ZaZa Energy Surges 30% on Agreements with Hess

Shares of ZaZa Energy

are seeing much strength during Monday's trading session after the company announced a partial prepayment of debt with Hess

. ZaZa Energy announced a transaction with Hess that will lead to the termination or modification of the Parties' 2010 agreements in Texas and France, (ii) amended the existing exploration and development agreement with Hess in Texas for which ZaZa has been paid an immediate cash consideration of $15 million; (iii) agreed to pay down its $100 million senior secured notes due 2017 by $33 million, and (iv) engaged Jefferies to lead a joint venture process for ZaZa's Eagle Ford core and Woodbine/Eaglebine assets. Upon reaching definitive agreements on terms outlined in the HoA, ZaZa's exploration and development agreement in the Eagle Ford core, Texas, and its partnership agreement in the Paris Basin, France, will be terminated. Under the terms of the HoA, ZaZa and Hess will convey to one another certain oil, gas and mineral interests, well bores and production owned by the Parties in Texas and France. The Parties expect to sign definitive agreements no later than June 29, 2012, with closing of the transaction expected prior to August 15, 2012. Subject to the definitive agreements and customary regulatory approvals, the assets will be transferred with an effective date of June 1, 2012.

Currently, shares of ZaZa Energy are trading up about 28% at $4.16 per share.