Zapata Energy Corporation
TSX VENTURE : ZCO

Zapata Energy Corporation

December 16, 2009 09:00 ET

Zapata Provides First Quarter 2010 Activity Update

CALGARY, ALBERTA--(Marketwire - Dec. 16, 2009) -

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Zapata Energy Corporation (TSX VENTURE:ZCO) ("Zapata") is pleased to provide this update of its planned capital activity for the first quarter of 2010.

Zapata's Cardium oil rights in the Pembina area include three net sections in an area of recent activity where horizontal drilling on adjacent lands has resulted in successful Cardium oil wells. Well logs of existing vertical wells on Zapata lands indicate six meters of Cardium pay. There are twelve potential horizontal well locations on these lands with the first well being scheduled for the first quarter of 2010. The Cardium light oil play has tremendous potential. Zapata has additional lands in the Cardium fairway which are presently being evaluated.

Two of three additional wells planned for the fourth quarter in East Central Alberta have been completed. They are expected to be on production prior to year end, pushing the Corporate production rate through 2,900 boe/d (60% oil). The third well has just been spudded. The Silver waterflood continues to show positive results and is expected to significantly improve pool recoveries. Two additional secondary recovery projects are being implemented.

Zapata is a 50% partner in a horizontal well being drilled in Central Alberta targeting liquid rich natural gas with anticipated initial production rates of 5,000 to 7,000 mcf a day. Zapata has lands prospective for four (2 net) such wells.

On December 4, 2009, Zapata announced that it would offer for sale, through a selling group led by Emerging Equities Inc. on a "best efforts" basis, up to 2,000,000 units of Zapata ("Units") at a price of $3.00 per Unit, with each Unit consisting of one common share and one-half of a common share purchase warrant, with each whole warrant exercisable into one common share at a price of $4.00 per share for one year following the closing date, and up to 600,000 common shares of Zapata to be issued on a "flow-through" basis ("Flow-Through Shares") pursuant to the Income Tax Act (Canada) (the "Tax Act") at a price of $3.40 per Flow-Through Share, for maximum aggregate proceeds of $8,040,000. The closing of this offering will be rescheduled to December 23, 2009 to allow for completion of all necessary paperwork.

Zapata's Corporate Presentation has been updated and is available for viewing at Zapata's website at www.zapata.ca under the link "Investor Info - Presentation".

This press release may include forward-looking statements and forward-looking information ("forward-looking information") within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "intend", "may", "will", "project", "should", objective", "continuous", "estimate" or similar words suggesting future outcomes. In particular, but without limitation, this press release includes forward-looking information relating to the anticipated closing of the Offering and the intended use of proceeds. Zapata believes that the expectations reflected in such forward-looking information are reasonable but no assurances can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.

Forward-looking information is based on various assumptions. Those assumptions are based on information currently available to Zapata, including information obtained from third party industry analysts and other third party sources and include the historic performance of Zapata's business, current business and economic trends, trading data and cost estimates. You are cautioned that the preceding list of assumptions is not exclusive.

Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The closing of the Offering could be delayed if Zapata is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The Offering will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the offering will not be completed within the anticipated time or at all. The intended use of the net proceeds from the sale of the Units by Zapata might change if the board of directors of Zapata determines that it would be in the best interests of Zapata to deploy the proceeds for some other purpose. Further risks and uncertainties relating to the business and operations of Zapata include but are not limited to the risks identified in Zapata's Annual Information Form for the year ended December 31, 2008 under the heading "Risk Factors".

The forward looking statements contained in this press release are made as of the date hereof and Zapata undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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