HOUSTON, Sept. 21, 2004 (PRIMEZONE) -- CAPCO Energy, Inc. (OTCBB:CGYN) announces that the Z-3 well drilled in the Green Ranch prospect as earlier announced, flowed an initial production rate of 500,000 cubic feet of gas and 200 barrels of water per day from lower Caddo at a depth of about 4000 feet. On sustained bases, the Company expects a production rate of about 300,000 cubic feet and 100 barrels of water per day. The well is currently in the process of being connected to a gas pipeline in close proximity to the well. Water produced shall be trucked at a cost of $0.25 per barrel. Further the Company plans to convert an existing well to a salt water disposal well to minimize water production costs. Only one half of the lower part of the sand has been perforated and the upper part shall be perforated upon depletion of the current perforations. The Company has a 92% interest in the 4,100 acres prospect.
Ilyas Chaudhary the CEO of CAPCO said "Very pleased with the results. If the well produces sustained commercial quantities of gas, then additional wells are planned to be drilled on this prospect to fully develop the Lower Caddo."
CAPCO owns and operates 49 wells in the Gulf Coast Shelf region through 17 platforms, has onshore leasehold interests in Texas and has additional non-operated producing properties in Montana, Michigan 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.