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Wednesday, 08/27/2008 10:44:56 AM

Wednesday, August 27, 2008 10:44:56 AM

Post# of 34
CETG.OB Subsidiaries Help Drive Efficiency and Profitability

Capital City Energy Group Incorporated is an oil and natural gas company that employs a vertical integration strategy to become a leader in the industry. This strategy allows Capital City to run multiple operating companies as wholly-owned subsidiaries in an effort to become one of the largest and most efficient companies in the industry. While many competitors have to pay third party vendors for oil field services, Capital City has the option to go in-house and avoid the expensive and often unnecessary fees typically associated with third party interactions. Working with their subsidiaries on projects also gives them a greater degree of control over the timing and budgets of their projects.

Capital City Petroleum, Avanti Energy Partners and Eastern Well Partners are all companies that were previously acquired and now operate as wholly-owned subsidiaries of Capital City Energy Group. The nature of successfully completing vertical integration of these companies and services allows Capital City Energy Group to continue their smooth operations and maintain high profit margins through efficiency. Through their subsidiaries’ operations, Capital City has access to well operators, drillers, pipelines, and various other energy services at lower costs.

Capital City Petroleum manages all downstream services for Capital City Energy Group. The company is in charge of all operations from the time production is complete until the actual point of sale. Pipeline transportation, lubricants, processing and refining are just a few examples of the operations Capital City Petroleum handles. Other services not covered but needed in the production process are covered by Eastern Well Partners. They provide many necessary services that bring the drilling and exploration stage all the way to production. These services include critical stages such as wireline, fracturing, logging and well testing services.

Avanti Energy Partners is the investment branch of Capital City Energy Group. Avanti uses leading-edge investment strategies and superior fund management in order to make optimal investment choices. These choices have been proven with exceptional returns on investments by Capital City Energy Funds and through selecting promising joint ventures to lock in future income. Avanti also develops and oversees drilling operations performed by any investment ventures.

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