Founded in 2003 and headquartered in Columbus, Ohio, Capital City Energy Group, Inc. (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. The company is aggressively pursuing their business model by acquiring energy-related businesses that are strategic to the core fund-management business, such as drillers, operators, well service companies, pipelines and lease owners, among others. The company is rapidly growing a portfolio of core areas that provide growth opportunities through drilling, operating, well service companies, acquisitions and fund management. This strategy allows a more opportunistic approach and affords the company greater strategic control over its investments through vertical integration. 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.
Subsidiaries
Avanti Energy Partners
Oil and Gas Operator—Leasing, drillings, production
Avanti serves as a gateway that makes it possible for investors to benefit from the ever-changing opportunities of the oil and gas marketplace by capitalizing on growing demand for these precious commodities. Through superior management, ethical leadership and cutting-edge technology, Avanti presents to investors many unique opportunities with the potential for exceptional returns through the Capital City Energy Funds and other direct-participation programs. Avanti participates alongside numerous joint-venture partners in energy properties that make sound risk/reward sense and that meet its high economic goals.
Eastern Well Services
Upstream—Wireline, fracturing, logging, testing
Eastern is a growing oilfield services company, which will operate in many of the significant oil and natural gas producing regions of the United States, providing oil and natural gas companies with wireline, fracturing, cementing, logging and testing services. Eastern competes with its larger peers by offering technologically advanced equipment and services at competitive prices and highly responsive customer service. The company's growth strategy is centered upon identifying and pursuing opportunities in markets where it can capitalize on its competitive advantages to establish a significant market presence.
Capital City Petroleum
Downstream—Pipeline, transportation, lubricants
Capital City Petroleum manages all operations that take place after the production phase through to the point of sale. These are operations that are near or at the final stage of consumption. The company moves quickly to take advantage of opportunities involving stranded reserves, transportation requirements and high grading of product to be delivered.
Why Invest in Capital City Energy Group, Inc.?
- Capital City Energy Group, Inc. (OTCBB: CETG), an energy company, continues to expand it’s ownership of oil and natural gas production, energy fund assets under management, and a portfolio of drilling and oilfield service companies.
- The Companies revenues are derived from owning and operating oil and natural gas properties, managing energy funds, and owning strategic oil field service companies which provide drilling, well operating, and well completion services.
- Through its Energy Funds Management division, Avanti Energy Partners (a wholly owned subsidiary) establishes and manages funds for investors. The funds are structured as direct participation programs for accredited investors and distributed through regional North American broker-dealers. The funds offer a diversified portfolio of direct investments in oil wells, natural gas wells, pipelines, royalty acreage and mineral rights. Each fund generates income for the Company with an upfront fee on each fund and a 2% annual management fee for the life of each fund.
- Through its Oil Field Services division, Eastern Well Services (a wholly owned subsidiary) provides oil and natural gas operating companies with Drilling, Open Hole Logging, Computerized Logging Products, Pressure Pumping, and a full line of Cased Hole Products. As a contracted Service provider, revenues are generated and paid to the Company whether or not the well is commercially successful.
- The Company's positions include the Texas Barnett Shale natural gas formation, coal bed methane development in southeast Oklahoma along with production from the Woodford Shale, and horizontal drilling development of oil and gas from the Buda and Georgetown formations in southeast Texas.
- Located near Fort Worth, Texas, the Barnett Shale has become one of the premier natural gas producing formations in the United States, estimated to hold some 39 trillion cubic feet of natural gas reserves. Total daily production from the Barnett Shale formation is estimated to exceed 3.5 billion cubic feet.
- Capital City Energy Group just successfully participated in its fourth producing natural gas well drilled in the prolific Barnett Shale formation. The horizontally drilled well located in Tarrant County was recently fracture stimulated and placed into production at an initial rate of 3.2 million cubic feet of natural gas per day. Capital City has also participated in three additional horizontal wells located in Parker and Tarrant Counties, which have been successfully drilled and are awaiting fracture stimulation, after which they will be placed into production by the operator.
- Capital City Energy Group success can be attributed to their ability to bring Capital, Management, and vital Services to oil and natural gas operating companies. This unique capability enables the company to participate in more productive properties which in turn generates significant cash flow.
- Given the robust environment for Oil and Natural gas prices, Capital City Energy Group (OTCBB: CETG) expects significant growth over next several years.
