Zapata to Spud NW Alberta Well, Plans for 4 More Wells in Fourth Quarter

Zapata has provided a drilling and operations update.

Zapata is in receipt of a license for its deep NW Alberta exploratory well. Drilling of the 4,000 meter test, on a seismically indicated structural high, is expected to commence within a week. This well is expected to take 45 to 60 days to drill and evaluate several highly prospective zones. In addition to this exploratory well, Zapata will be drilling four other wells (3.5 net) in the fourth quarter.

In the third quarter of 2008, Zapata drilled nine wells (8.0 net) resulting in three oil wells (3.0 net), four gas wells (3.0 net), one net injection well and one net abandonment. The gas wells tested at an average rate of 1 mmcf/d on a gross basis. Oil wells tested at an average rate of 60 bbls/d. These wells were tied in during August, September and October.

During the third quarter Zapata’s daily production averaged 3,052 boe/d up 11 percent from second quarter average daily production of 2,757 boe/d.

Zapata continues with the implementation of its waterflood project at Provost to stabilize production and improve pool recovery. Early results have shown positive response from close wells.