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     Until such time that repairs to additional wells in the Wisdom gas field
can be effected and production restored, revenues from domestic oil and gas
operations will be based on significantly lower production quantities than in
prior years.

     Year-to-date fiscal 1994 revenues of $6.3 million and operating income of
$640,000 compared unfavorably to the 1993 revenues of $12.4 million and
operating income of $4.4 million as a result of the lower natural gas
production.

Marine Protein - Revenues of $21.9 million and operating income of $2.1 million
for the second quarter of fiscal 1994 compared favorably to the 1993 second
quarter revenues of $9.7 million and operating income of $434,000.  The improved
results were achieved by increased sales volumes which resulted from higher
levels of inventories which were carried over from the fiscal 1993 fishing
season.  Compared to the year-earlier period, sales volume of fish meal during
the second quarter of 1994 was 64% higher while the average per ton price of
$359 was 9% lower.  Likewise, fish oil volumes increased significantly although
the average per ton price of $322 was 27% lower.

     As a result of increased sales volumes, year-to-date fiscal 1994 revenues
of $42.6 million and operating income of $3.9 million compared favorably to the
1993 revenues of $22.7 million and operating income of $947,000.

Recently Issued Accounting Standards

     In November 1992, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 112, "Employers' Accounting for Post-
employment Benefits," which will require the recognition of an obligation by
employers who provide benefits to former or inactive employees after employment
but before retirement.  Adoption of the new standard by the Company is required
no later than the fiscal year ending September 30, 1995.  Based on existing
conditions and a preliminary review, management believes adoption of the new
standard will not have a material impact on the Company's results of operations
or financial position as the Company currently provides post-employment benefits
on a very limited basis.

     In May 1993, the Financial Accounting Standards Board issued Statement of
financial Accounting Standards No. 115, "Accounting for Certain Investments in
Debt and Equity Securities" ("SFAS 115"), which addresses the accounting and
reporting for investments in equity securities that have readily determinable
fair values and for all investments in debt securities.  Adoption by Zapata is
required no later than the fiscal year ending September 30, 1995.  Zapata
currently owns approximately 673,000 shares of Tidewater common stock which has
a book value of approximately $7.9 million.  Upon adoption of SFAS 115, this
security would be reported at fair value and any unrealized gain or loss
recorded as a separate component of stockholders' equity (net of deferred income
taxes).  If Zapata had implemented the new standard at March 31, 1994, an
adjustment would have been made to increase other assets by $5.2 million, with a
corresponding decrease of $1.8 million to the deferred income tax asset and an
increase of $3.4 million to stockholders' investment for the unrealized
appreciation.

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