(7th July, 2011)
TULSA, Okla., July 7, 2011 /PRNewswire via COMTEX/ — CAVU Resources, Inc. (”CAVU”), which trades as , entered into an agreement with Dependable American Energy Corporation, (”DAEC”) to purchase a 100 acre and 25 well lease in Nowata County.
The agreement calls for CAVU to purchase the 100 acre project for $290,000 in cash and $10,000 in stock. CAVU plans to capitalize on the project by re-entering existing wells, utilizing new technology, chemically treating and re-stimulate the wells. Oklahoma Corporation records show the project originally had produced approximately 100 barrels of oil a day before being shut in over 20 years ago.
CAVU plans to re-equip the project and put back into production 20 of the identified oil and gas producing wells and 5 saltwater disposal wells. Terms of the agreement with DAEC conveys a Net Revenue Interest of 81 1/4% and initially calls for 8 of the wells to be reworked with new production and storage equipment. DAEC will also bring permits current and have 2 saltwater disposal wells reworked to have on site disposal capacity. With second phase to be completed by CAVU reworking the remaining 12 producing wells and 3 saltwater disposal wells. CAVU has targeted the following zones, the Bartlesville Sand, Wayside Sand, the Mulky Coal Bed, Roe Coal Bed and Mississippi Lime for Oil and Gas.
DAEC work is scheduled to begin the first week of August, with plans to install new equipment, storage facilities, begin well reentry, well stimulation, and complete environmental audits and initiate an action plan utilizing historical data from engineers as well as targeting new drilling sites.
The DAEC property CAVU is acquiring has 5 zones targeted that could potentially produce both gas and oil. The wells in the area have historically ranged from 600 to 1200 feet, these shallow wells will allow for a rapid development program. CAVU will install state of the art storage and control systems and use the existing transmission lines owned by Envirotek Fuel Systems, Inc. for its gas production and delivery.
“CAVU continues to target and acquire undervalued property by utilizing new technology and minimal investments to add both the reserves and oil production under CAVU’s control and operation,” said William C. Robinson, CAVU’s President.
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 has acquired leases and is currently exploring additional opportunities in oil and gas leases. The company has acquired operating 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. FILO Quip Resources, LLC a licensed Oil and Gas Operating Company manages the company’s properties in Oklahoma and plans to operate targeted leases in Kansas, Colorado, Montana and Texas. CAVU plans to expand operations not only in the traditional Oil and Gas business, but also to invest in waste disposal, Geo-Thermal and 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:CAVU Resources, Inc.CAVR.PK5147 South Harvard Ave,Suite 138Tulsa, OK 74135Desai V. Robinson, Director of Public RelationsEmail: firstname.lastname@example.org Website: www.cavu-resources.com Tel: 504-722-7402Fax: 918-782-0776
SOURCE CAVU Resources, Inc.