August 27, 2008
Zapata Releases Operations Update
CALGARY, ALBERTA--(Marketwire - Aug. 27, 2008) - Zapata Energy Corporation (TSX VENTURE:ZCO) is pleased to provide an update on its operations and drilling activities in the first half of 2008.
The majority of capital late in the second quarter was spent on completion and tie in of wells. As a result, exit production at June 30, 2008 was 3,100 boe/d while average production for the second quarter was 2,757 boe/d.
In the second quarter of 2008, Zapata drilled one (0.9 net) well which tested at 1.7 mmcf/d and is now being tied in. The remaining 7 (7 net) wells from the June program were drilled in the third quarter resulting in 4 gas and 2 oil wells, and one was abandoned. The gas wells tested between 700 mcf/d and 2 mmcf/d. Oil wells were tested at rates of 50-100 bbls/d. All wells are currently being tied in and allowing for capacity of pipelines and facilities and good engineering practices, Zapata anticipates exiting the third quarter between 3,500 to 3,600 boe/d.
Zapata received approval for its waterflood at Provost and is now building facilities to implement the waterflood. The waterflood is anticipated to level production declines and improve pool recovery.
Third and fourth quarter budgets are now being reviewed with respect to expanding the 2008 capital program.
Second quarter financials are expected to be released within the week. 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.
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