8-K

                  U.S. SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C.

                               FORM 8-K

                             CURRENT REPORT




                  Pursuant to Section 13 or 15(d) of the
                      Securities Exchange Act of 1934





                             October 20, 2000
            ------------------------------------------------
            Date of Report (date of earliest event reported)





                             Capco Energy, Inc.
            -----------------------------------------------------
            Exact Name of Registrant as Specified in its Charter


          Colorado               0-10157               84-0846529
- --------------------------    ---------------     ----------------------
State or Other Jurisdiction   Commission File     IRS Employer Identifi-
     Of Incorporation              Number              cation Number




                       2922 East Chapman, Suite 202
                         Orange, California 92869
            ---------------------------------------------------------
            Address of Principal Executive Office, Including Zip Code


                              (714) 288-8230
               ---------------------------------------------------
               Registrant's Telephone Number, Including Area Code







ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANTS.

(a) On October 19, 2000, McGladrey and Pullen, LLP were terminated as
the independent accountants for Capco Energy, Inc. (the "Registrant"). On
October 20, 2000, the Registrant engaged Stonefield Josephson, Inc. as its
independent accountants.

(b) McGladrey and Pullen, LLP has not issued any opinion for the
Registrant.

(c) The Registrant's Board of Directors made the decision to terminate
its prior accountants and to engage Stonefield Josephson, Inc. in order to
reduce the cost of its audit. The Registrant has no audit or similar
committee.

(d) In connection with the interim period from July 19, 2000 to October
19, 2000, there have been no disagreements with McGladrey and Pullen, LLP on
any matter of accounting principles or practices, financial statement
disclosure or auditing scope or procedure.

(e) The Registrant did not consult with Stonefield Josephson, Inc. with
regard to any matter concerning the application of accounting principles to
any specific transactions, either completed or proposed, or the type of audit
opinion that might be rendered with respect to the Registrant's financial
statements.

(f) The Registrant has requested that McGladrey and Pullen, LLP review
this disclosure and that firm has been given an opportunity to furnish the
Registrant with a letter addressed to the Commission containing any new
information, clarification of the Registrant's expression of its views, or
the respect in which it does not agree with the statements made by the
Registrant herein. Such letter is filed as an exhibit to this Report.

ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS.

(a) EXHIBITS.

Exhibit 16. Letter from McGladrey and Pullen, LLP










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                                SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned, hereunto duly authorized.

                                    CAPCO ENERGY, INC.



Dated: October 20, 2000             By:/s/ Dennis R. Staal
                                       Dennis R. Staal,
                                       Chief Financial Officer




































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EX-16

EX-16

Securities and Exchange Commission
Washington, D.C. 20549

Re: Capco Energy, Inc. (File No. 0-10157)

We have read Capco Energy, Inc.'s statements included under Item 4 in the
attached Form 8-K dated October 20, 2000 and we agree with such statements.

/s/ McGladrey & Pullen, LLP

McGladrey & Pullen, LLP


Anaheim, Ca.