(10th May, 2012)
TULSA, Okla., May 10, 2012 /PRNewswire via COMTEX/ — CAVU Resources, Inc. (”CAVU”), which trades as OTC:CAVR.PK, announced today that it has closed on a joint venture agreement and has acquired 40% of the newly formed company called CAVU Global Energy, LLC, (”CAVU Global”). Investors have contributed a new mobile oil refinery technology and oil and gas leases in three states with reserve and technology values in excess of $200 million dollars. CAVU Global brings funding commitments and in addition also has ongoing negotiations for up to $25 million to fund the company’s initial projects.
The new partnership has targeted specific opportunities in the oil and gas business focusing primarily on the development of properties in Oklahoma, Texas and Louisiana. CAVU Global also will begin the immediate placement of its revolutionary technology that allows mobile mini refineries to be moved directly on to production sites with as small as 100 barrels a day of production.
A pilot plant has already been built proving out the technology in Nevada. The initial mobile refinery plant has been successful in both tar sand oil and conventional oil conversions allowing fuel production in remote areas, opening both civilian and government opportunities for the company. This will allow for a lower cost fuel direct to the consumer for gas and diesel. By eliminating transportation and marketing costs, this allows for high grade fuel to possibly be sold at costs 20 to 30% lower than current retail gas stations.
CAVU Energy Systems, Inc. will continue as the Bonded operating company and run all the oil and gas operations for the proposed multi state operations. CAVU Energy will also handle the installation of the Mobile refineries on a worldwide basis.
“We are extremely impressed with the capability of CAVU Resources, Inc. After 9 months of discussions, we feel CAVU is the right fit helping us to develop our oil and gas leases in an expedited fashion,” stated Chris Wilks, managing member of CAVU Global Energy, LLC.
“We have closed this agreement and there is no dilution or further equity issuance related to this Joint Venture. CAVU’s 40% ownership now brings in excess of a $200 million asset base to accelerate its growth, and also secures the spinout and planned public offering of CAVU Energy Systems, Inc. The reserves and projected income from the current projects inside CAVU Global should allow CAVU to exceed all previous earnings projections, and future earnings per share could easily be 2 to 3 times the current stock price. The last year has been focused on eliminating debt, and creating opportunities for the company with the final goal to have cash flow and earnings. The infrastructure is now fully in place and we are finally there, after having worked on closing this deal for the last 9 months, the projected cash flow from this acquisition should eliminate the need to sell equity in the future to fund operations, debt retirement and growth. The combined team of CAVU and CAVU Global creates a financial and asset based relationship that should provide multiple future benefits to our shareholders and to meet all these goals,” stated William Robinson, CEO and President of CAVU Resources, Inc.
About CAVU Global Energy, LLC CAVU Global Energy was formed with the goal of becoming a nationally known oil and gas company dedicated towards the communities in which it operates by focusing on price competitive markets. This family run company features a fully qualified membership which includes entrepreneurs, former VP of a Global Government Retailer (AAFES), and a retired chief engineer for ATK, a major NASA contractor. With a combined experience of over 60 years, CAVU Global Energy is leading the way towards achieving its goals in the oil and gas business. CAVU Global Energy has secured contracts for both drilling and sales of output production. CAVU Global Energy in addition, qualifies as a Minority owned company.
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.
CAVU’s has a minority subsidiary interest in CAVU Energy Services, Inc., a bonded 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 utilize its own operating equipment and with strategic partners provide contract drilling, fracture stimulation and directional drilling services to oil, natural gas exploration and production companies. CAVU plans to expand operations not only in the traditional Oil and Gas business, but also to invest in technology, waste disposal, and water reclamation, 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.
Contacts: Specialty Situations Investor Relations Tel: 973-507-6199
CAVU Resources, Inc. CAVU Global Energy, LLC
5147 South Harvard Ave, STE 138 Chris Wilks, Managing Partner
Tulsa, OK 74135 Edward Wilks- Managing Partner
Desai V. Robinson, Director of Public Relations Rodney Wilks- Lead Engineer
Email: firstname.lastname@example.org Email: email@example.com
www.cavu-resources.com Tel: 504-722-7402 Tel: 214-289-3195
SOURCE CAVU Resources, Inc.