Capital City Energy Group, Inc. (OTCBB: CETG)

Based in Columbus, Ohio, Capital City Energy Group (OTCBB: CETG) is a diversified oil and natural gas company with three separate divisions. Capital City has evolved from being an innovative leader in the design, management and sponsorship of retail and institutional direct participation energy programs to become one of the few vertically integrated independent oil and natural gas companies, which is publicly-traded. Its strategy is to continue to grow a portfolio of core areas which provide growth opportunities through drilling, operating, oil field service companies, acquisitions and fund management. The company calls this strategy its “Triad” business model, which consists of: Fund Management, Principal Investments and Strategic Acquisitions of energy related companies.

CETG is continuing to aggressively pursue its Triad business model by acquiring energy-related businesses that are strategic to the core fund management business such as drillers, operators, service companies, pipelines, and lease owners, among others. The combination of the Triad strategy is allowing CETG to become more opportunistic and afford the company greater strategic control over its investments through vertical integration. The direct ownership in the full spectrum of assets within the energy industry transforms Capital City Energy Group into a more dynamic and full-service energy company.

On December 31, 2008, Capital City Energy completed the acquisition of Hotwell Services Inc., or “Hotwell” an emerging oilfield service company operating in the Appalachian Basin. Capital City purchased Hotwell for $5 million (USD), through the issuance of 2.78 million shares of restricted common stock valued at $1.80 per share. Based on current projections, Hotwell could add an additional $2,000,000 in gross revenue per month and $700,000 per month in net cash flow for 2009.

The Hotwell acquisition establishes CETG as a preferred provider of horizontal logging and well completion services, the optimal method of hydrocarbon extraction for the much publicized, domestic natural gas play, the Marcellus Shale.

Based in Delmont, Pa. and Clarksburg, W.Va., Hotwell Services Inc. is a full service wireline company servicing the northeast region of the U.S. The company provides industry-leading technology and ensures data quality for formation evaluation (lithodensity, nuclear, resistivity) and cased hole evaluation (pulsed neutron, production logging strings). The company’s strategy is to build the newest, state-of-the-art fleet of cranes, pressure equipment and wireline trucks and furnish the operating companies with the most experienced and trained engineers with an average of 20 years local experience with independent and major engineers.

NOTE: A June 2008 S&P Stock Report put CETG's Tangible Book Value Per Share at $3.57. That was BEFORE its acquisition of Hotwell Services, Inc.

<<<Spacer>>>

Capital City Energy's Goals and Objectives

Our goal is to build shareholder value by

• Meeting the investment community’s need for energy opportunities
• Owning and managing a portfolio of energy properties
• Strategic acquisitions and the management of energy related companies

Capital City Energy Group’s Drivers for Success

• Scalable growth business model
• Strength and vision of management team
• Proprietary relationships with operator partners
• Expansion through strategic acquisitions
• Earnings growth through economies of scale and management efficiencies

"Our vision is to rapidly grow shareholder value through our “Triad” business model"

Recent News from CETG

Press Release 
Source: Capital City Energy Group, Inc.
Monday January 5, 9:27 am ET

COLUMBUS, Ohio--(BUSINESS WIRE)--Capital City Energy Group, Inc. (OTCBB: CETG - News) or “Capital City” announced that as of December 31, 2008 it has completed the acquisition of Hotwell Services Inc., or “Hotwell” an emerging oilfield service company operating in the Appalachian Basin. Capital City purchased Hotwell for $5 million (USD), through the issuance of 2.78 million shares of restricted common stock valued at $1.80 per share. Based on current projections, Hotwell could add an additional $2,000,000 in gross revenue per month and $700,000 per month in net cash flow for 2009.

The acquisition establishes CETG as a preferred provider of horizontal logging and well completion services, the optimal method of hydrocarbon extraction for the much publicized, domestic natural gas play, the Marcellus Shale. Most importantly, the management acquired through the acquisition of Hotwell are some of the Appalachian Basin’s most talented and respected field services professionals. The strategic purchase provides the requisite infrastructure to support the Company’s aggressive growth plan in the Appalachian Basin, and specifically in the prolific Marcellus Shale formation, through its locations in Delmont, Pennsylvania and Clarksburg, West Virginia. The Company anticipates launching four additional bases of field services operations in the Basin during fiscal year 2009 to service the extensive backlog of existing clients as well as the Company’s previously announced E&P activities.

“We believe the acquisition of Hotwell Services Inc. will significantly accelerate the Company’s financial prospects and positions it as a rapidly growing provider of energy field services, specifically within the Appalachian Basin,” said Timothy Crawford, CEO of Capital City Energy Group. “In addition to expanding geographically, the transaction brings an experienced and accomplished management team led by Joseph Sites. We welcome all of the stakeholders of Hotwell to the Capital City family.”

In connection with the transaction, Mr. Sites, founder of Hotwell Services, was named to the position of Executive Vice President of the parent Company Capital City Energy Group, Inc. and has been appointed to the Company’s Board of Directors. Mr. Sites will also remain the President of Hotwell Services, Inc. which will continue to operate under its current name along with its existing management team and field services personnel. Throughout his professional career, Mr. Sites has been routinely recognized as a leader in service quality and safety – the two cornerstones of successful oilfield operations.  MORE
<<<Spacer>>>

Capital City Energy Management

 
TIMOTHY W. CRAWFORD 
Chief Executive Officer

Timothy W. Crawford co-founded the firm and serves as Chairman and Chief Executive Officer of the Company. His primary responsibility is to manage and oversee the operations of the firm and its subsidiaries.

He was responsible for the design and implementation of the firm’s first energy fund offered to individual investors. Prior to becoming CEO of the firm he was CEO and co-founder of Capital City Partners, a regional financial service firm and currently a majority shareholder of the Company. Before co-founding Capital City Partners, Mr. Crawford held the position of Senior Vice President for McDonald Investments Inc, a KeyCorp Company. He was the Managing Director for a group of professionals that consulted for businesses and high net worth individuals to review and explore alternatives to their investments, banking and insurance needs.

Before joining McDonald Investments, Mr. Crawford spent 12 years at Banc Stock Financial Services, Inc., a wholly owned subsidiary of The Banc Stock Group currently known as Diamond Hill Capital Management, Inc. (DHIL). While with the company, he participated in the original equity offering for the Banc Stock Group before assisting in taking the firm public. He worked in their investment banking division specializing in the placement of first and secondary offerings for banks and thrifts such as Southeast Commerce Bank (now e-bank.com in Atlanta), Northern Star Bank (NSBK), Bank of Godfrey, First Capital Bank, and a secondary offering for Citrus Bank just to name a few.

He is a member of The President’s Associate Council at Cedarville University and attended The Ohio State University where he studied Finance and Economics.

DOUG CRAWFORD
Chief Accounting Officer and Controller

Doug Crawford joined Capital City Energy Group in September of 2008 as Chief Accounting Officer. Mr. Crawford will oversee all accounting functions in the North Canton, Ohio office.

Prior to joining Capital City Energy Group Mr. Crawford was a partner at a startup software company called Imadex, a division of Ports Petroleum Co. Inc. which provided document imaging solutions to small and mid-sized businesses.

From 1995 to 2004 Mr. Crawford was the Chief Financial Officer for Ports Petroleum CO. INC., located in Wooster, Ohio, a $750 million wholesaler and retailer of petroleum products with more than 80 locations in 15 states and wholesale clients in 20 states. While at Ports Petroleum, Mr. Crawford directed all aspects of corporate finance, including financial strategies, accounts payable/receivable, payroll, HR, general ledger, monthly reporting, IT and tax functions. Mr. Crawford also secured external financing, managed auditing, legal, insurance, and corporate investments.

Mr. Crawford received his Bachelor of Business Administration in Accounting from Kent State University.

DANIEL R. COFFEE
Chief Operating Officer and Director of Acquisitions

Daniel R. Coffee joined the firm in 2007 as Chief Operating Officer. He is responsible for locating and analyzing oil & gas companies for acquisition, in addition to the acquisition of oil & gas properties for the company’s portfolio and for the Capital City Energy Funds.

For the past ten years Mr. Coffee worked at Superior Well Services, LTD. (SWSI) on their management team as Manager of Business Development & Corporate Acquisitions / Wireline Division Manager / Corporate Radiation Safety Officer. He was an integral part of the management team which built a multi-million dollar integrated oil field service company from 26 employees at one service facility to an organization now employing over 1,300 people in 18 service facilities throughout the country. His expertise and responsibilities with the company was in business operations and management, business development and acquisitions, with an emphasis on geophysical engineering based on over 28 years of experience in these disciplines. His principal responsibility was for the growth and development of the company by locating, analyzing, and acquiring companies for future expansion, in addition to the acquisition of needed oil field service equipment. Additionally, he provided support and direction along with the division managers to logistically coordinate equipment and personnel, as well as providing assistance to the sales managers regarding the development of market surveys.

In the mid 90’s he was a Field Sales / Logging Specialist for Schlumberger LTD. (SLB). He was a sales manager at the district level where he assisted clients with formation evaluations, coordinated well logging operations, designed and implemented well perforating completions and assisted in problem solving conditions with clients.

Prior to Schlumberger he spent 16 years with Eastern Well Services as a District Manager / Field Engineer. His duties comprised of well logging and perforating operations for clients, directed day to day operations of the geophysical logging company, as well as sales management at the district level.

Mr. Coffee is a Board Member of the Society of Petroleum Engineers (Ohio Chapter), Member of the Ohio Oil and Gas Association and a Member of NACE. He has a Masters degree in Business Administration with an emphasis on Operational Management from American Inter-Continental University.

JOSEPH SITES
Executive Vice President and Director of Acquisitions

Joseph Sites, Executive Vice President joined the firm in 2008.  He is also the founder and President of Hotwell Services, Inc.  Prior to Hotwell, Mr. Sites was the Business Development Manager for J-W Wireline, an $80 Million, 200+ employee logging and perforating wireline business.  His responsibilities included successful implementation of growth and management for the entire wireline division.  During this time Mr. Sites directly expanded their entire operation from 30 to 60+ wireline units making them the fastest growing US based wireline company in 2007.

From 2000 to 2006 Mr. Sites served a multitude of operational roles including Operations Manager for Schlumberger (A $23 Billion, 84,000 employee oilfield services company) in the Barnett Shale.  Mr. Sites created quality control measures which were implemented on worldwide basis.  He was also honored for superior operational execution and safety.  With Schlumberger, Mr. Sites contributed in all regions of the USA and served as Service Quality Manager for Mexico Offshore Operations.  He also developed successful training, calibration standards, quality control and explosives disarming which saved Schlumberger Millions of Dollars.  Mr. Sites holds a BS, with honors, in Chemical Engineering from The University of Pittsburgh.

CHUCK KENDALL
Director of Land Management and Business Development

Chuck Kendall joined the firm in 2008 and serves as Director of Business Development and Land Management.

Mr. Kendall began his career with Giant Petroleum Corp. in Tulsa, OK as a landman and was quickly promoted to Head of Operations. Kendall later formed Petroleum Land Services, which became PetroSearch, Inc. This company provided land related services to oil & gas companies throughout the Appalachian basin. Prior to joining CCEG, Mr. Kendall managed all Ohio lease acquisitions for Schreiner Oil & Gas, Inc. and was responsible for surveying, land title work, and permitting. These include supervision of an 80,000 acre lease acquisition program for Beldon & Blake Corp. He brings over 30 years of experience in the oil & gas industry.

Kendall attended Ashland University in Ohio. 
<<<Spacer>>>

CETG Financial Highlights

<<<Spacer>>>

 

Capital City Energy Group	(OTCBB: CETG)
Recent Price	$1.90
52-Week Range	0.85 - 6.00
Average 3mo Volume	14,216
Shares Outstanding	27,509,240 as of Nov. 06, 2008
Market Cap.	$52.27M approx
State of Incorporation	Nevada
Source:	Yahoo Finance

Company Contacts

8351 N. High Street, Suite 101
Columbus, OH 43235

 Phone: 614-310-1614

---

*** The Bull is Running. ***
There may never be a better time to feature YOUR company
to over 1 MILLION investors.

To learn more about our programs email us directly at info@stockupticks.com

Market Pathways
17595 Harvard Ave., Suite C519 Irvine, CA  92614
949-955-0107

Disclaimer: StockUpTicks.com is a property of Market Pathways Financial Relations Incorporated (MP).  The information, opinions and analysis contained herein are based on sources believed to be reliable but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. Past performance is no guarantee of future results. This report is a paid advertisement and is for information purposes only and should not be used as the basis for any investment decision.  MP has been paid five thousand dollars by Bluewave Advisors for preparation and distribution of this report and other advertising services. Bluewave Advisors was paid forty thousand dollars by Crowne Capital LLC. for their work. This constitutes a conflict of interest as to MP’s ability to remain objective in its communication regarding the subject company.  Write or call MP for detailed disclosure as required by Rule 17b of the Securities Act of 1933/1934.  MP is not an investment advisor and this report is not investment advice. This information is neither a solicitation to buy nor an offer to sell securities but is a paid advertisement.  Information contained herein contains forward-looking statements and is subject to significant risks and uncertainties, which will affect the results.  The opinions contained herein reflect our current judgment and are subject to change without notice. MP and/or its affiliates, associates and employees from time to time may have either a long or short position in securities mentioned.  Information contained herein may not be reproduced in whole or in part without the express written consent of Market Pathways Financial Relations Incorporated.