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ZAPATA ANNOUNCES INTENT TO ACQUIRE STELLAR'S NATURAL GAS OPERATIONS

 HOUSTON, June 29 /PRNewswire/ -- Zapata Corporation's Tulsa-based subsidiary, Cimarron Gas Companies, Inc., has signed a letter of intent to acquire the natural gas marketing, gathering and processing plant interests of the Stellar Companies, Zapata Chairman and Chief Executive Officer R.C. Lassiter said today.
 "The Stellar acquisition is directly in line with our strategic plan to make Zapata a significant participant in the natural gas services industry. It is an excellent fit with Cimarron Gas Companies, of Tulsa, which Zapata acquired last fall," Lassiter said.
 Located principally in West Texas, the Stellar gathering systems and processing interests are being acquired by Cimarron for a consideration of approximately $16 million. Cimarron is evaluating the subsequent possible sale of Stellar's gas marketing operation. The Stellar Companies are headquartered in Houston.
 Cimarron is commencing its "due diligence" review of the Stellar operations and the parties expect to close the transaction within the next two months.
 Zapata is also in the process of completing negotiations with Corpus Christi-based Energy Industries for the acquisition of that natural gas compression company for $87.5 million. The Energy Industries transaction is expected to be finalized shortly.
 "Natural gas services is an industry segment we believe has significant growth potential and presents many opportunities to improve performance through consolidation," Lassiter said. "We are moving aggressively to position Zapata as a significant participant in the natural gas services industry."
 Headquartered in Tulsa, Okla., Cimarron was acquired by Zapata last fall to serve as the vehicle for Zapata to expand into selected natural gas businesses. Cimarron is involved in the gathering, processing and trading of natural gas and natural gas liquids.
 Zapata Corporation (NYSE: ZOS) is a Houston-based international company that produces natural gas and oil, as well as providing natural gas services including the gathering, processing and trading of natural gas and natural gas liquids. Zapata is also the nation's leading producer of marine protein products from menhaden, and is a major shareholder in Tidewater Inc., the world's largest operator of marine service vessels.
 -0- 6/29/93
 /CONTACT: Barney White, vice president - corporate affairs of Zapata Corporation, 713-940-6240/
 (ZOS)


CO: Zapata Corporation; Stellar Companies ST: Texas IN: OIL SU: TNM

WB -- NY059 -- 6742 06/29/93 13:36 EDT
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Publication:PR Newswire
Date:Jun 29, 1993
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