Zaza Energy Corp Com (NASDAQ:ZAZA)

CAPS Rating: 1 out of 5

The Company is an independent international energy company engaged in oil and natural gas exploration, development, production, leasing and acquisition activities.

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Member Avatar asilverp (60.97) Submitted: 8/30/2014 11:01:02 AM : Underperform Start Price: $5.88 ZAZA Score: +17.27

Crashing and still has high valuations. Worth shorting.

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Member Avatar SmartAce (99.86) Submitted: 8/25/2014 10:01:49 AM : Underperform Start Price: $7.10 ZAZA Score: +32.17

What did one snowman say to the other snowman?

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Member Avatar jed71 (44.09) Submitted: 5/15/2014 11:40:54 AM : Underperform Start Price: $6.48 ZAZA Score: +31.91

TSIF does a very nice job summarizing the red thumb case for Zaza here:

http://caps.fool.com/Pitch/ZAZA/7126973/zaza-energy-corp-rose-from-043.aspx

I wanted to add a few items that I am seeing, as well. Someone may have already touched on this and if they have, my apologies. I noticed this was created from a reverse merger of two firms:

“On February 21, 2012, we consummated the combination (the Combination) of ZaZa LLC and Toreador, on the terms set forth in the Agreement and Plan of Merger and Contribution, dated August 9, 2011, and as subsequently amended (as amended, the ?Merger Agreement). Pursuant to the Merger Agreement, (i) a wholly-owned subsidiary of ZaZa merged with and into Toreador (the ?Merger), with Toreador continuing as a surviving entity, (ii) the three former members of ZaZa LLC (the ZaZa LLC Members?), holding 100% of the limited liability company interests in ZaZa LLC, directly and indirectly contributed all of such interests to ZaZa (the Contribution), and (iii) the holders of certain profits interests in ZaZa LLC contributed 100% of such interests to ZaZa (the Profits Interests Contribution). Upon the consummation of the Combination, Toreador and ZaZa LLC became our wholly-owned subsidiaries. The Combination was treated as a reverse merger under the purchase method of accounting in accordance with GAAP. For accounting purposes, ZaZa LLC is considered to have acquired Toreador in the Combination. Under the purchase method of accounting, the assets and liabilities of Toreador were recorded at their respective fair values and added to those of ZaZa LLC in our financial statements.”

I really dislike reverse mergers as a general rule, but I do recognize some of them can be legit. It looks like at one point Zaza had a good deal going on with Hess.

“After the termination of the Hess joint venture and the disposition of its French oil and gas properties, ZaZa’s principal assets were approximately 66,000 net acres in the Eagle Ford core and approximately 89,000 net acres in the Eaglebine. The Company's strategic objectives since then have focused on executing drilling operations to further appraise its acreage and evaluating joint venture opportunities to realize its development. Since the dissolution of the Hess joint ventures, ZaZa has drilled two wells in the Eaglebine and one well in the Eagle Ford and has entered into the joint venture with EOG Resources, Inc. described below.”

So then Hess made a $84MM payment to the company and the relationship was dissolved. Since July 2012, it looks like they have done very little drilling (I only see 3 wells total). They have limited cash and assets, and have run up quite a large accumulated deficit. Cash is running at a very thin at $15MM (with other cash being restricted) and they continue to burn free cash at an alarming rate (about $80MM burned in 2013). I personally don’t think they will survive the next 12-24 months, but let’s see how it plays out.

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Member Avatar SqwiiTrader (< 20) Submitted: 12/12/2013 5:56:22 PM : Outperform Start Price: $10.00 ZAZA Score: -63.81

Big fat IHS

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Member Avatar kardoc57 (< 20) Submitted: 8/11/2013 10:06:54 PM : Underperform Start Price: $11.00 ZAZA Score: +74.92

bad management

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Member Avatar bluetune1 (< 20) Submitted: 3/27/2012 4:08:21 PM : Outperform Start Price: $33.80 ZAZA Score: -147.11

Finished merger and will benefit from southern Keystone pipeline, should head for $6.

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Member Avatar Monroe7 (< 20) Submitted: 12/27/2011 9:18:23 PM : Underperform Start Price: $43.00 ZAZA Score: +147.19

Losing money

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Member Avatar Mavrik100 (< 20) Submitted: 11/2/2010 3:22:03 PM : Outperform Start Price: $151.80 ZAZA Score: -164.57

These folks have competed successfully in the Paris Basin land grab and become one of a few contenders in the "European Bakken" play. If predictions about the amount of oil in the Paris Basin shale pan out, than it's just a matter of time before horizontal fracture techniques being used in the U.S. to great success begin to bear fruit across the pond. This stock could sky-rocket on news of killer IP rates.

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Member Avatar chicachick (73.05) Submitted: 10/12/2010 3:57:36 PM : Underperform Start Price: $143.75 ZAZA Score: +167.96

ultralong

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Member Avatar cepeda (< 20) Submitted: 7/8/2010 1:20:06 PM : Outperform Start Price: $58.50 ZAZA Score: -179.95

TRGL is my strongest bet for the next couple of years.
Good management, controlled costs, reduced debt, stable convencional oil reserves and great JV with Hess on unconvencional shale oil in the Paris Basin. This stock, at this price, around 6$, will be life changing on a strong investment

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Member Avatar Usagisama (< 20) Submitted: 5/12/2010 10:32:24 AM : Outperform Start Price: $92.00 ZAZA Score: -166.55

The Hook:
The Hess partnership agreement is a significant endorsement of the potential of the Paris Basin oil shale
play. The agreement should provide considerable technical resources and expertise for the exploitation program. This may be seen as a major step forward for the company.

The Line:
The farm-in deal implies a value of US$9.90/sh for Toreador’s exploration acreage, before success fees, providing a support level some 14% above the current share price. Should the oil-shale exploitation program in the Paris Basin prove successful we believe there is
considerable upside potential beyond this level and calculate an unrisked upside NAV of over
US$70/sh.

The Sinker:
Volume is up big in the last few days but the stock price has not moved.

Now, something else - Toreador has been picked by a number of high-score CAPS members -- yet, these people seem to have bought too early (stock didn't beat the market, so they have a negative score). So the short term play on this stock has made it a better VALUE PLAY irrespective of the recent Hess news. In short NOW is a very, very good time to get in on this.

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Member Avatar texbudda (< 20) Submitted: 2/9/2010 7:41:45 PM : Outperform Start Price: $90.90 ZAZA Score: -173.98

i have faith it's going to blw the top off when it finally blows wait and see

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Member Avatar condor19 (< 20) Submitted: 1/27/2010 11:49:12 AM : Outperform Start Price: $129.21 ZAZA Score: -179.85

Oil find under Paris France

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Member Avatar bigmike7 (32.54) Submitted: 10/23/2009 3:16:08 AM : Outperform Start Price: $94.50 ZAZA Score: -177.64

Own 700,000 sq acres of oil leases in Paris, France - with billions of barrels of oil - right in the middle of Europe - this is gonna be HUGE!!!

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Member Avatar sonnyis1 (32.20) Submitted: 9/29/2009 10:40:13 AM : Outperform Start Price: $101.62 ZAZA Score: -183.61

No way but up

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Member Avatar STRATTON1 (< 20) Submitted: 9/25/2009 12:12:05 PM : Underperform Start Price: $91.80 ZAZA Score: +186.86

Hype effect from publicity about horizontal drilling under the Eiffel Tower? Hmmm. Price might be skewed right now.

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Member Avatar youngmoney281 (< 20) Submitted: 9/9/2009 9:03:28 PM : Outperform Start Price: $72.00 ZAZA Score: -187.33

IT WILL DO WORK

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Member Avatar thross (< 20) Submitted: 3/24/2008 8:53:07 AM : Outperform Start Price: $80.10 ZAZA Score: -149.90

need help on this one

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Member Avatar ToucheparMidas (< 20) Submitted: 6/23/2007 8:45:41 PM : Outperform Start Price: $160.90 ZAZA Score: -137.46

This has been a highly volatile stock for many years. The company is making progress with their NG coming on line in Romania and Turkey. With a little good news, the price of this stock should start to move up. Historically, the price has moved quickly when it does begin to recover.

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Member Avatar fullwealth (< 20) Submitted: 3/5/2007 12:10:17 PM : Outperform Start Price: $226.70 ZAZA Score: -151.44

ride the index back up

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