CAP ENERGY LIMITED

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About Us

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.