Capital City Energy Group's Working Interest in Powder River Basin Produces Record Oil Production

COLUMBUS, Ohio--(BUSINESS WIRE)--Capital City Energy Group Inc. (OTCBB: CETG) announced today that its working interest in Niobrara County, Wyoming located in the Powder River Basin produced a record 1,509 barrels of oil in July. Capital City owns Net Revenue Interests ranging from 68-79% in these four wells, the Sally, (2 wells) Wyoming Federal and Reed.

“We are excited to report strong production increases at these promising wells in the Powder River Basin,” said Timothy Crawford, CEO of Capital City. “These properties reflect our acquisition strategy to acquire interests in low-risk oil and gas producing assets to generate strong cash flow. We continue to seek ways to add to our asset base in this prolific area.”

Recently, the Company announced that its wholly owned subsidiary, Avanti Energy Partners LLC, will complete plans for a five-well natural gas drilling program in the fourth quarter and commence drilling in the first quarter of 2009. The drilling package will target the Clinton Sandstone in the Appalachian Basin.

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 is evolving 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 & natural gas companies. Their 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.

"Investing in America's Energy Future"

Visit Capital City Energy Group at www.capcityenergy.com.

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

Capital City Energy Group
Tim Crawford, 614-310-1614
tcrawford@capcityenergy.com