Zapata Energy Corporation
TSX VENTURE : ZCO

Zapata Energy Corporation

November 16, 2006 16:31 ET

Zapata Announces Third Quarter Results

CALGARY, ALBERTA--(CCNMatthews - Nov. 16, 2006) - Zapata Energy Corporation (TSX VENTURE:ZCO) announced its financial and operating results today for the three-month and nine-month period ended September 30, 2006.



HIGHLIGHTS:

THIRD QUARTER NINE MONTHS
- gross sales revenue $14.0 million - $41.7 million
- cash flow $5.8 million - $18.4 million
- net income $1.2 million - $5.3 million
- Drilled 8 (6.1 net) wells, resulting in 3 (3 net) oil wells and 3 (2 net)
gas wells.


OUTLOOK:

In the fourth quarter Zapata will be bringing on behind-pipe production and removing capacity constraints limiting its gas and oil production. Currently, 200 boepd is restricted and 600 boepd of production is behind pipe, most of this is expected to be on production by the end of the first quarter of 2007. Zapata's drill program for the last half of 2006 has been limited to targeting oil prospects. Two new oil pools have been identified on which development is planned in 2007.



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Three months ended Nine months ended
Sept 30 Sept 30
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(Thousands unless
otherwise noted) 2006 2005 Change 2006 2005 Change
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FINANCIAL
Gross revenue 13,991 $ 14,604 (4%) 41,722 $ 41,587 -
Cash flow from
operations 5,822 7,397 (21%) 18,367 20,337 (10%)
Per share (basic) 0.34 0.45 (25%) 1.10 1.26 (13%)
Per share (diluted) 0.33 0.44 (24%) 1.07 1.20 (11%)
Net income 1,249 3,552 (65%) 5,332 7,611 (30%)
Per share (basic) 0.07 0.22 (66%) 0.32 0.47 (32%)
Per share (diluted) 0.07 0.21 (66%) 0.31 0.45 (31%)
Capital expenditures 13,224 5,914 124% 35,151 14,817 137%
Bank debt 32,050 24,890 29% 32,050 24,890 29%
Working capital deficiency
(excluding bank debt) 8,186 914 796% 8,186 914 796%
Shares outstanding
(weighted average)
Basic 17,138 16,397 5% 16,745 16,236 3%
Diluted 17,562 16,970 3% 17,164 16,962 1%

OPERATIONAL
Natural gas sales (mcf/d) 8,886 8,135 9% 9,047 8,537 6%
Average sales price
($/mcf) 5.92 9.02 (34%) 6.57 8.10 (19%)
Field netback ($/mcf) 2.26 4.87 (54%) 2.97 4.32 (31%)
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Oil sales (bbls/d) 1,454 1,278 14% 1,485 1,384 7%
Average sales price
($/bbl) 62.65 60.05 4% 58.11 54.10 7%
Field netback ($/bbl) 34.18 33.15 3% 32.34 28.87 12%
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NGL sales (bbls/d) 130 145 (10%) 143 154 (7%)
Average sales price
($/bbl) 63.78 59.44 7% 49.86 53.50 (7%)
Field netback ($/bbl) 42.70 42.90 - 31.08 37.10 (16%)
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Total sales (boe/d 6:1) 3,065 2,778 10% 3,136 2,961 6%
Average sales price
($/boe) 49.61 57.13 (13%) 48.74 51.44 (5%)
Field netback ($/boe) 24.59 31.74 (23%) 25.30 27.89 (9%)
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(1) All comparative share numbers and per share amounts have been restated
to reflect the 2 for 1 stock split June 23, 2006.


For full third quarter disclosure, please refer to our website www.zapata.ca or view our SEDAR filings at www.sedar.com. 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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