Capital City Energy Group’s Hotwell Services Division Grows in Q1-2009
Submitted by SmallCapVoice.com
The Company Significantly Reduced Its Corporate Overhead and Expenses
COLUMBUS, Ohio–(BUSINESS WIRE)–Capital City Energy Group, Inc. (OTCBB: CETG) or “Capital City” announced that its Hotwell Services (”Hotwell”) division had its best quarter in the Company’s history. Hotwell’s revenues for the first quarter ending March 31, 2009 were greater than its total revenues for the entire 2008 year. Hotwell’s first quarter 2009 revenues were up over 50% sequentially versus its fourth quarter 2008 revenues ending December 31, 2008. The division continues to aggressively grow its core business while leveraging its activities within the Capital City group of companies.Joe Sites, the President of Hotwell Services commented on the positive activity in the first quarter, “I am pleased with the overall results of the first quarter and feel optimistic about our steady growth plans through 2009 and into 2010. Our company’s strategy of putting service and quality above all has made an impact on the region and offers a unique value proposition in comparison to our competition. Hotwell Services continues to add value to the clients in the Marcellus Shale by providing the expertise and technology for efficiently completing horizontal wells. We were able to position ourselves strategically in front of the Marcellus Shale play and are routinely providing top tiered wireline services for the leading operators in this blossoming play.”
During the first quarter, Capital City began to meaningfully reduce its headcount and corporate overhead to more effectively deal with the economic downturn and commodity pricing pressure facing many energy companies today. The goal of these changes is to reduce corporate expenses by 50% in 2009 compared to the Capital City’s 2008 numbers.
About Capital City Energy Group Inc.
Based in Columbus, Ohio, Capital City 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.
About Hotwell Services Inc.
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.
“Investing in America’s Energy Future”TM
Visit Capital City Energy Group at http://www.capcityenergy.com.
Safe Harbor Statement
Investors and readers are cautioned that certain statements contained in this document, as well as some statements in periodic press releases and some oral statements of our officers and directors during presentations about our energy funds, along with Capital City Energy Group’s filings with the Securities and Exchange Commission, including the Company’s registration statements, quarterly reports on Form 10-Q and annual report on Form 10-KSB, are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-looking statements include statements that are predictive in nature, which depend upon or refer to future events or conditions, which include words such as “expects”, “anticipates”, “intends”, “plans”, “could”, “might”, “believes”, “seeks”, “estimates” or similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future actions, which may be provided by the Company’s management, are also forward-looking statements as defined by the Act. Forward-looking statements are based on current expectations and projections about future events and are subject to various risks, uncertainties and assumptions about Capital City Energy Group, its technology, economic and market factors and the industries in which the Company does business, among other things. These statements are not guarantees of future performance and Capital City Energy Group, Inc. undertakes no specific obligation or intention to update these statements after the date of this release
Contact:
Capital City Energy Group, Inc.
Daniel R. Coffee, President,
614-310-1614
dcoffee@capcityenergy.com
or
Susan Johnson, Vice President of Administration,
614-310-1614
sjohnson@capcityenergy.com
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