Quantum Energy Partners goes in on energy JV

The private equity firm will partner with ZaZa Energy Corporation in East Texas

Texas-based Quantum Energy Partners is focusing on energy investments in East Texas with a new joint venture. The firm is partnering with ZaZa Energy Corporation on 15 wells in the area.

ZaZa is a publicly traded exploration and production company with primary assets in the Eagle Ford and Eagle Ford East oil exploration areas in Texas.

Quantum was unavailable for comment at press time.

ZaZa will receive approximately $17 million in total consideration, consisting of both cash and ZaZa’s right to receive Quantum’s interest in the next 15 East Texas JV wells between the closing of the Quantum transaction and its second anniversary.

ZaZa will assign to Quantum 6,000 net acres in undeveloped leases within ZaZa’s East Texas JV.

Following this assignment, ZaZa will have approximately 30,000 net acres in its East Texas JV and approximately 10,000 net acres in its East Texas focus area.

“ZaZa has been meeting with Quantum for more than a year to lay the groundwork for this new relationship,” ZaZa's president and CEO Todd A. Brooks said in a statement.

In June, Quantum held a first close on $1.17 billion for its sixth energy focused fund. The fund has a $2.5 billion target, according to Private Equity International’s research and analytics division.