HOUSTON, June 16, 2004 (PRIMEZONE) -- Capco Energy, Inc (OTCBB:CGYN) announces that its board of directors has approved a plan to acquire Company shares in the open market from time to time for the balance of the year 2004.
Ilyas Chaudhary, CEO of Capco said, "Over a period of two years, Capco has successfully transformed into an E & P company from a petroleum distribution company with high debt and cost structure by divesting its non E & P sector. The Company also recorded profit for the first time in the 1st Q 2004, and its cash flow from its E & P activities has been increasing. The market however has not as yet recognized the transformation of the Company and, therefore, the Company's shares are trading at a substantial discount. Buying back shares of the Company will not only be a sound investment for Capco but also demonstrate to the market the Company's commitment to increase shareholder value, while being committed to the reactivation program of the wells in the Gulf Coast. The Company is on target with its development plans in that region."
Capco owns and operates 49 wells in the Gulf Coast Shelf region through 17 platforms and has additional non-operated producing properties in Montana, Michigan, Louisiana and Alabama.
Safe Harbor
The information herein includes forward-looking statements based on assumptions that may prove not to have been accurate. The business activities of Capco Energy, 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.