HOUSTON, April 12, 2005 (PRIMEZONE) -- Capco Energy, Inc ("Capco" or "the Company") (Nasdaq:CGYN) announces that due to excessive gas pressures encountered at 13,350 feet, the Company has decided to sidetrack from the existing well bore and re-drill the entire section from approximately 8,500 feet to approximately 14,000 feet. During and after the drilling operation Capco will log and test zones of interest as planned in the well prognosis.
These measures are been taken after numerous attempts to drill through the over pressured zones failed. Capco is the operator of the prospect with about 47% working interest before payout and 40% after payout.
Mike Myers, President of Capco commented, "We have experienced recent delays due primarily to certain unexpected factors, including excessive gas pressures. Capco continues to take all measures to run a safe, legal, and rewarding operation. We expect to complete the drilling operation within two weeks."
Capco is an E&P company with offshore and onshore operations in the USA. Its head office is in Houston, Texas.
The information herein contains forward-looking statements based on assumptions that may prove not to have been accurate. The business activities of Capco, as usual to its industry, are subject to many risks both calculable and incalculable. Included in these risks are oil and gas prices, the need to develop replacement reserves, the reliability of reserve estimates, and the feasibility of extracting reserves, environmental risks, drilling and operating risks, and the ability of the Company to implement its business strategy.
For further information regarding the Company please go to our website: www.capcoenergy.net or contact Brenda Ruark @ 713 622 5550.