Capital City Energy Group Subsidiary Enters Into Definitive Agreement to Acquire OSAGE WIRELINE, INC

PRLog (Press Release) - Jun 09, 2008 -
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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