Company description of the new activities in Capital Oil.

After the acquisition of Misen Enterprises AB Capital Oil has entered into a completely new development phase. In order to give the capital market a comprehensive and updated description of the new area of activities in Capital Oil the attached Company description is published and giving information primarily about the items below.

• Business model and straregy
• Organization and joint activities
• Overview of the Ukraine E&P industry
• Risk exposure
• Financial statements 2007 – 2011
• Board of Directors, Management and Auditors
• Shareholders and insiders
• Information about legal proceedings, dividend and information policy and liability statement from the Board of Directors

For further information please contact: Leif Larsson, CEO tel 46 31  759 50 71 mobile 46 708  40 82 71   E-mail:  leif@capital oil.se 

Capital Oil is a Swedish oil and gas exploration and extraction company with operations in Ukraine. Capital Oil was founded in 2004 and the Capital Oil share is since 12 June 2007 traded on NasdaqOMX  First North.  

In 2011 Svenska Capital Oil AB acquired Misen Enterprises AB and its Ukrainian subsidiary, KarpatyGaz, including the rights of 50,01 % of the revenue and profit from a gas production project in Ukraine, which will provide Capital Oil with essential gas and oil assets. As consideration of this acquisition a new share issue was performed.  

The gas extraction assets are acquired by production cooperation via a joint activity project governed by a Joint Activity Agreement (the “JAA”) between the wholly owned subsidiaries of Capital Oil, i.e. Misen Enterprises AB and Karpatygaz and Ukrgazvydobuvannya, the largest producer of natural gas in Ukraine and subsidiary of the publicly owned company Naftogaz Ukraine. The value of the assets has been assessed by PwC in Ukraine and is estimated to be essentially more than the purchase price for Misen.  

The purpose of the project is to significantly increase production of gas and oil by implementing new technology and a large-scale investment program.    

The residence of Capita Oil is in Gothenburg and the shares are traded on First North under identification COIL The Certified Adviser of the company at NasdaqOMX First North is Thenberg & Kinde Fondkommision AB.

 For further information please visit our web site www.capitaloil.se.