(12th March, 2012)
TULSA, Okla., March 12, 2012 /PRNewswire via COMTEX/ — CAVU Resources, Inc. (”CAVU”), which trades as OTC: CAVR, announced today that the Company has entered into a Letter of Intent to acquire Sun Packing, Inc. and Wallisville Partners, Ltd., (”SUN”). SUN owns a 26-acre operations center in Houston, Texas. SUN’s historical business is as a 3rd Party Logistics operation specializing in export packing and crating primarily for the O&G and Energy Industries. SUN grossed $9.7 million in 2011. Late in 2011 SUN entered into an agreement for the procurement and installation of photovoltaic systems. Under the current contract, Sun intends to purchase and install between 30 and 50 MW (mega watts) of photovoltaic solar panels in 2012 worth an estimated minimum of $59 million revenue. The preliminary purchase terms of the LOI call for CAVU and SUN to each own 50% of CAVU’s outstanding common shares, with both of the acquired companies remaining 100% wholly owned subsidiaries of CAVU.
The recent emphasis on alternative or green energy by the Obama administration and rising oil prices gives CAVU through this acquisition increased revenues, assets and risk diversification over three distinct but related energy business models. SUN is seeing increased activities worldwide in its export packing and crating logistics business for the oil and gas and energy industry. Production and drilling parts are being produced in greater quantities and shipped to the every oil producing region in the world.
The global concern about diminishing oil supplies and the rising prices has every developing nation funding and installing alternative electricity producing technologies. SUN is installing photovoltaic panels in the state of Missouri on a multiyear agreement.
“This is a perfect combination of assets and business models. The immediate and growing profitability in the oil, gas and water reclamation business of CAVU and SUN’s growing logistics and solar business should give the shareholders of both companies growing revenues, with a target of the company moving to a listed exchange and future dividends,” said Jon Grossman, CFO of SUN.
“We believe this acquisition will reward the shareholders with assets in excess of the listed exchange requirements and future revenue and project specific funding that will grow CAVU into a leading Small Cap Energy company. With high profile revenue generating projects, the need for short-term equity funding will soon be replaced by reducing the long- and short-term debt with project specific capital, minimizing dilution that should increase investor interest and value in CAVU’s stock,” stated William Robinson, CEO of CAVU.
The export market in the U.S. is a trillion dollar industry. In addition to the value of the exported product itself, the transportation, logistics and packing and crating industries are for the most part, values that are added to the raw export. Insurance industry standards state that “…any product which is to be exported should be properly packed and crated either for ocean or airline transport.” The packing and crating industry is very specialized and requires an intimate knowledge of the type of product to be packed as well as the type of and source of potential damage that must be protected against. Years of experience and years of longevity in the industry are the truest test of a successful operator in the industry.
Sun Packing, Inc. is a 14-year-old packing and crating company specializing in the O&G and Energy sectors with a premier client list. The US is at the early stages of the renewable revolution and for solar adoption. The solar photovoltaic (PV) market is still in the Model T stage but is rapidly emerging with multi-billion dollar investments by major corporations including Buffet’s MidAmerica Energy. Both public entities and private individuals are now recognizing that solar energy has come of age. Solar photovoltaic cells convert sunlight into electricity and many solar power stations have already been built, mainly in Europe. At best there are only 150k installations (including residential) in the US vs. 45 million rooftops that can accommodate solar. In the US, there are several large plants under construction. California alone has more than 2 gigawatts under construction in 5 different projects. We are at the early stages of the renewable revolution and for solar adoption. Sun personnel have already completed the installation of several PV solar arrays under the contract and expect to install between 30 and 50MW in 2012.
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 operating subsidiary, CAVU Energy Services, Inc., 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, solar 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.
Sun Packing, Inc.Jon Grossman, CFOWallisville Partners, Ltd.10077 Wallisville RoadHouston, Texas 77013Tel: 713-673-4600Email: email@example.com
Specialty Situations Investor RelationsTel: 973-507-6199
CAVU Resources, Inc.Desai V. Robinson, Director of Public Relations5147 South Harvard Ave, STE 138Tulsa, OK 74135Email: firstname.lastname@example.orgWebsite: www.cavu-resources.comTel : 504-722-7402
SOURCE CAVU Resources, Inc.