Zapata Energy Corporation
TSX VENTURE : ZCO

Zapata Energy Corporation

May 28, 2009 13:40 ET

Zapata Energy Corporation: 2009 First Quarter Results Released

CALGARY, ALBERTA--(Marketwire - May 28, 2009) - Zapata Energy Corporation (TSX VENTURE:ZCO) is pleased to announce that it has released its first quarter 2009 financial statements and MD&A. These documents are all available on SEDAR.

Zapata achieved cash flow from operations of $3.5 million in the first quarter, as oil prices bottomed out and natural gas prices remained weak. In spite of this, the Corporation retained relatively strong field netbacks for crude oil at $17.39 per boe, 41 percent higher than the $12.36 per boe achieved for natural gas. Zapata's 55% oil and NGL production base and strengthening of crude oil prices are expected to improve the Corporation's netbacks over the balance of the year. To capitalize on the higher field netbacks for crude oil and the Alberta governments recently announced Energy Incentive Program, a 10 to 20 well drilling program in Zapata's core East Central Alberta oil producing area is planned for the latter part of 2009.



----------------------------------------------------------------------------
Three months ended March 31 2009 2008 Change
----------------------------------------------------------------------------
FINANCIAL (Thousands unless otherwise noted)
----------------------------------------------------------------------------
Gross revenue $ 10,323 $ 14,993 (31%)
----------------------------------------------------------------------------
Cash flow from operations 3,519 6,701 (47%)
----------------------------------------------------------------------------
Per share (basic) 0.21 0.39 (46%)
----------------------------------------------------------------------------
Per share (diluted) 0.21 0.39 (45%)
----------------------------------------------------------------------------
Net income (loss) (1,641) 1,085 (251%)
----------------------------------------------------------------------------
Per share (basic) (0.10) 0.06 (257%)
----------------------------------------------------------------------------
Per share (diluted) (0.10) 0.06 (257%)
----------------------------------------------------------------------------
Capital expenditures 6,961 10,134 (31%)
----------------------------------------------------------------------------
Bank debt 41,750 36,650 14%
----------------------------------------------------------------------------
Bank debt and working capital deficit 52,456 47,231 11%
----------------------------------------------------------------------------
Shares outstanding (weighted average)
----------------------------------------------------------------------------
Basic 16,695 17,325 (4%)
----------------------------------------------------------------------------
Diluted 16,695 17,362 (4%)
----------------------------------------------------------------------------
FIELD / OPERATIONAL
----------------------------------------------------------------------------
Natural gas sales (mcf/d) 7,223 8,580 (16%)
----------------------------------------------------------------------------
Average sales price ($/mcf) 5.44 7.76 (30%)
----------------------------------------------------------------------------
Field netback ($/mcf) 2.06 3.99 (48%)
----------------------------------------------------------------------------
Oil sales (bbls/d) 1,339 1,145 17%
----------------------------------------------------------------------------
Average sales price ($/bbl) 43.80 83.99 (48%)
----------------------------------------------------------------------------
Field netback ($/bbl) 17.39 50.11 (65%)
----------------------------------------------------------------------------
NGL sales (bbls/d) 153 138 11%
----------------------------------------------------------------------------
Average sales price ($/bbl) 36.45 78.60 (54%)
----------------------------------------------------------------------------
Field netback ($/bbl) 21.25 53.54 (60%)
----------------------------------------------------------------------------
Total sales (boe/d 6:1) 2,695 2,713 (1%)
----------------------------------------------------------------------------
Average sales price ($/boe) 38.40 63.97 (40%)
----------------------------------------------------------------------------
Field netback ($/boe) 15.36 36.50 (58%)
----------------------------------------------------------------------------
Realized gain (loss) on financial derivatives
($/boe) 4.15 (3.24) 228%
----------------------------------------------------------------------------
(i) Average sales price ($/boe) 42.55 60.73 (30%)
----------------------------------------------------------------------------
(i) Netback ($/boe) 19.51 33.26 (41%)
----------------------------------------------------------------------------
(i) Includes realized gain (loss) on financial derivatives


Currently Zapata is expanding its Silver area waterflood while using the balance of its cash flow to reduce debt. The Silver area waterflood continues to show positive results and is expected to continue to increase production and reserves.

A 10 to 20 well drilling program in Zapata's core East Central Alberta oil producing area is planned for the latter part of 2009, to capitalize on the higher field netbacks for crude oil and the Alberta governments recently announced royalty credit program.

Zapata's annual general and special meeting of shareholders will be held at 3:00 pm on Tuesday June 9, 2009 at the Petroleum Club, McMurray Room, 319 Fifth Avenue SW, Calgary, Alberta.

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.

Contact Information