HOUSTON, April 26, 2004 (PRIMEZONE) -- CAPCO Energy, Inc (OTCBB:CGYN) announced today, that it has elected to divest its Michigan non-operated properties. The properties have proven developed producing reserves of $7.8 million with PV 10 value of about $5.3 million and an estimated 2004 net revenue of $1.4 million. The properties have additional behind pipe potential.
A substantial portion of the proceeds generated from this sale will be utilized to continue placing shut-in wells on the Company's Gulf Coast Operation into production. Capco Energy Inc. currently owns 49 wells in the Gulf Coast region, along with several miles of sub sea pipelines and 17 offshore platforms. Seven of these wells are producing with the remainder slated for re-completion. Current production level is approximately 2.5 mmcfd and 75 bopd. Production from re-completion is forecasted to be 7.5 mmcfd and 500 bopd by year end 2004 from the Gulf Coast operations.
In addition the Company has non-operated producing properties in Montana, Louisiana and Alabama.
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.
For further information, please visit our website @ www.capcoenergy.com