Zodiac Exploration Announces Release of 2011 Audited Financial Results

Zodiac Exploration Announces Release of 2011 Audited Financial Results

Calgary, Alberta CANADA, December 22, 2011 /FSC/ - Zodiac Exploration Inc. (ZEX - TSX Venture), ("Zodiac" or the "Company") announces that it has filed its audited financial statements for the year ended September 30, 2011 and management's discussion and analysis with 2010 period-end comparative statements on SEDAR at www.sedar.com.  

Significant items for the year ending September 30, 2011 include the following:

During the period, Zodiac incurred a net loss of $13.8 million and spent $46.4 million on capital expenditures.  Capital expenditures were principally associated with drilling and completing its initial evaluation well in the San Joaquin Basin in California, drilling its horizontal well in the same area, land acquisitions, land lease rentals and acquisition of seismic data.

During the period Zodiac raised approximately $34 million through warrant and option exercises.

As at September 30, 2011, Zodiac had $37.7 million in working capital.
About Zodiac

Zodiac is a Calgary based company formed to explore for and eventually develop and produce oil and gas assets in North America with a focus on the San Joaquin Basin in California.  Zodiac has accumulated a land base of approximately 89,000 net acres in Kings County, California.  Zodiac believes that its acreage position contains both unconventional (low permeability) and conventional prospects.  

For more information, please contact

Zodiac Exploration Inc.         Zodiac Exploration Inc.
Murray Rodgers or         Randy Neely
President & CEO Chief Financial Officer
(403) 444-7844         (403) 444-7848

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view this release as a web page, please click on the following link:
http://www.usetdas.com/pr/zodiac12222011.htm




Source: Zodiac Exploration Inc. (ZEX - TSX-V) http://www.zodiacexploration.ca/
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