Zapata Energy Corporation

Zapata Energy Corporation

February 16, 2010 11:41 ET

Zapata Energy Corporation: Operations and Drilling Update

CALGARY, ALBERTA--(Marketwire - Feb. 16, 2010) - Zapata Energy Corporation (TSX VENTURE:ZCO) is pleased to provide an operations and drilling update.

Zapata's core oil producing area in East Central Alberta was targeted in the 3rd and 4th quarters with a 13 well drilling program. The Silver Llyodminster and Cummings Pools were already extended with 11 of the 12 wells cased currently on production.

The Silver waterflood, fully implemented in September of 2009, continues to show encouraging results with improving well productivity from the pool. This pool has substantial original oil in place and every increase in recovery factors adds significant recoverable reserves to the Corporation.

Zapata continues to focus activity in East Central Alberta with $1.5mm of new 3D seismic which is expected to delineate two ten well drilling programs in fiscal 2010. Zapata is continuing to expand its significant land base in the area through crown sales and farm-ins. Prices received for Zapata's oil blend from this area are very attractive providing superior netbacks for the Corporation.

In the first quarter Zapata has participated in one (0.5 net) horizontal multi-frac Bluesky gas well in Central Alberta. The well has been completed and testing is presently underway.

Zapata is well positioned on the Pembina Cardium play with 10.5 net sections (2,719 ha) of Cardium rights located in the East Pembina area where such rights at recent land sales averaged $7,000/ha. Zapata has a total of 58 gross (47 net) Cardium sections in the greater Cardium fairway. Zapata is proceeding with licensing its initial (one net) horizontal multi-stage frac well at East Pembina.

Zapata's is looking forward to having its reserve evaluation report completed before the end of February.

Zapata's production is being maintained at 2,700 to 2,900 boe/d. Cold weather and fog (resulting in ice and power outages), primarily is East Central Alberta, have caused unexpected down time and fluctuations in daily production.

Zapata is a junior oil and gas production company operating in western Canada and trades on the TSX Venture Exchange under the symbol "ZCO."

This press release may include forward‐looking statements which are statements other than of historical fact, such as information regarding drilling potential and production forecasts. Factors that could cause actual results to differ materially from our expectations include exploration and development risks, commodity prices and operating hazards. A barrel of oil equivalent (boe), derived by converting gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil, may be misleading, particularly if used in isolation. A boe conversion is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.

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