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Capital City Energy Group Completes Acquisition of Hotwell Services Inc.

Publication: Business Wire
Publication Date: 05-JAN-09
Format: Online
Delivery: Immediate Online Access

Article Excerpt
Accretive Acquisition expected to be a significant contributor to 2009 Earnings

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

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