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                               ZAPATA CORPORATION
                         NOTES TO FINANCIAL STATEMENTS

NOTE 1.  FINANCIAL STATEMENTS

          The condensed consolidated financial statements included herein have
been prepared by Zapata Corporation ("Zapata" or the "Company"), without audit,
pursuant to the rules and regulations of the Securities and Exchange Commission.
The financial statements reflect all adjustments that are, in the opinion of
management, necessary to fairly present such information.  All such adjustments
are of a normal recurring nature.  Although Zapata believes that the disclosures
are adequate to make the information presented not misleading, certain
information and footnote disclosures, including significant accounting policies,
normally included in financial statements prepared in accordance with generally
accepted accounting principles, have been condensed or omitted pursuant to such
rules and regulations.  These condensed financial statements should be read in
conjunction with the financial statements and the notes thereto included in
Zapata's latest annual report on Form 10-K.

          In October 1995, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 123, "Accounting for Stock Based
Compensation" ("SFAS 123").  The Company does not intend to adopt the
recognition provisions of the statement but will adopt the disclosure
requirements in fiscal year 1997.


NOTE 2.  DISCONTINUED NATURAL GAS COMPRESSION OPERATIONS

          In September 1995, Zapata entered into an agreement (the "Purchase
Agreement") to sell the assets of its natural gas compression operations to
Weatherford Enterra, Inc. and its wholly owned subsidiary, Enterra Compression
Company (collectively, "Weatherford Enterra").  Pursuant to the Purchase
Agreement, Weatherford Enterra purchased from the Company all of the assets of
its natural gas compression operations for approximately $131 million in cash,
and assumed certain liabilities relating to those operations, subject to post-
closing adjustments which are anticipated to be finalized in March 1996.
Proceeds from the sale were used to repay certain indebtedness of approximately
$26 million and expenses of approximately $1.3 million. The sale closed on
December 15, 1995 after receiving stockholder approval resulting in a pre-tax
gain of approximately $21.5 million or an after-tax gain of approximately $13.2
million.

          The Company's consolidated financial statements reflect the natural
gas compression operations as a discontinued operation.  Summarized results of
the discontinued natural gas compression operations are shown below (amounts in
millions):

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