(28th March, 2011)
TULSA, OK, Mar 28, 2011 (MARKETWIRE via COMTEX) — CAVU Resources, Inc. (”CAVU”), which trades as (pinksheets:CAVR), entered into an agreement with JH Field Service, LLC (”JHF”), an Oklahoma limited liability company, to purchase a 900 acre and 60 well lease in Nowata County, OK known as the Hogshooter Lease.
The agreement calls for CAVU to purchase the 900 acre project for $140,000 in cash and in $10,000 stock. CAVU plans to capitalize on the project by re-enter the existing wells, utilizing new technology, chemically treating and re-stimulate the wells. The project originally was a water flood and produced approximately 2,000,000 barrels of oil over a 20 year period. The project was shut in for about seven years and with limited reworking and stimulation of the wells until JHF acquired the project in 2009. JHF has re-entered 4 wells and cleared the locations for 20 more.
CAVU plans to re-equip the project and put back into production approximately 40 of the identified oil and gas producing wells. With the recent work, the field is currently producing 4 to 5 barrels of oil a day with anticipated production being in excess of 100 barrels a day. CAVU has targeted the following zones: the Bartlesville Sand and Wayside Sand for oil, the Mulky Coal Bed, Roe Coal Bed and Mississippi Lime for Gas.
CAVU plans to begin the second week of June to install new equipment, storage facilities, begin well re-entry, well stimulation, and complete environmental audits and initiate an action plan utilizing historical data from engineers as well as targeting new drilling sites.
The JHF 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.
“This agreement utilizes an undervalued property and with a minimal investment creates the potential to produce over 100 barrels of oil a day. This fits right into CAVU’s plans to grow through valued acquisitions. This acquisition will continue to increase both our revenues and balance sheet,” 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 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 subsidiary, 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 through 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: CAVU Resources, Inc. email@example.com CAVR.PK 5147 South Harvard Ave Suite 138 Tulsa, OK 74135 Tel: 504-722-7402 Fax: 918-782-0776