CALGARY, ALBERTA--(April 14, 2010) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Zapata Energy Corporation ("Zapata" or the "Company") (TSX VENTURE:ZCO) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by National Bank Financial Inc. and including FirstEnergy Capital Corp., Macquarie Capital Markets Canada Ltd., GMP Securities L.P., CIBC World Markets Inc., Cormark Securities Inc., Peters & Co. Limited and Wellington West Capital Markets Inc. to issue, on a bought deal basis, 6,945,000 common shares ("Common Shares") at a price of $7.20 per Common Share for aggregate gross proceeds of approximately $50,004,000.
Zapata has also granted the underwriters an option (the "Over-Allotment Option") to purchase up to an additional 1,042,000 Common Shares to cover over-allotment, if any, at a price of $7.20 per Common Share for additional gross proceeds of approximately $7,502,400. The Over-Allotment Option is exercisable in whole or in part for a period of 30 days following closing of the Offering.
Proceeds of the offering will be used for the expansion of the capital program, repayment of debt and general corporate purposes. The Common Shares will be offered in certain provinces of Canada by way of a short form prospectus.
Closing is expected to occur on or about May 5, 2010 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.
The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
ADVISORY: This press release contains forward looking statements. More particularly, this press release contains statements concerning the anticipated closing date of the offering and the anticipated use of the net proceeds of the offering. Although Zapata believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Zapata can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The closing of the offering could be delayed if Zapata is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The offering will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the offering will not be completed within the anticipated time or at all. The intended use of the net proceeds of the offering by Zapata might change if the board of directors of Zapata determines that it would be in the best interests of Zapata to deploy the proceeds for some other purpose, such as an acquisition. The forward looking statements contained in this press release are made as of the date hereof and Zapata undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For more information, please contact
President & CEO
(403) 457-2251 (FAX)
Zapata Energy Corporation
Chief Financial Officer
(403) 457-2251 (FAX)