Zapata Energy Corporation

Zapata Energy Corporation

June 17, 2005 14:14 ET

Zapata Energy Corporation Announces Intention to Make a Normal Course Issuer Bid

CALGARY, ALBERTA--(CCNMatthews - June 17, 2005) - Zapata Energy Corporation (TSX VENTURE:ZCO) announced today that it has filed with the TSX Venture Exchange ("TSXV") a Notice of Intention to make a Normal Course Issuer Bid (the "Bid") to purchase from time-to-time, as it considers advisable, up to 408,979 of the issued and outstanding common shares of Zapata (representing approximately five percent of the 8,179,589 common shares issued and outstanding as at June 14, 2005) on the open market. Zapata will pay the prevailing market price of such shares at the time of purchase.

The Bid will commence on June 22, 2005 and will terminate on June 21, 2006, or such earlier time as Zapata completes or terminates the Bid.

During the period from July 3, 2001 to July 2, 2002, Zapata acquired a total of 78,200 common shares pursuant to its previous normal course issuer bid.

The Bid will be conducted through the facilities of:
RBC Dominion Securities Inc.-Capital Markets
P.O. Box 50
Royal Bank Plaza
South Tower, 2nd Floor
Toronto, Ontario M5J 2W7
Contact: Graham MacKenzie
(T) 416-842-6010

Zapata's management believes that the current market price of its common shares do not fully reflect the underlying value of the common shares and that, accordingly, purchasing its own common shares would be in the best interests of Zapata and its shareholders. Such purchases will increase the proportionate interest of, and may be advantageous to all remaining shareholders. In addition, Zapata's purchases may increase liquidity to Zapata's shareholders wishing to sell their common shares.

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.

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

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