Nasdaq Penny Stocks: ZaZa Energy Corp. Off to the Races

ZaZa Energy Corp. (Nasdaq: ZAZA) is on the watch list for Monday after the penny stock price jumped 76 cents, 19.44%, to $4.67 on volume of 2.14 million shares. The Oil & Gas drillers announced expansion to their position in the Eaglebine Shale trend in Eastern Texas by acquiring 144,123 gross acres from a subsidiary of Range Resources Corp. (NYSE: RRC).

Small-cap company ZaZa Energy, sponsors of Erica Enders and the ZaZa Energy Pro Stock team, will begin a six-well continuous drilling program in May 2012, comprised of  both vertical and horizontal wells. ZaZa will have a 75% working interest in the newly acquired Texas acreage after making two undisclosed payments and be the designated operator drilling on the newly acquired acreage.

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The recently listed Nasdaq penny stock was expected to announce earnings last week but instead filed an NT-10-K with the SEC. Click here to view.

ZaZa stock has a Market Capitalization of $354.81 million with 75.98 million shares outstanding. Shares in the energy company traded high volume in the last trading session compared to their 3 month and 10 day Average Volume: 204,656 and 433,762 respectively.

Share price in the smallcap stock ZaZa reached as high as  $5.07 on February 2, 2012.

ZaZa Energy is currently developing two resource basins in Texas and Paris, France. With a total of approximately 435,000 net acres, the portfolio of the company consists of three areas:

  • the Eagle Ford core in Texas,
  • the Eagle Ford/Woodbine resource play in Texas, and
  • the Paris Basin in France

ZaZa Energy Corp. was created in August 2011 and had not conducted any material operations until the the merger of Toreador Resources Corporation and ZaZa Energy, LLC was completed in February 2012.  Company CFO, Charles Campise, reported that they are not able to file the Annual Report on Form 10-K for the year  ended December 31, 2011 due to the need to determine the accounting, reporting and disclosure impacts that a disagreement with their joint venture partner may have on the financial statements of ZaZa Energy, LLC, the accounting predecessor.

The forthcoming 10-K is delayed since ZaZa Energy, LLC, the accounting predecessor, is expected to show a significant change in results of operations for the quarter and fiscal year ended December 31, 2011 compared to the same period last year primarily due to merger related costs ZaZa incurred as well as the receipt of less bonus income from the energy company’s joint venture partner in 2011.

Bottom Line: The Form 10-K ZaZa Energy is expected to release within 15 days of having filed the Form NT 10-K will need to be read thoroughly since even the company’s accountants and auditors are having issues with reporting the quarter ended December 31, 2011. A jump in either direction for ZaZa stock could take place once released.

Regardless of the fact, Shale Oil plays have been big money makers thus far in 2011. It very well could be “off to the races” for this penny stock.


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