Things may be looking up for struggling energy company ZaZa Energy Corp. (Nasdaq: ZAZA), which has regained compliance with the $1 minimum closing price to remain listed on the Nasdaq exchange.

The company announced the news in a Sept. 8 filing with the U.S. Securities and Exchange Commission. ZaZa had been notified in March that its stock price was too low.

Houston-based ZaZa is an oil exploration and development company that has assets in the Eagle Ford shale play in Texas.

The company’s accountant raised substantial doubt about ZaZa’s ability to continue as a going concern, or without the threat of liquidation.

The company’s success depends on developing current oil reserves and finding and acquiring additional reserves. The company said in a Aug. 13 SEC filing that it does not generate enough cash to operate and pay its debt through the year.

ZaZa’s senior secured note holders may require the company to buy back the notes starting in February.

The company has taken steps to raise money. In July, it entered into a two-phase $7.5 million stock offering transaction. The second part of the offering, which should bring in about $2.5 million, is expected to close in October. 

In August, ZaZa sold a four percent working interest in undeveloped leases in Texas to Quantum Energy Partners for $17 million.

The company has also been able to increase revenues. In the three months ended June 30, ZaZa had about $3.7 million in revenue, compared with about $2.4 million in revenue for the three months ended June 30, 2013.

For the previous edition of Turnaround Tuesday, see “EveryWare Subsidiary Sells Unit to Hilco.” For more struggling companies, see Mergers & Acquisitions Distressed Company Watch List.

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