HOUSTON, May 23, 2005 (PRIMEZONE) -- CAPCO Energy, Inc. (OTCBB:CGYN) today announces further information regarding the second well recompletion in its Caplen Field, Galveston County, Texas. The ZF No. 11 is presently flowing oil at an initial rate of 121 barrels of oil per day from a depth of 6,500 feet. The well was originally completed in January 2005 at an initial flowing rate of 160 barrels of oil per day, but production was hampered with sanding problems. A successful "gravel pack" procedure was performed to prevent sand production and permit the flow of oil.
CAPCO had previously acquired a service rig as rigs are in short supply in the area. CAPCO will apply a similar gravel pack procedure for other wells in the field and expects additional development to continue without interruption. CAPCO is the operator of the field and owns a 61% working interest in about 6,000 gross acres of land containing a total of 11 wells. Prior to the recompletion of the ZF No. 11 well, the field had a production level of about 75 barrels of oil per day.
CAPCO is an E&P company with offshore and onshore operations in the USA, with its head office in Houston, Texas.
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.