HOUSTON, Oct. 25, 2004 (PRIMEZONE) -- Capco Energy, Inc. (OTCBB:CGYN) announces the acquisition of a 50% working interest (37.5% NRI) in the Slick Waterflood Unit in Creek County, Oklahoma. The Company will serve as operator of the acquired property which consists of 2680 acres and has current gross production of 15 bopd from 4 wells from the Dutcher zone. From a total of 88 wells, the Company plans to convert 40 wells as oil producers and 40 wells as water injectors. It is anticipated that this project will be completed in six months with expected production levels of about 200 gross bopd after a capital expenditure by the Company of approximately $700,000.
Ilyas Chaudhary, the CEO of Capco said, "The Company plans to maintain 80% gas and 20% oil ratios from its production. Production from the Slick Waterflood Unit will enable us to maintain such ratios as the gas production from our offshore operation increases."
The Company owns and operates 49 wells in the Gulf Coast Shelf region through 17 platforms and has additional non-operated producing properties in Montana and Michigan.
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 contact Brenda Ruark at 281 565 0424 or visit our website: www.capcoenergy.com