By Asjylyn Loder
in New York
Zaza Energy Corp. (ZAZA), which
got its start as a joint venture with Hess Corp. (HES), bought up oil
rights in the Eagle Ford shale field and the nearby Eaglebine in South Texas,
near the heart of the U.S. oil boom. Its first quarter revenue fell short of
interest expense. The firm’s accountants in March voiced “substantial doubt”
about the Houston-based company’s ability to stay afloat.
Hess, which
dissolved the partnership almost two years ago, lost money on the deal. And its
foray into what has turned out to be the biggest shale play in the U.S.
prompted Elliott Management Corp., billionaire Paul Singer’s investment firm, to oust John Hess last year from the
chairmanship of a company his father founded more than 80 years ago. Zaza has
since entered into a joint venture with EOG Resources Inc. in Houston, one of
the few shale companies to bring in more cash than it spends. Zaza’s shares
have declined 28 percent this year.
“We are now
significantly increasing our production volumes and revenue,” said Todd A.
Brooks, president and chief executive officer.
Credit:
Bloomberg.net
