HOUSTON, Feb. 10, 2005 (PRIMEZONE) -- CAPCO Energy, Inc ("CAPCO") (OTCBB:CGYN) announces the purchase of Exxon Mobil Corporation's (ExxonMobil) High Island Block 196 field area interests, located in federal waters of the Gulf of Mexico. The acquisition includes the producing field interest in Lease OCS-G 6168 along with the associated field infrastructure located at High Island Block 176. The field has produced in excess of 70 bcf of gas to date from multiple reservoirs and is currently producing approximately 2.4 mmcfd and 20 bcpd from three wells. CAPCO plans to be the Operator of the field.
The purchase price of the property was $4.0 million. Additionally a $3.5 million bond was posted with the MMS. Funding for the acquisition, including bond deposits, was provided by an investor group, who will initially own the entire acquired interest. After meeting certain covenants, the investor group will retain 1/3rd of the production income and CAPCO will hold a 2/3rd interest in the production income. In addition, CAPCO has the right to acquire the investor group's remaining 1/3rd interest for a predetermined purchase price within a prearranged time period.
CAPCO is an E& P company with offshore and onshore operations in USA, with its head office in Houston, Texas.
For further information please go to our website: www.CAPCOenergy.com or contact Brenda Ruark @ 713 622 5550.