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ZAZA ENERGY REPORTS 2014 THIRD QUARTER AND NINE MONTH

FINANCIAL AND OPERATIONAL RESULTS



HOUSTON, TX (November 12, 2014) – ZaZa Energy Corporation (the “Company” or “ZaZa”) (NASDAQ: ZAZA) today announced results for its third quarter and for the nine months ended September 30, 2014.



Financial Highlights for Third Quarter 2014



· Total production of 54.8 MBOE, a year-over-year increase of 145%.

· Revenues of $2.7 million, a year-over-year increase of 144%.

· Total operating expenses declined by ~60%; G&A declined by ~30%.

· Net income of $10.1 million vs. a net loss of $20.6 million.

· Total debt declined by $7.7 million or ~8% over the past nine-months (3Q14 vs. CY13).



Third Quarter Results



For the quarter ended September 30, 2014, the Company reported total revenues of $2.7 million, as compared to $1.1 million for the comparable 2013 period, an increase of approximately 144%. Operating costs and expenses for the third quarter ended September 30, 2014 were $6.3 million as compared to $15.2 million in the same 2013 period. Driving this decrease was lower general and administrative expenses, which declined by approximately 30%, offset by an increase in lease operation costs, and an increase in depreciation, depletion, amortization and accretion. Additionally, during the 2013 third quarter, the Company recorded an impairment of oil and gas properties of $9.2 million and a loss on asset divestitures of approximately $0.8 million. There were no similar impairment charges or asset divestitures in the 2014 third quarter. The Company reported an operating loss of $3.6 million for the three months ended September 30, 2014 as compared to an operating loss of $14.1 million for the three months ended September 30, 2013.



Other expenses and income for the quarter ended September 30, 2014 and 2013 were income of $9.8 million and expenses of $1.2 million, respectively. Included in other expenses and income for 2014 quarter are interest expenses of $3.5 million and gains on financial instruments of $13.4 million. Other expenses and income for 2013 quarter are interest expenses of $3.5 million and gains on financial instruments of $2.8 million.



The Company reported net income of $10.1 million, or income per diluted share of $0.83, for the three months ended September 30, 2014. This compares to a net loss of $20.6 million, or a loss per diluted share of $2.01, for the corresponding period in 2013.

https://www.sec.gov/Archives/edgar/data/1528393/000110465914079973/a14-19896_3ex99d1.htm