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with the Company's oil and gas operations. Revenues of $36.7 million and an 
operating loss of $11.2 million in the fiscal 1995 third quarter compared to 
revenues of $64.7 million and an operating loss of $18.5 million in the 1994 
third quarter. The decrease in revenues from the prior year reflects the 
Company's decision to decrease natural gas trading activity in its gathering and
processing operations.

     Year-to-date, fiscal 1995 revenues of $126.6 million, an operating loss of 
$11.5 million and net income of $5.4 million compared to fiscal 1994 revenues of
$192.1 million, an operating loss of $17.4 million and net income of $10.0 
million.

MARINE PROTEIN--As a result of the Company's decision to retain the marine 
protein operations, the net assets and results of marine protein's operations 
for all periods have been reclassified from discontinued operations to 
continuing operations and the $8.9 million after-tax loss on disposition 
recorded September 1994 has been reversed in the current quarter. As a result of
adopting SFAS 121, the Company recorded a $12.6 million pretax provision for 
asset impairment to reduce its marine protein assets to their estimated fair 
market value. SFAS 121 requires companies to write down assets to their 
estimated fair market value when assets are determined to be impaired.

     Reflecting the provision for asset impairment, revenues of $21.7 million 
and operating loss of $10.4 million in the third quarter of fiscal 1995 compared
unfavorably to revenues of $19.7 million and operating income of $2.1 million in
the third quarter of 1994. Current quarter sales volume of fish oil was double 
the prior-year period level while fish meal sales volume was 14% lower in the 
current quarter as compared to the prior-year quarter. The average price for 
fish oil increased to $349 per ton in the third quarter of fiscal 1995 from $302
per ton in the 1994 third quarter; fish meal prices averaged $355 per ton in the
1995 period and $346 per ton in the 1994 period. The fiscal 1995 fish catch is 
approximately 22% lower than the fiscal 1994 fish catch due principally to 
inclement weather conditions that hampered fishing during the current quarter.

     Reflecting the effects of the provision for asset impairment and the lower
fish catch, year-to-date fiscal 1995 revenues of $61.3 million and operating
loss of $8.6 million compared unfavorably to fiscal 1994 revenues of $62.3
million and operating income of $6.0 million. Fiscal 1995 sales volume of fish
oil was 6% higher than the fiscal 1994 sales volume while fiscal 1995 fish meal
sales volume declined 3% as compared to fiscal 1994. Year-to-date, fiscal 1995
fish oil prices have averaged $301 per ton versus $317 per ton in fiscal 1994.
Likewise, fiscal 1995 fish meal prices have averaged $347 per ton versus $353
per ton in fiscal 1994.

NATURAL GAS GATHERING, PROCESSING AND MARKETING--Zapata's natural gas gathering,
processing and marketing operations are conducted through Cimarron Gas Holding 
Company and its subsidiaries (collectively, "Cimarron"), which were acquired 
early in fiscal 1993. As a division of Zapata, Cimarron's operations involve two
major categories of business activities: the gathering and processing of natural
gas and its constituent products and the marketing and trading of natural gas 
liquids (NGL's).

     Revenues and operating results for the three-month and nine-month periods 
ended June 30, 1995 and 1994 are presented in the following table by major 
category, in thousands.

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