Capital City Energy Acquires Hotwell Oilfield Services Company
Capital City Energy Group 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."