Zapata Energy Corporation
TSX VENTURE : ZCO

Zapata Energy Corporation

November 10, 2006 12:35 ET

Zapata Releases Q3 Operating Results

CALGARY, ALBERTA--(CCNMatthews - Nov. 10, 2006) - Zapata Energy Corporation (TSX VENTURE:ZCO) announced today that production is estimated to have averaged 3,060 barrels of oil equivalent per day (boe/d) in the third quarter of 2006 compared with 2,778 boe/d in the same quarter of 2005, an increase of 10%. This increase was achieved in spite of plant turnarounds, wet weather and constraints due to pipeline and gas plant capacity.

During the third quarter, Zapata participated in drilling 8 (6.1 net) wells, resulting in 3 (2 net) gas wells, 3 (3 net) oil wells and 2 (1.1 net) abandonments. One well, which tested in excess of 2 mmcf/d, is currently being tied in with initial production rates estimated at 1.2 mmcf/d. A new oil pool discovery has been put on production with expected rates of 100 boe/d. Additional drilling is planned to delineate and develop the pool.

Zapata exited the third quarter of 2006 producing 3,225 boe/d split evenly between natural gas and crude oil. Lack of compression, pipeline and gas plant capacity for solution gas is currently restricting 200 boe/d of production of both oil and gas in two of Zapata's fields. In addition, Zapata has approximately 600 boe/d (75% gas) behind pipe, of which 500 boe/d is expected to be on production by the end of the year with the balance expected to come on stream in the first quarter of 2007.

For the remainder of 2006, Zapata intends to concentrate its field activities on tying in production and working to remove production constraints by adding pipeline and compression capacity. Zapata expects to drill up to 10 wells in the fourth quarter, all concentrating on oil.

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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