Capco Board Authorizes Stock Repurchase Program

Capco Energy (Other OTC: CGYN.PK), says that its Board of Directors has authorized the repurchase of up to 10% (approximately 12 million shares) of the Company's common stock during the year 2006. Common stock purchased under this program may be made in the open market or in private transactions, at times and in amounts that management deems appropriate, subject to the availability of financial resources and other considerations. The Company may terminate or limit the stock repurchase program at any time.

Capco is an independent energy company with its focus in the Gulf of Mexico ("GOM") and the shelf properties. Capco either owns, operates or manages 44 wells in GOM of which 9 wells are currently producing. The remaining wells are not on-line for various reasons including land procurement and Katrina/Rita effects. On land, the Company either owns, operates or manages some 353 wells of which 44 wells are producing. The Company's production is derived from its working interest share, as well as production which the Company manages for a joint venture partner with certain rights to acquire the joint venture partner's interest ("Option Interest") as early as mid 2007. The Company's working interest and Option Interest production levels as of year end 2005 were about 11.4 mmcfd and 230 bopd. Capco expects to return to production 12 GOM wells and 50 land wells in the year 2006. Capco is also engaged in exploratory activities where the Company may participate with industry partners and/or generate its own prospects where Capco will drill such prospects by promoting to industry partners to reduce its risk of exposure.