Zapata Announces Exposure to SemGroup Bankruptcy Filing

CALGARY, ALBERTA–(EMWNews – Aug. 1, 2008) – Zapata Energy Corporation (TSX VENTURE:ZCO) has a potential exposure of up to $4.0 million, primarily in oil sales, to subsidiaries of SemGroup L.P. in Canada for the months of June and July 2008 which could equate to a net income exposure of up to $2.5 million.

On July 22, 2008, certain of the U.S subsidiaries of SemGroup filed for protection under Chapter 11 of the U.S. Bankruptcy Code and two Canadian SemGroup subsidiaries filed for creditor protection under the Canadian Companies’ Creditors Arrangement Act (“CCAA”). Subsequent to this date, most of the remaining Canadian SemGroup subsidiaries have also filed for CCAA protection.

Zapata is currently working with SemGroup and seeking the advice of council to ensure that its exposure is minimized. Zapata is reasonably confident in the ultimate collection of a significant portion of the funds at risk. New marketing arrangements have been made to eliminate further exposure.

The delayed receipt of funds, or even the possible loss of the full amount is not expected to affect Zapata’s operations or its planned capital program.

Zapata will provide further significant information regarding this matter as it becomes available.

In the meantime Zapata is midway through its eight well drilling program and expects to release results next 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.

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.