Zapata Energy Corporation
TSX VENTURE : ZCO

Zapata Energy Corporation

November 30, 2007 11:36 ET

Zapata Energy Corporation Announces Third Quarter Results and New Director

CALGARY, ALBERTA--(Marketwire - Nov. 30, 2007) - Zapata Energy Corporation (TSX VENTURE:ZCO) announced its financial and operating results for the three and nine month periods ended September 30, 2007.



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Q3 - 2007 HIGHLIGHTS
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Three months ended Nine months ended
(Thousands unless September 30 September 30
otherwise noted) 2007 2006 Change 2007 2006 Change
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FINANCIAL
Gross revenue $ 13,266 $ 13,991 (5%) $ 40,747 $ 41,722 (2%)
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Cash flow from
operations 5,186 5,822 (11%) 15,488 18,367 (16%)
Per share (basic) 0.30 0.34 (12%) 0.89 1.10 (19%)
Per share
(diluted) 0.30 0.33 (11%) 0.88 1.07 (18%)
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Net income 47 1,249 (96%) 1,356 5,332 (75%)
Per share (basic) 0.00 0.07 (96%) 0.08 0.32 (76%)
Per share
(diluted) 0.00 0.07 (96%) 0.08 0.31 (75%)
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Capital
expenditures 3,697 13,224 (72%) 11,440 35,167 (67%)
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Bank debt 38,350 32,050 20% 38,350 32,050 20%
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Bank debt and
working capital
deficiency 42,077 40,236 5% 42,077 40,236 5%
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Shares outstanding
(weighted average)
Basic 17,391 17,138 1% 17,406 16,745 4%
Diluted 17,523 17,562 - 17,606 17,164 3%
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OPERATIONAL
Natural gas sales
(mcf/d) 8,363 8,886 (6%) 9,298 9,047 3%
Average sales
price ($/mcf) 6.67 5.92 13% 7.23 6.57 10%
Field netback
($/mcf) 2.69 2.26 19% 3.02 2.97 2%
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Oil sales (bbls/d) 1,228 1,454 (16%) 1,253 1,485 (16%)
Average sales
price ($/bbl) 63.49 62.65 1% 57.15 58.11 (2%)
Field netback
($/bbl) 34.41 34.18 1% 30.39 32.34 (6%)
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NGL sales (bbls/d) 176 130 36% 184 143 29%
Average sales
price ($/bbl) 59.32 63.78 (7%) 56.21 49.86 13%
Field netback
($/bbl) 40.53 42.70 (5%) 38.71 31.08 25%
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Total sales (boe/d
6:1) 2,798 3,065 (9%) 2,987 3,136 (5%)
Average sales
price ($/boe) 51.53 49.61 4% 49.96 48.74 3%
Field netback
($/boe) 25.69 24.59 4% 24.55 25.30 (3%)
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Figure 1 - Extracted from Zapata's Q3-2007 interim report available on
www.sedar.com or www.zapata.ca.

Highlights of the third quarter:
- Achieved $5.2 million cash flow from operations
- Gross sales revenues reached $13.3 million
- Reduced net bank debt and working capital deficiency by $4.2 million since
the beginning of 2007
- Averaged 2,798 boe/d production sales
- Drilled three (2.0 net) and recompleted four wells


Zapata continued to show strong cash flow from operations: $15.5 million in the first nine months of 2007 and $5.2 million for the third quarter of 2007, up from $4.9 million in the second quarter of 2007.

Gross revenues in the third quarter of 2007 totaled $13.3 million, five percent lower than the $14.0 million realized in the third quarter of 2006. For the nine-month period ended September 30, gross revenues decreased two percent from $41.7 million in 2006 to $40.7 million in 2007. Zapata earned $47,050 in the third quarter and $1.4 million for the first nine months of 2007. Lower earnings were caused by higher depletion charges on Zapata's greater asset base, ARTC cancellation, higher G&A expenses and increased interest charges.

Zapata's fundamentals are strong, costs are reducing and opportunities are becoming available. Production that was shut-in during the third quarter as a result of gas plant turnarounds is now on-stream bringing Zapata's production over 3,000 boe/d. The Corporation's financial strength has been maintained and positive earnings continued. Zapata's financial strength and balanced commodity mix, position the Corporation to take advantage of opportunities in the current market cycle.

Zapata recently added two members to its Board of Directors, Mr. John (Jack) Bolter as of August 1, 2007 and Mr. Michael Hibberd as of November 29, 2007. Both appointments are subject to TSX Venture Exchange approval. This will bring Zapata's board to a total of five members, three of whom will be independent. With Mr. Bolter's 40 years of experience and Mr. Hibberd's 25 years of experience, both individuals will be great additions to Zapata's Board.

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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