Cap Rock Energy Announces Repayment of Beal Bank Loan

Cap Rock Energy Announces Repayment of Beal Bank Loan 


MIDLAND, Texas, Nov. 2  /PRNewswire-FirstCall/ -- Cap Rock Energy Corporation
(AMEX:RKE) announced today that its transmission affiliate has elected to repay
the initial advance of funds and will not proceed with the second phase of
financing with Beal Bank S.S.B.  The initial advance of funds of $14,169,000
was originally due September 9, 2004, and subsequently extended to October 29,
2004.  The collateral, which was composed of a restricted securities account of
$14,169,000, was used to satisfy the debt payment.  The Company believes it has
adequate cash on hand or from operations to fund its operations.  In the event
the Company needs additional capital it believes it has other options
available, which it may pursue, such as obtaining funds from another lender,
entering into a sale leaseback arrangement or selling the transmission system.

Those statements made in this release that are not historical facts are
forward-looking statements intended to be covered by the safe harbor provisions
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934.  Although the Company believes that the assumptions
underlying these statements are reasonable, investors are cautioned that such
forward-looking statements are inherently uncertain and necessarily involve
risks that may affect the Company's business prospects and performance causing
actual results to differ from those discussed in the foregoing release.  Such
risks and uncertainties include, by way of example and not limitation, general
business and economic conditions, regulatory uncertainties and the legislative
environment.  These and other applicable risks and uncertainties are more fully
explained in the Company's latest filings with the Securities and Exchange
Commission.  The Company undertakes no obligation to update any forward-looking
statements in this release, whether as a result of new information or future
events. 

DATASOURCE: Cap Rock Energy Corporation



CONTACT:  Valerie Newsom of Cap Rock Energy Corporation, [phone],

or  

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