ORANGE, Calif., March 3, 2004 (PRIMEZONE) -- CAPCO Energy, Inc (OTCBB:CGYN) announced today that it has completed a well drilled to test the Coal Bed Methane potential in a 4,131 acre lease in North Texas. The test well encountered about 8 feet of coal at 1100 feet. The well will be completed, and the testing phase will commence for the next 60 days. Several gas pipelines pass through the acreage giving the ability to sell all produced gas from this region. If the well produces commercial quantities of gas after the "dewatering" phase, the Company plans to increase its land position for an extended phase of drilling. The lease also contains conventional gas reserves discovered by utilizing updated seismic interpretation and the drilling of two wells in 2003.
Ilyas Chaudhary, CEO of CAPCO said that, "From the test results it is possible that this acreage is blanketed with a large coal bed formation and also that this is believed to be the first test of its kind in this North Texas region. Management's identification of this opportunity and further development is inline with the Company's strategy."
The Company owns and operates 43 wells in the Gulf Coast Shelf region through 17 platforms and has additional non-operated producing properties in Montana, Michigan, Louisiana and Alabama.
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.