Capital City Energy Group Acquires Interest in Prolific Fayetteville Shale

COLUMBUS, Ohio--(BUSINESS WIRE)--Capital City Energy Group, Inc. (OTCBB: CETG.OB) announced today that it has acquired an interest in the prolific Fayetteville Shale located in Van Buren and Cleburne Counties in Arkansas. The Company is participating in drilling activity on more than 30,000 acres in these counties. To date, Capital City has participated in drilling 29 producing wells on the properties. Drilling activity is increasing at the rate of 8 to 10 new producing wells per month. The producing wells average over 1 million cubic feet per day of natural gas production.

“We are excited to have gained exposure to this high potential play,” said Capital City Chief Executive Officer Timothy W. Crawford. “The Fayetteville Shale has quickly developed into a large unconventional gas resource and has attracted national attention due to the success in the area of such prominent energy firms as Chesapeake Energy and Southwestern Energy Company. With production increasing rapidly, we believe that the play could be a promising source of revenue.”

Located in northern Arkansas, the Fayetteville Shale is an unconventional natural gas resource which has similar characteristics to the Texas Barnett Shale formation. The thickness of the producing shale zones range from approximately 50 feet to more than 600 feet, and natural gas in place is estimated between 58 and 65 billion cubic feet per square mile.

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 that 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

CEOcast, Inc. for Capital City Energy Group, Inc.
Daniel Schustack, 212-732-4300