Gas station network operator Capital Oil & Gas has entered into negotiations to acquire or lease 11 additional full service gas and convenience store stations in Florida to add to its growing retail petroleum and mini-mart portfolio.

The company believes that these additional 11 stations upon completion of negotiations and taking possession of the properties will add additional revenues of approximately $55 million to $60 million per year in gross revenues to its ongoing operations and revenue stream.

The company will pay for these acquisitions or leases from existing cash flow and bank financing, and cash flow from the new properties and will not alter the capital structure of the company as management views any use of its equities to finance these acquisitions as being totally against the company’s overall growth strategy.

Upon the successful acquisition or lease of these 11 properties and the pending closing of the other three previously announced properties, the company will control 15 properties with projected annual gross revenues of $85 million to $92 million per year with a pre-tax profit margin of between 8% and 12%.

Ariel Rodriguez, president and COO, said: As previously stated, it is the intent of executive management to control either by acquisitions or leases enough stations to generate a minimum of $100 million per year in revenue, with a potential pre-tax profit margin of 8% to 12% per year overall. The company believes that it would then be in a position to become a fully reporting company and leverage its buying power from its suppliers.