HOUSTON, May 11, 2005 (PRIMEZONE) -- CAPCO Energy, Inc. (OTCBB:CGYN) today announced increased revenues and profits from continuing operations for the year ended December 31, 2004.
The Company had gross sales and income from continuing operations, consisting principally of oil and gas production activities, of $5.3 million and $725,000, respectively, for the year 2004. For the year 2003, the Company reported gross sales of $3.1 million and income from continuing operations of $46,000.
The Company's production volumes increased to 143,300 barrels of oil equivalent in year 2004 from 108,000 barrels of oil equivalent in 2003. Production from property acquisitions in Montana and the Texas Gulf Coast in late 2003 were responsible for the production increases.
Included in the results of operations for year 2004 are gains in the amount of $974,000, resulting from a sale of land and the Company's disposition of non-operated oil and gas properties.
Ilyas Chaudhary, CEO of Capco, said, "In the year 2004, the Company raised capital through equity placements and the sale of non core assets to provide funding for our expanded operations in the Texas Gulf Coast Region. These actions helped to strengthen the Company's balance sheet at year end as indicated by the independent accountants' unqualified report for the year 2004."
Statements of Operations
Summary Years Ended December 31, 2004 and 2003
(Dollars in thousands, except per share data)
2004 2003
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Sales $ 5,255 $ 3,148
Gross profit 2,268 1,618
Income from continuing operations 725 46
Loss from discontinued operations,
including loss on disposal of
discontinued operations -- (1,994)
Net income (loss) $ 725 $(1,948)
Earnings (loss) per share-basic:
Continuing operations $ 0.01 $ --
Net income (loss) $ 0.01 $ (0.03)
Weighted average common share
and common share equivalents-
basic 96,067,502 77,897,657
Balance Sheet Summary
December 31, 2004
(Dollars in thousands)
Current assets $ 3,833
Oil and gas property, full cost pool method, net 9,197
Assets attributable to businesses sold under contract 4,063
Other assets 1,007
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Total assets $ 18,100
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Current liabilities $ 3,903
Long-term debt and liabilities 4,585
Liabilities attributable to businesses sold under contract 4,346
Deferred tax liability 27
Total stockholders' equity 5,239
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Total liabilities and stockholders' equity $ 18,100
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Safe Harbor Statement under the Private Securities Litigation reform Act: 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. These and other risks are identified in our SEC filings and should be considered in evaluating the forward-looking statements made herein. These risks could cause actual financial results to vary from those anticipated.