HOUSTON, April 5, 2005 (PRIMEZONE) -- CAPCO Energy, Inc. ("CAPCO") (OTCBB:CGYN) announces that delays have been encountered in further drilling due to higher than expected pressures encountered in the drilling of the exploratory well in OCS GA Block 297, comprising of 11250 acres lease block.
On March 27th CAPCO had reached a depth of 13,361 feet with several hundred feet of drilling remaining. While normal drilling operations were being conducted, CAPCO encountered excessive formation pressures and was unable to drill further despite maximum mud weights as permitted by the Minerals Management Service. CAPCO believes that a positive control over the drilling operation has been established and plans to install a drilling liner capable of withstanding the increased pressures before proceeding to drill to total depth. It is anticipated that the drilling will resume within a few days.
CAPCO is the Operator of the prospect with about 47% Working Interest before payout and 40% after payout.
CAPCO is an E & P company with offshore and onshore operations in the USA, with its head office in Houston, Texas.
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.