(11th April, 2011)
TULSA, OK, Apr 11, 2011 (MARKETWIRE via COMTEX) — CAVU Resources, Inc. (”CAVU”), which trades as (pinksheets:CAVR), is pleased to announce that it has entered into an agreement for $300,000 in cash and stock with Nitro Petroleum, Inc., a Nevada Corporation, (NITRO) to acquire oil and gas leases covering approximately 1,600 acres in Montana with two additional options to acquire an additional 1,600 acres per option. A substantial portion of this land package is located in the prolific Powder River Basin. CAVU will own 100% of the coal, coal bed methane, and oil and natural gas rights. The company will pay a 23% net royalty on production.
CAVU is also acquiring 3 years of land work, research and engineering. The seller NITRO had engaged Ramsey Engineering, a petroleum engineering firm in Oklahoma City, to conduct an engineering survey on the proposed 10 well drilling program in the Powder River Basin of Montana. The acquired study identified and utilized seismic surveys to target the optimal drilling locations. The acquired studies and engineering will enable CAVU to proceed with minimum financial risk and to focus on the pre-eminent drilling targets.
This acquisition allows CAVU to be one of the first companies to have access to these highly prospective leases. Geological reports indicate that there are four shallow methane and gas pay zones in each well. Based on geological reports, these leases are estimated to contain up to 24.6 billion cubic feet of gas reserves. Each well being drilled has three to five potential targets that could produce substantial oil and gas production, but the major upside potential for each of these wells is contained in the deeper target of the Pennsylvanian Tensleep Formation.
Once funded, the 10 well drilling program will target 6 production zones, with the wells drilled to depths from 4350 to 7700 feet. The target is to drill at least 150 feet into the Tensleep Formation in each hole. The Historical production in the surrounding area has been very prolific; area wells know as the Mann 1-18 and the Mann 8-18 have produced over 471,711 barrels of oil over the past ten years and are still in production today.
“This agreement utilizes three years of research and engineering allowing us to fast track this project. With the Big Horn lease in close proximity to producing wells and with similar geological targets, we believe CAVU is in position to add substantially to it production and reserves,” said William C. Robinson, CAVU’s President.
About Nitro Petroleum, Inc. Nitro Petroleum, Incorporated is an independent, energy company engaged in the acquisition, exploitation and development of oil and natural gas properties in the United States. Nitro’s objective is to seek out and develop opportunities in the oil and natural gas sectors that represent a low risk opportunity. As well, Nitro aims to define larger projects that can be developed with Joint Venture partners. More information about the company is available at www.nitropetroleuminc.com .
About CAVU Resources, Inc. During World War II, Navy fighter pilots would look up at the sky and if it was a “CAVU” day then it meant ceiling and visibility unlimited. The pilots believed they would have unobstructed flying allowing them to see their targets quicker, identify the obstacles they needed to overcome, giving them a greater chance of success. The founders of CAVU Resources, Inc., chose the name CAVU because they believe that the company will be the embodiment of its name.
CAVU was formed with the goal of becoming a recognized regional player in the independent oil and natural gas industry by growing the company’s oil and natural gas reserves. CAVU is a natural resource company engaged in the acquisition, exploration and development of oil and natural gas properties. The Company operates in the upstream segment of the oil and gas industry with planned activities including the drilling, completion and operation of oil and gas wells in Oklahoma, Kansas, Colorado, Montana and Texas. The Company also owns two pipelines in its area of operations, which will be used for gathering its gas and oil and the gas and oil production of other producers. The Company has acquired leases and is currently exploring additional opportunities in oil, gas and helium leases. The company has acquired significant oil and gas equipment including rigs, trucks and completion equipment.
CAVU’s 100% owned subsidiaries, CAVU Energy Services, LLC provides contract drilling, fracture stimulation and directional drilling services to oil, natural gas exploration and production companies. EnviroTek Fuel Systems, Inc., provides natural gas delivery and marketing thru its own pipelines and FILO quip Resources, LLC a licensed Oil and Gas Operating Company manages the company’s properties and leases in Oklahoma, Colorado and Montana. CAVU plans to expand operations not only in the traditional Oil and Gas business, but also to invest in Geo-Thermal, Wind, taking advantage of the changing environment and in the world’s need for new, green and innovative resources. More information is available at the company’s website at http://www.cavu-resources.com .
Cautionary note: This report contains forward-looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. By their nature, forward-looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to U.S. investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as “reserves” unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.
Contact:Nitro Petroleum, Inc.Investor Relations Toll Free: 1-888-805-NTROEmail: email@example.com www.nitropetroleuminc.com CAVU Resources, Inc.CAVR.PK5147 South Harvard Ave,Suite 138Tulsa, OK 74135 Email: firstname.lastname@example.org www.cavu-resources.com Tel: 504-722-7402Fax: 918-782-0776
SOURCE: CAVU Resources, Inc.
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