Company Information for Cap Energy

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PLUS; CAPP View full financial data

Company Statement

The Company has been established to invest in oil and gas exploration and production assets, particularly focused on North America.

The Company currently has interests in five producing properties in Oklahoma and Texas, USA.

Although the price of oil has increased dramatically over the past year, Cap Energy believes that this is due to strong demand which the industry is struggling to supply, and the price will remain strong for some time to come.  The Company also believes that it will benefit from the relative safety and stability of the USA as an oil producing area, compared to other oil producing regions in the World.

The Company’s strategy is threefold;

• Firstly, to develop a stable oil and gas production base which generates enough income to cover all corporate overhead.
• Secondly, to participate in progressively larger projects involving extensive remedial and new development work which will generate higher profit margins than simple production acquisitions, thereby delivering real net asset growth to shareholders.
• Thirdly, to bring the Company to the AIM market as soon as its asset base is sufficiently large.

Operations and Technology

The Company was incorporated in the UK on 03/02/2005 and has been established to invest in oil and gas exploration and production assets, particularly focused on North America.

The Company initially made  investments in Oklahoma in producing properties which required remedial work in order to become profitable.  It also invested in a drilling venture in Wyoming which was unsuccessful.  Subsequently two small producing properties in Texas were acquired.

Following a review of operations in late 2007, a decision was made to dispose of any properties which either were not performing to expectations or required excessive working capital to achieve suitable profitability, and to concentrate in the short term on acquiring producing properties which would not require immediate remediation.  A majority of the Oklahoma properties were sold for cash in December, 2007, effectively eliminating operating losses.

In early 2008 a small funding was made to increase working capital, and evaluation of potential producing acquisitions began.  In December 2008, it was announced that the company had acquired interests in the Starks Dome Oilfield and the Iberia Dome Prospect in Southern Louisiana.  This acquisition represents a major step change for CAP.  Apart from the fact that the producing interests are a scale larger than its existing assets, there is potential for many years’ drilling and recompletion activity at Starks Dome at base costs, with progressively deeper and more prolific production potential as oil prices and economics allow.  The Iberia Dome project has the potential to make a substantial  further increase in CAP’s asset value, combined with a relatively low cost/low risk first phase. 

The Company plans further funding to enable further development on these two projects to proceed in the second half of 2009.

Geographical Spread

Oklahoma and Texas, USA.

Board of Directors and Key Management

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