COLUMBUS, Ohio — (BUSINESS WIRE) — Capital City Energy Group Inc. (OTCBB: CETG) continues to expand in the domestic energy space with its strategic acquisition of Hotwell Services Inc., an emerging oilfield service company operating in the Appalachian Basin.

The addition of Hotwell Services, Inc. to the Capital City Energy Group portfolio of operating subsidiaries will significantly contribute to the Company's value proposition for clients, shareholders and employees.

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.

Hotwell Services Inc. specializes in wireline operations that include down-hole formation evaluation, perforation and well completion. The company utilizes industry-leading technology and a commitment to data integrity to provide superior efficiency and reliably accurate results. It operates several wireline trucks primarily from facilities that are strategically located in Delmont, Pa. and Clarksburg, W.Va. The company's clients include many of the nation's preeminent, Independent Oil & Gas Producers.

Hotwell Services Inc. is led by its president, Joseph Sites, who founded Hotwell Services in November of 2007. A Pennsylvania native with a degree in Chemical Engineering from the University of Pittsburgh, Joseph has a record of achievement in both publicly held (Schlumberger Limited) and privately held (J-W Wireline Company) oilfield service firms. Mr. Sites possesses domestic and international experience in all facets of the wireline business including field engineering, operations management, personnel development and business development. 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.

"Our acquisition of Hotwell reflects the execution of our strategic plan to develop a portfolio of core areas that provide growth opportunities in all facets of the oil and natural gas industry," said Timothy Crawford, CEO of Capital City Energy Group. "Geographically, Hotwell is tactically situated in an area of the country where the oil and natural gas fields are close to market."

Hotwell will continue to operate under its current name and management team. The acquisition provides the necessary infrastructure and support for the company to accelerate its ambitious growth plans in the Appalachian Basin.

"We expect this exciting new venture and our bold plans for growth to further position Capital City Energy Group as an innovative and influential player in the oil and natural gas industries," Crawford said.

"This is a tremendous opportunity for Hotwell Services, Capital City Energy Group and the shareholders in each company," Joseph Sites, president of Hotwell Services. "By drawing on the resources and advantages of each company, we are all poised for great success."

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 grass-roots drilling, operating, 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.

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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
Tim Crawford
614.310.1614
tcrawford@capcityenergy.com