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ZCO.V/ZPTAF.PK $3.86

Zapata Provides Updates on First Half Drilling and Operations
7/21/2008 8:30:04 AM - Market Wire

Drilling & Tie-Ins to Add to Q3 Production

CALGARY, ALBERTA, Jul 21, 2008 (Marketwire via COMTEX News Network) --
Zapata Energy Corporation (TSX VENTURE:ZCO) is pleased to provide an update on its operations and drilling activities in the first half of 2008.

On its May 30, 2008 news release, the Corporation reported that successful Q1 drilling would add approximately 500 boe/d to its production by the end of June 2008. As a result of these significant new volumes brought on stream in the second quarter, Zapata exited Q2 producing in excess of 3,100 boe/d. Zapata's deep well (0.45 net) discovery was placed on production in the last half of June and is presently producing 4,000 mcf and 500 bbls of NGL per day. This production was delayed as a result of weather and surface issues and consequently will have limited effect on second quarter average production. Zapata anticipates average second quarter production sales to be slightly higher than the 2,713 boe/d recorded in the first quarter of 2008.

During the second quarter, Zapata drilled and cased one (0.9 net) well. The balance of the eight-well low risk exploitation program, also delayed by weather and surface issues, will be complete in early August. The initial well in the three-well Southeast Alberta program has just been drilled and cased. The five-well East Central Alberta program is anticipated to commence within a week from today. Completion of all eight wells should occur in the third quarter.

Preparations for Zapata's recently announced deep test in Northwest Alberta are in progress. Well licence and surface lease applications are proceeding as scheduled, and a drilling rig is being sourced for a planned spud date in September. This exploratory well will evaluate a Beaverhill Lake and Blueridge prospect defined by 3D Seismic and numerous shallower zones which produce in the area including the Montney-Doig resource play and the conventional Halfway, Charlie Lake, Fahler and Dunvegan reservoirs. With this well, Zapata will earn all rights in 14 sections of land close to existing facilities with available capacity as well as increase its position in this high impact area.

Zapata is now finalizing plans for an expanded Q4 exploration and exploitation program. Higher commodity prices in the second quarter and continued high commodity prices are anticipated to reflect significantly on Zapata's financial performance and allow expanded drilling efforts while maintaining a solid financial footing.

Zapata's financial results for the second quarter of 2008 will be released in the last half of August. 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.

SOURCE: Zapata Energy Corporation

Zapata Energy Corporation George Paulus President [phone] Email: [e-mail] Website: www.zapata.ca

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