SANTA ANA, Calif., June 2, 2004 (PRIMEZONE) -- Capco Energy, Inc. (OTCBB:CGYN) announced today that it has completed a private placement of $1,050,000. The proceeds will be utilized primarily in Capco's continuing efforts to convert currently shut in wells to producers in the Gulf Coast Shelf Region, where the Company is the majority owner and operator of some 50 wells. The Company has already converted 4 wells to production since January 1, 2004, with 13 additional wells scheduled to be placed on line during the remainder of this year. The average initial production per well is about 800 mcfd and the average capital cost to place such wells on production is about $60,000/well, excluding work over costs, if needed.
Ilyas Chaudhary, CEO of Capco said, "The Company is staying on course with its operational plan for the year 2004, which consists primarily of placing its non producing wells on production with a targeted year end exit production level of 7.5 mmcfd. Closing of this funding, although small, plays a pivotal role in our development efforts."
The Company owns and operates some 50 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.