Zapata Energy Corporation

Zapata Energy Corporation

October 26, 2009 09:00 ET

Zapata Energy Corporation: Drilling and Production Update

CALGARY, ALBERTA--(Marketwire - Oct. 26, 2009) - Zapata Energy Corporation (TSX VENTURE:ZCO) is pleased to provide a drilling and production update.

The first seven wells of its 10 well program in East Central Alberta have been cased for oil production from the primary target. Four wells have been completed and have swab tested at rates up to 100 boe/d. These wells are expected to initially produce between 65 and 75 bbls of oil per day. Production from this program will begin in November.

The wells to date have come in under budget and nine of the 10 wells will be eligible for the Alberta drilling incentive credit. The success of this program has encouraged Zapata to expand the program by up to three wells to take advantage of current drilling costs and rig availability.

Plans are underway for two additional 10 well drilling programs targeting oil prospects identified by existing and on-going 3D seismic surveys.

Zapata is anticipating a strong third quarter. Production is currently 60 percent oil and NGL and 40 percent natural gas, as additional gas properties have been shut in due to low gas prices. Although the shut in gas will lower daily production by 100 to 200 boe/d in the third quarter, higher oil production and stronger oil prices are expected to more than offset any resulting reduction in net income and cash flow. Fourth quarter production and financial performance should benefit from new oil production and from improved natural gas prices.

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.

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

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