CAPCO tests potential CBM play in North Texas

Capco Energy Inc., Orange, Calif., said Wednesday it has completed a well drilled to test the coal bed methane (CBM) potential of a 4,131 acre lease in North Texas. Testing will continue for 60 days on the well, which encountered 8 ft of coal at 1100 ft.

March 3, 2004

By OGJ editors

HOUSTON, Mar. 3 -- Capco Energy Inc., Orange, Calif., said Wednesday it has completed a well drilled to test the coal bed methane (CBM) potential of a 4,131 acre lease in North Texas. Testing will continue for 60 days on the well, which encountered 8 ft of coal at 1100 ft.

Several gas pipelines transverse the acreage, giving Capco a sales outlet for the area's produced gas. If commercial quantities of gas are found, Capco plans to increase its land holdings for extended drilling.

The lease also contains conventional gas reserves discovered by utilizing updated seismic interpretation and the drilling of two wells in 2003.