Capital City Energy Group Subsidiary Enters Into Definitive Agreement to
Acquire OSAGE WIRELINE, INC.
Acquisition to Be Immediately Accretive
Eastern Well Services, a wholly owned subsidiary of Capital City Energy Group
(OTCBB: CETG), announced today that it has signed a definitive agreement to
acquire Osage Wireline, Inc. ("Osage"), a leading provider of geophysical well
logging services in Northeastern Oklahoma and Southeastern Kansas, for cash and
stock. The acquisition, which is expected to be immediately accretive, is
expected to increase Capital City's gross revenues by approximately 40%.
Osage, founded in 2005 by Mike Mackey, a 27-year veteran of the wireline
industry, has 5 employees and operates two Open Hole wireline trucks, a
comprehensive array of Open Hole logging tools, equipment and related support
vehicles from its facility in Cleveland, Oklahoma. According to Eastern's Chief
Executive Officer, Daniel Coffee, Osage's team and equipment will enhance
Eastern's operational plan by offering Open Hole logging services and extending
our geographic coverage. "Osage is a strong addition to our strategic growth
plan in the Oklahoma and Kansas markets," Coffee said. "I have known Mike
Mackey, his experienced engineers, and personnel for years. I believe Mike's
expertise in this geographic area will be very beneficial as we join forces to
better serve our customers in these regions. We plan on adding Cased Hole and
production logging services to round out Osage's wireline operations."
Eastern Well Services is a growing oilfield service company that operates in
many of the significant oil and natural gas producing regions in the United
States and has recently expanded internationally. Eastern Well Services
provides oil and natural gas companies with wireline, fracturing, cementing,
logging, perforating, and well testing services. The company currently has four
consulting engineers in Botswana, South Africa, working on a project for Saber
Energy.
Eastern's parent company, Capital City Energy Group, 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. Their
strategy is to continue to amass a portfolio of core areas that provide growth
opportunities through drilling, operating, oil field service companies,
strategic acquisitions and fund management.
Visit Capital City Energy Group at www.capcityenergy.com and Eastern Well
Services at www.easternwellservices.com.
Safe Harbor 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.
CEOcast, Inc. for Capital City Energy Group
Daniel Schustack, 212-732-4300
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