(18th August, 2011)
TULSA, Okla., Aug. 18, 2011 /PRNewswire via COMTEX/ — CAVU Resources, Inc. (”CAVU”), which trades as OTC: CAVR.PK, announced today that CAVU Resources, Inc. subsidiaries, CAVU Energy Services, LLC, CAVU Resources One, LP, has completed the merger into FILO Quip Resources, LLC along with the collective assets, debts and funding commitments, which were converted into an Oklahoma corporation re-named CAVU Energy Services, Inc. (”CVE”). CAVU Resources, Inc. will update its Proxy and describe the company’s future direction.
CAVU’s recent Proxy requires a vote of the shareholders to approve the spinout of its newly merged subsidiary CAVU Energy Services, Inc. as a standalone public company. The management has spent the last three years building value for its shareholders; the proposed spinout will give CAVU shareholders ownership in two public companies. To clear up any confusion relating to this transaction, the shareholders of record on July 27, 2011 will vote the Proxy; in the event that the shareholders approve the spinoff of the subsidiary as proposed in the Proxy, then the shareholders of record as of August 19, 2011 will receive shares of CVE on a 1:40 basis. The shares of common stock of CVE will be issued with a restrictive legend that will prohibit the resale of such stock until CVE files a registration statement on Form S-1.
Immediately following the Annual meeting, the company will start the process of taking CVE public, with plans to register the company on one of the listed exchanges. Minimum assets, revenue and share prices are a requirement for listing; we anticipate meeting these, as this relates to a true value as a dividend to the CAVU Resources shareholder.
Since the formation of CAVU management has focused on building value, aligning partnerships and targeting acquisitions, with this spinout, shareholders will enjoy immediate benefits, diversification with a greater chance of success in the future. Management has developed a series of proprietary strategies that will separate the risks associated with the development of acquiring new oil and gas leases and the early losses generally associated with such development of these leases.
It will also reduce competition within CAVU for capital and resources. As a separate entity, CVE will have direct access to the public and private capital markets to allow it to seek additional financing for its operations and growth without having to compete with CAVU with respect to capital and resources. As an independent entity, CVE will be in a position to pursue strategies its Directors and management believe will create long-term stockholder value for both CVE assets and products, including organic and acquisition growth opportunities, after its anticipated move to a listed exchange.
It will also allow the management of each separate company to design and implement corporate strategies and policies that are based primarily on the business characteristics of that company. Also at the same time, maintain a sharper focus on core business, growth opportunities and concentrate financial resources wholly on its own operations. CVE will seek out acquisitions in the core business of Oil and Gas operations, waste water transportation, disposal and reclamation opportunities, utilizing seasoned management, with goals to become a leader in its industry.
“With the operational side of the business now in the proposed spinoff, CAVU can continue to focus on what it does best: concentrating on its current leases, producing oil and gas, acquiring additional undervalued opportunities, while utilizing its current assets, infrastructure and project funding to grow and continue to look for ways to increase shareholder value with plans to continue to provide additional dividends from its successes. With these two operating entities, we believe our shareholders will benefit from both the unleashed value and potential growth going forward. We look forward to meeting with our fellow shareholders at the Annual Shareholders Meeting in Dallas, TX on September 16th,” stated William Robinson.
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 new operating subsidiary, CAVU Energy Services, Inc., 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. The company will 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, 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.
Specialty Situations Investor RelationsTel: 973-507-6199
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.comTel : 504-722-7402Fax: 918-782-0776
SOURCE CAVU Resources, Inc.