Link here to SeekingAlpha:
The announcement of the joint venture between ZaZa and EOG is a positive development for the play, although perhaps of a smaller magnitude than the headlines appear to suggest.
EOG is no novice as it comes to complex horizontal oil plays, and its interest in the Eaglebine certainly sends a positive signal. EOG's Eagle Ford expertise is particularly important in the Eaglebine context.
At least three test wells will be drilled by EOG before 2013 year end on ZaZa's acreage. In the event of a positive result, drilling activity can be accelerated.
However, it would be premature to read much into the announcement. EOG is paying a relatively low price for its option to test the acreage and would be able to exit the Joint Venture after three wells should the results disappoint.