HOUSTON, May 24, 2004 (PRIMEZONE) -- Capco Energy, Inc. (OTCBB:CGYN) today announced increased revenues and profits from continuing operations for the first quarter ended March 31, 2004.
The Company had gross sales and income from continuing operations, consisting principally of oil and gas production activities, of $1.4 million and $88,000, respectively, for the first quarter of 2004. For the comparable period of 2003, the Company reported gross sales of $689,000 and a loss from continuing operations of ($53,000).
Property acquisitions that closed in the fourth quarter of 2003 were primarily responsible for the increases in revenue and profitability. Revenues from the Montana and Texas Gulf Coast properties totaled $700,000 during the quarter. Production quantities, expressed in barrels of oil equivalent ("BOE") increased from 20,204 BOE in 2003 to 41,385 in 2004.
Operations from the Company's petroleum products distribution activities, reported as discontinued operations, resulted in a loss of ($517,000) for the first quarter of 2003. The Company divested of the discontinued business interests effective September 30, 2003.
Ilyas Chaudhary, CEO of Capco, said, "We are very pleased with the reported operating results from our oil and gas production activities. The acquisitions that closed in late 2004 made significant contributions to our profitability and cash flow. We anticipate additional increases in revenues as we implement plans for remedial and workover operations on our properties over a period of the next several months."
Statements of Operations Summary
Three Month Periods Ended March 31,
2004 and 2003 (Dollars in thousands, except per share data)
2004 2003
------ ------
Sales $ 1,364 $ 689
Gross profit 662 279
Income (loss) from continuing
operations 88 (53)
Loss from discontinued operations -- (517)
Net income (loss) 88 (570)
Earnings (loss) per share-basic:
Continuing operations $ -- $ --
Net income (loss) $ -- $ (0.01)
Weighted average common share
and common share equivalents-
basic 94,855,729 77,115,252
Balance Sheet Summary
March 31, 2004
(Dollars in thousands)
Current assets $ 737
Oil and gas property, full cost pool method 10,156
Assets attributable to businesses sold under contract 4,013
Other assets 1,494
Total assets $ 16,400
Current liabilities $ 2,720
Long-term debt and liabilities 4,883
Liabilities attributable to
businesses sold under contract 4,346
Deferred tax liability 437
Total stockholders' equity 4,014
Total liabilities and stockholders' equity $ 16,400
Safe Harbor Statement under the Private Securities Litigation reform Act: Statements in this release looking forward in time involve risks and uncertainties discussed here and in the Company's filings with the Securities and Exchange Commission, including uncertainty regarding future revenue and integration. This 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.
For further information please contact Brenda@capcoenergy.com or visit the Company's website at www.capcoenergy.com.