CAPCO Announces Managerial and Operational Updates
Capco Energy, Inc. ("the Company") (PINKSHEETS: CGYN) today announces that the Board of Directors of Capco has appointed Mike Myers as the President and CEO of the Company. Mike Myers had resigned the same post due to health reasons as announced on August 12, 2005. The Board of Directors also redefined the operational focus of Capco to be in offshore state waters and onshore E&P activities in the lower 48 states.
Capco also announces the following other operational updates
A) Offshore
a. Sale of certain GOM assets: As previously announced, the Company
is divesting certain assets to Pyramid Petroleum, Inc., for
$11 million dollars. This sale will eliminate long-term debt of
$8.0 Million and pay off $3.0 Million in accounts payable. The
divesture accounts for only about 1/3rd of the Company's proved
reserves of $18.0 Million (as of 1-1-07) therefore there is a
substantial net gain to the Company's bottom line.
b. Brazos LB - Offshore Texas. The company has a total of 27 wells in
this area of which 5 are producing at current production levels of
2.2 million cubic feet of gas per day. The company has recently
purchased additional working interest, thereby raising its interest
to 75% Working Interest in 10 wells, and 100% Working Interest in
17 wells and in their proportionate shares of the 13,000 acre
leasehold. The company plans to place additional wells on
production for a capital cost of $1.5 Million in 1st and 2nd Q
2008. The Company has acquired necessary equipment in order to
carry on this work.
c. Matagorda Island LB - Offshore Texas. The company owns a 100%
Working Interest in 6 wells in this area. These wells shall be
placed on production in the third Q 2008 for estimated costs of
about $1.0 Million.
d. Chandelier/St Bernard Parish - Offshore Louisiana. The Company
owns an after payout interest varying from about 30% to 66% in 4
wells. Only one well is currently producing, post-Katrina. The
plan is to return the remaining three wells on production for a
cost of $1.4 Million.
e. High Island 196 - Offshore Texas, Federal Waters. The company has
an after payout interest of 66% in 3 wells in this block with
current production levels of 1.7 million cubic feet of gas per day.
The gross leasehold is about 5000 acres. No major work is slated
for 2008.
f. Vermillion 112/113 - Offshore Louisiana, Federal Waters: The
Company has an after payout interest of 66.6 % in about 5500
acres of land. Based upon a 3 D interpretation, the reserve
potential exceeds 250 billion cubic feet of gas from two
prospective zones. The company plans to drill this well in the 4th
Q 2008. The gross drilling and completion costs are about $9
Million. The company plans to fund this project by engaging
industry partners.
B) Onshore
a. Caplen Field, Galveston County, Texas. The company has about 62% WI
interest in approximately 3.000 acres and 8 wells in this lease.
Current production after giving effect to the recently tested well
is about 40 bopd from 4 wells. One well is planned to be drilled in
the 1st Q2008. The Company's share of cost is $400,000.
b. The Slick Field Waterflood Unit, Creek County, Oklahoma. The
company has 50% working interest in about 2700 acres with
approximate current production levels of 30 barrels of oil per day
from only 11 wells. The Company expects to acquire the other 50%
Working Interest shortly. There are a total of 115 wells in this
lease and the company plans to reestablish a water flood program in
2008 for a cost of $1.2 Million. The Waterflood is forecasted to
return the production rate to in excess of 200 barrels of oil per
day. That is substantially the same production rate as when the
Waterflood was shut down in 1998.
c. Bandwheel Field, Osage County, Oklahoma. The company has 100%
interest in 1300 acres of land with current production levels of 16
bopd. There are 120 wells on this lease and the Company plans to
continue to place additional wells on production after resolving
certain title issues on the lease.
Commenting on the company's activities the Company, Mr. Mike Myers said, "The Company has successfully weathered its recent problems. After the proposed sale has been completed, the Company will focus on returning its substantial number of wells to production. Additional acquisitions are scheduled in the adjacent regions to build a synergistic operational base. We anticipate increases in cash flow and reserves by implementing this operational plan. Additionally the Company expects to sell certain non core properties to fund its current operations."
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.
For further information about the Company please call Karen Myers (972) 812 8150 or visit our website at www.capcoenergy.net.
Contact:
Karen Myers
(972) 812 8150
Source: Marketwire (December 10, 2007 - 4:00 PM EST)
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