CAPCO Acquires Producing Leases in the Gulf of Mexico

Capco Energy, Inc. has closed on an acquisition from Dominion and others in the Brazos field, offshore in Matagorda County, Texas. After divesture of minor interests, the Company shall retain a 65% working Interest and shall be the operator of the field. The current production from the field is 2000 mcfd from two wells and the balance of 20 wells are non producing. Further evaluation is underway to return to production the balance of the wells after review of the production files and well logs.

Concurrent with this acquisition, the Company has employed competent and experienced personnel to operate this field and other Company activities from Houston, TX.

Ilyas Chaudhary, CEO of Capco, said, "This acquisition shall be the back bone of the Company's future growth as it provides a considerable upside for future completions behind pipe and developmental drilling. The Company's plan is to utilize its operational capabilities in exploitation, exploration and curtailment of costs."