<PAGE>
 
                               ZAPATA CORPORATION
 
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
 
NOTE 18. SUBSEQUENT EVENT
 
  On December 15, 1995, Zapata completed the Energy Industries Sale after
receiving stockholder approval. Pursuant to the Purchase Agreement, Weatherford
Enterra purchased from the Company all of the assets of Energy Industries.
Consideration received by the Company was approximately $131 million in cash
and the assumption of certain current liabilities of Energy Industries by
Weatherford Enterra, subject to final post-closing adjustments. The cash
portion of the consideration represented a purchase price of $130 million, as
adjusted by a closing date net adjustment provided for in the Purchase
Agreement. The Energy Industries Sale will result in an after-tax book gain of
approximately $14.0 million which will be recognized by the Company in fiscal
1996.
 
                                       60