase I (3) $ 85.9 15.0 $ 24.4 40.0 47.3 $ 111.7

147.5 $ 263.4 $

$41

$76

$10

$86

$35

147.5 259.2

 On March 25, 2013, ZaZa announced the sale of 100% of its Moulton acreage in two separate transactions

for a purchase price of $52.5(2) ‒

Transaction includes ~13,000 net acres as well as interests in 7 producing wells

‒

Approximately $9.6 million will be used to pay down senior secured debt at 105%, plus any accrued and unpaid interest(4)

‒

Expected to close in Q2 2013

Source: Public Filings; ZaZa Form 10-K for year ended December 31, 2012. (1)

Source: ZaZa Form 10-K for year ended December 31, 2012

(2)

Subject to normal closing conditions

(3)

Pro forma Phase I proceeds exclude related fees and expenses

(4)

Repayment amount subject to net available cash after purchase price adjustments

(5)

Based on stock price of $1.45 as of April 15, 2013, and 101.7 million shares outstanding, and no warrants exercised (amended strike price of $2.00)

18

ZaZa Energy Corporation www.zazaenergy.com

Investor Contact JMR Worldwide Jay Morakis +1 212 786 6037 [email protected]

19

Appendix

20

Company Buildup

Hess Joint Venture



Strategic shift in operational outlook on behalf of both Companies led to the dissolution of the joint venture with Hess, whereby ZaZa focused primarily on Texas plays



As a result, ZaZa received ~61,000 net acres in the Eagle Ford area and $84 million in cash, the right to receive a percentage of the net sales proceeds if Hess divests the Cotulla Prospect, as well as a 5% overriding royalty interest in the Paris Basin



ZaZa executives hand-picked a management team comprised of individuals with distinguished backgrounds in top-tier geology, engineering, land management, legal, and finance roles who are familiar with the operational and competitive environment



Technical evaluation of the juncture between the organic- and carbonate-rich Eagle Ford group and the silica-rich Woodbine plays provided an operational thesis to make the Eaglebine an area of primary focus



Amassed and maintained key acreage in the play with the vision to find a partner with significant capital resources to fully develop acreage on an aggressive timeline



ZaZa maintains one of the most consolidated acreage positions in the Eaglebine area



Signed Joint Exploration and Development Agreement with large independent operator to further develop Eaglebine acreage, with plans to spud first well in April 2013

Management Build Up

Eaglebine Evaluation

First Mover Advantage

Eaglebine Development

21

Proven Management Team Todd Brooks (Founder, Executive Director, President & CEO)

Ian Fay (CFO)

Kevin Schepel (EVP Exploration and Production)

Thomas Bowman (EVP Evaluation, Geology and Geophysics)



Founded ZaZa Energy, LLC in 2009 and led the effort to become a publicly-traded company in early 2012



Founder of Neuhaus Investments, LLC, a company focused on making strategic energy investments across multiple geographic regions



Experienced land man, E&P investor, and entrepreneur



B.A. in Economics from Vanderbilt University; J.D. from South Texas College of Law



Founding Partner at Odin Advisors LLC



Served as Head of the Energy & Natural Resources Group | Americas at BNP Paribas



Worked as Managing Director for RBC Capital Markets and Director of M&A for UBS Investment Bank



Graduate of the University of North Carolina at Chapel Hill and Morehead-Cain scholar



Executive Vice President of Exploration and Production since June 2010



Served as Vice President of Worldwide Exploitation for Pioneer Natural Resources, Chief Petrophysicist for BHP Petroleum and 15 years as an advanced Geoscientist at Exxon



B.S. from Michigan State University; Licensed by the Texas Board of Professional Geoscientists



Served in various roles at Aspect Abundant Shale, Bass Enterprises, Fina Oil and Chemical and Tenneco Oil Co.



Industry-recognized specialist in identification of resource plays and the utilization of geophysical advancements; involved in the completion of over 1,000 horizontal resource wells across a majority of US shale plays



B.S. from Montana College of Mineral Science and Technology; Licensed by the Texas Board of Professional Geoscientists

22

Eaglebine – Type Log Historical mudlogs across the area have significant oil and gas shows in both the Upper and Lower Eaglebine section Eaglebine section is silica-rich organic shale, over 450’ thick C1-C5 oil and gas shows prevalent throughout section Historical wells have produced economic quantities of oil and gas in individual sand lenses throughout the Eaglebine section

Lower Target Source: Drilling-Info, investor presentations and other publicly available information.

23

Eaglebine – Type Log General log calculations can estimate the potential of the Eaglebine section below the Harris Delta A lot of penetrations, not a lot of full suite log combinations

Upper Target

Upper section GIP ~ 30 BCFE / mi2

UPPER TARGET GROS = 325 NET = 290 AVG_PHI_(NET) = 0.05 PAY = 90 PAY = 90.00 AVG_SW_(PAY) = 0.48

Lower section GIP of ~50 BCFE / mi2 Net interval of 275’ base on log Net pay of 140’ Primary target with high liquids yield

Sand/Silt Target LOWER TARGET

Target

High Liquids yield +7,000 GOR

Eaglebine reference thickness

Net interval of 290’ based on log Net pay of 90’

GROS = 297 NET = 275 AVG_PHI_(NET) = 0.05 PAY = 140 AVG_PHI_(PAY) = 0.06 AVG_SW_(PAY) = 0.43

Lower Target Source: Drilling-Info, investor presentations and other publicly available information.

24

Woodbine and Eaglebine Definition

?

Weber Lewis Pay

?

Crimson Exploration

ZaZa Energy Stingray

ZaZa Energy Commodore

(Woodbine Sand and Lower Eaglebine?)

(Lower Eaglebine and Cretaceous)

(Lower Eaglebine and Cretaceous)

“Cheaglebine” Play (Polk and Trinity Co.) h

l(

)

25

Illustrative Lower Eaglebine Economics Lower Eaglebine Highlights 

Well Head Volumes – 989 Mboe



Sales Volumes – 1,272 Mboe



Drill & Complete - $12 million per well

Source: Drilling-Info, investor presentations and other publicly available information. Internal ZaZa economic forecasts.

26

Illustrative Lower Eaglebine Economics Assumed Type Well Economics WELL HEAD VOLUMES Oil Gas SALES VOLUMES Oil NGL Gas CAPEX Drill and complete OPEX Fixed Variable Oil Process Gas Process NGL Marketing PRICING NGL Price Oil Oil Differential Gas INTEREST Working Revenue TAXES Federal State Severance, Oil Severance, Gas Ad Valorem PV - 10 ROI

990 433 3,343 1,274 433 435 2,440

MBOE MBO MMCF MBOE MBO MBNGL MMCF

$

12,000 M$/Well

$ $ $

10,000 3.00 0.30 10% 1%

40% of WTI $ 88.68 +$8.00 $ 4.27

/w ell/month /bbl /mcf % of NGL revenue % of Gas revenue /bbl /bbl /bbl /mcf

February NYMEX Strip Average Enterprise bid February NYMEX Strip Average

100% 74.73% 0.00% 0.00% 4.60% 7.50% 2.50% $

8,330 M$ 3.0x

Source: Drilling-Info, investor presentations and other publicly available information. Internal ZaZa economic forecasts.

27

Lower Cretaceous (Buda-Rose) – Type Log Historical mudlogs across area have significant oil and gas shows in both Kiamichi and Paluxy Shale sections Brazos Basin (Jurassic age) area has increased thickness in both Kiamichi and Paluxy shale sections. Mudlogs in area show good oil and gas shows through out shale sections C1-C5 oil and gas shows prevalent throughout section

Kiamichi Target

Recent RRC rulings have allowed the Buda-Rose section to be comingled and produced as one section Many operators are evaluating and drilling Buda-Rose wells

Source: Drilling-Info, investor presentations and other publicly available information.

Paluxy Target 28

Lower Cretaceous (Buda-Rose) – Type Log

GEORGETOWN

Target?

Kiamichi Target

GROS = 293 NET = 187 AVG_PHI_(NET) = 0.04 PAY = 72 AVG_PHI_(PAY) = 0.05 AVG_SW_(PAY) = 0.48

KIAMICHI GROS = 272 NET = 227 AVG_PHI_(NET) = 0.10 PAY = 70 AVG_PHI_(PAY) = 0.17 AVG_SW_(PAY) = 0.45

EDWARDS GROS = 165 NET = 56 AVG_PHI_(NET) = 0.04 PAY = 13 AVG_PHI_(PAY) = 0.04 AVG_SW_(PAY) = 0.46

Target?

Recent RRC rulings have allowed the Buda-Rose section to be comingled and produced as one section Many operators are evaluating and drilling Buda-Rose wells Kiamichi Net interval of 272’ based on log Net pay of 227’’ Paluxy Net interval of 127’ base on log Net pay of 106’ Navidad Resources Ferguson Prison Unit 9-1 Producing from comingled Lower Cretaceous – 6 stages across entire interval – IP 893 BOEPD EUR ~ 458 MBOE, 165 MBO, 0.470 BCF 15 months

PALUXY PALUXY GROS = 127 NET = 106 AVG_PHI_(NET) = 0.14 PAY = 61 AVG_PHI_(PAY) = 0.17 AVG_SW_(PAY) = 0.45

GLEN ROSE

Paluxy Target

GLENROSE GROS = 348 NET = 83 AVG_PHI_(NET) = 0.06 PAY = 20 AVG_PHI_(PAY) = 0.12 AVG_SW_(PAY) = 0.39

Source: Drilling-Info, investor presentations and other publicly available information.

29

Illustrative Lower Cretaceous (Buda-Rose) Economics Lower Cretaceous Highlights 

Vertical, comingled play



Well Head Volumes – 424 Mboe



Sales Volumes – 460 Mboe



Drill & Complete - $6 million per well

Source: Drilling-Info, investor presentations and other publicly available information. Internal ZaZa economic forecasts.

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Illustrative Lower Cretaceous (Buda-Rose) Economics Assumed Type Well Economics WELL HEAD VOLUMES Oil Gas SALES VOLUMES Oil NGL Gas CAPEX Drill and complete OPEX Fixed Variable Oil Process Gas Process NGL Marketing PRICING NGL Price Oil Oil Differential Gas INTEREST Working Revenue TAXES Federal State Severance, Oil Severance, Gas Ad Valorem PV - 10 ROI

424 254 1,017 460 254 83 734 $ $ $ $

MBOE MBO MMCF MBOE MBO MBNGL MMCF

6,000 M$/Well 10,000 3.00 0.30 10% 1%

40% of WTI $ 88.68 +$8.00 $ 4.27

/w ell/month /bbl /mcf % of NGL revenue % of Gas revenue /bbl /bbl /bbl /mcf

February NYMEX Strip Average Enterprise bid February NYMEX Strip Average

100% 74.73% 0.00% 0.00% 4.60% 7.50% 2.50% $

6,743 M$ 2.6x

Source: Drilling-Info, investor presentations and other publicly available information. Internal ZaZa economic forecasts.

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Eaglebine Area – Marketing and Midstream Eaglebine Midstream Map Available Takeaway Capacity Gulf South

Copano, Energy Transfer (~400 MMcf/d), Kinder Morgan, Navidad and Atmos Energy (~200 MMcf/d)

Copano, Energy Transfer, Enbridge, Halcon, Kinder Morgan, and American Midstream have budgeted for major expansions

Copano

Pipelines willing to expand systems with acreage dedication

Copano Copano Gas

Ample Processing Capacity

Multiple Cryogenic plants scheduled to begin construction

Tx Muni Po wer

Multiple Energy Transfer YGrade lines to fractionation in addition to trucking options

Burke/Navidad Y Grade storage on site

Source: Drilling-Info, investor presentations and other publicly available information.

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ZaZa Eaglebine Land Overview ZaZa Eaglebine Acreage Expiration by Year

40,000 35,000 11.3%

30,000

17.7% 0.2% 8.5%

25,000

2013 2014 2015

20,000

2016

15,000

2017 37.4%

10,000

24.9%

2018

5,000 0 2013

2014

2015

2016

2017

2018

 Lease extension costs and renewals significantly reduced by joint venture  Majority of recently acquired, 100% ZaZa acreage not expiring until 2016

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ZaZa Energy Corporation www.zazaenergy.com

Investor Contact JMR Worldwide Jay Morakis +1 212 786 6037 [email protected]

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