(22nd January, 2010)
TULSA, OK, Jan 22, 2010 (MARKETWIRE via COMTEX) — CAVU Resources, Inc. (”CAVU”) (PINKSHEETS: CAVR) announced today that the Company has acquired an additional 5.5 miles of a strategic gas pipeline that extends east from its recently acquired Envirotek Fuel System’s 35 miles of pipeline and 3,140 acre Hogshooter Project in Nowata County, Oklahoma. By acquiring this additional segment, CAVU can now purchase third party gas from producers who have had their natural gas wells shut-in due to no available market for their gas.
This segment of pipeline had been laid years ago by a local small independent company who had plans to drill wells in this area and sell gas directly to end users in the town of Nowata, OK. After laying the pipeline and connecting a few of its wells, this independent company halted further development. Since then, the pipeline has been used only to transport the independent’s gas from a few marginally producing wells. Without sufficient capital to install the infrastructure needed to purchase third party gas, the small company looked to sell its pipeline and approached CAVU upon learning of its acquisition of the Hogshooter Project.
CAVU has already begun planning its field development schedule to tie shut-in wells in the area into this segment of line, which feeds into the Company’s main pipeline that was obtained in the Hogshooter Project acquisition. There are approximately a dozen wells that could immediately be tied into this acquired line. Additionally, there are producers currently selling to other gas purchasers that have expressed an interest in selling to CAVU instead at better terms. By purchasing the gas from these producers, the Company will be able to charge transportation costs and generate cash flow that goes almost entirely to the bottom line.
“One of the things we looked at when we were considering the acquisition of this project was how much natural gas we could purchase from producers who no longer have access to pipelines or who have been forced to shut-in their wells due to exorbitant transportation charges from purchasers in this area,” said William Robinson, President of CAVU Resources, Inc. “Another appealing factor is that this segment opens up acreage that we can develop that has been largely ignored due to the lack of pipeline capacity,” he added.
CAVU’s management team has set a target of purchasing gas from at least 30 wells in the area within the next 18 months.
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 founders of CAVU Resources 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 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., providing natural gas delivery and marketing thru its own pipelines, CAVU Operating Company, LLC managing the company’s properties and targeted leases in Oklahoma, Texas, 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, Solar and security, 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. email@example.com CAVR.PK 2533 N. Carson St. Suite 4116 Carson City, NV 89706 Tel: 775-888-3174 Fax: 775-883-2384 Cell: 504-722-7402