Zapata Energy Corporation

Zapata Energy Corporation

June 25, 2008 12:24 ET

Zapata Renews Normal Course Issuer Bid

CALGARY, ALBERTA--(Marketwire - June 25, 2008) - Zapata Energy Corporation (TSX VENTURE:ZCO) 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 864,329 of the issued and outstanding common shares of Zapata (representing approximately five percent of the 17,286,578 common shares issued and outstanding as at June 18, 2008) on the open market. Zapata will pay the prevailing market price of such shares at the time of purchase.

The Bid will commenced on June 23, 2008 and will terminate on June 22, 2009, or such earlier time as Zapata completes or terminates the Bid.

From June 22, 2007 to June 18, 2008, Zapata has purchased 433,000 of its common shares pursuant to the existing normal course issuer bid, of which 426,000 common shares have been cancelled and the remaining 7,000 common shares are awaiting cancellation. The common shares were purchased through the facilities of RBC Dominion Securities Inc.-Capital Markets with an average purchase price $3.03 per share.

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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