CAPCO Energy Announces Year 2004 Results


HOUSTON, May 11, 2005 (PRIMEZONE) -- CAPCO Energy, Inc. (OTCBB:CGYN) today announced increased revenues and profits from continuing operations for the year ended December 31, 2004.

The Company had gross sales and income from continuing operations, consisting principally of oil and gas production activities, of $5.3 million and $725,000, respectively, for the year 2004. For the year 2003, the Company reported gross sales of $3.1 million and income from continuing operations of $46,000.

The Company's production volumes increased to 143,300 barrels of oil equivalent in year 2004 from 108,000 barrels of oil equivalent in 2003. Production from property acquisitions in Montana and the Texas Gulf Coast in late 2003 were responsible for the production increases.

Included in the results of operations for year 2004 are gains in the amount of $974,000, resulting from a sale of land and the Company's disposition of non-operated oil and gas properties.

Ilyas Chaudhary, CEO of Capco, said, "In the year 2004, the Company raised capital through equity placements and the sale of non core assets to provide funding for our expanded operations in the Texas Gulf Coast Region. These actions helped to strengthen the Company's balance sheet at year end as indicated by the independent accountants' unqualified report for the year 2004."



 Statements of Operations 
 Summary Years Ended December 31, 2004 and 2003 
 (Dollars in thousands, except per share data)

                                             2004              2003
                                            ------            ------
 Sales                                     $ 5,255           $ 3,148
 Gross profit                                2,268             1,618
 Income from continuing operations             725                46
 Loss from discontinued operations,
   including loss on disposal of
   discontinued operations                      --            (1,994)
 Net income (loss)                         $   725           $(1,948)
 Earnings (loss) per share-basic:
   Continuing operations                   $  0.01           $    --
   Net income (loss)                       $  0.01           $ (0.03)
 Weighted average common share
   and common share equivalents-
   basic                                96,067,502        77,897,657


 Balance Sheet Summary
 December 31, 2004
 (Dollars in thousands)

 Current assets                                              $  3,833
 Oil and gas property, full cost pool method, net               9,197
 Assets attributable to businesses sold under contract          4,063

 Other assets                                                   1,007
                                                               ------
 Total assets                                                $ 18,100
                                                               ======



 Current liabilities                                         $  3,903

 Long-term debt and liabilities                                 4,585
 Liabilities attributable to businesses sold under contract     4,346
 Deferred tax liability                                            27
 Total stockholders' equity                                     5,239
                                                               ------
 Total liabilities and stockholders' equity                  $ 18,100
                                                               ======

Safe Harbor Statement under the Private Securities Litigation reform Act: The information herein contains forward-looking statements based on assumptions that may prove not to have been accurate. The business activities of CAPCO, 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. These and other risks are identified in our SEC filings and should be considered in evaluating the forward-looking statements made herein. These risks could cause actual financial results to vary from those anticipated.



            

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