(15th March, 2011)
TULSA, OK, Mar 15, 2011 (MARKETWIRE via COMTEX) — CAVU Resources, Inc. (”CAVU”), which trades as (pinksheets:CAVR), announced today it recently received a permit for a 50,000 barrel a day saltwater disposal well named the FILO # 1 SWD well located on the CAVU’s Chisholm lease in Pauls Valley, Oklahoma.
The Chisholm lease is located in a prime location, surrounded by oil and gas fields and on the intersection of a Highway and a County Road. FILO Quip Resources, LLC, the Operating Company and wholly owned subsidiary of CAVU has obtained a drilling permit and operation permit for 50,000 BBLS of disposal per day from the Oklahoma Corporation Commission, a commercial saltwater disposal permit for the FILO #1 SWD well, which allows the injection of salt water, drilling and production byproducts. The operator FILO Quip Resources, LLC has secured commitments for up to 12,000 BBLS per day of waste drilling fluids mostly comprised of saltwater and the company has also targeted the acquisition of a second commercial disposal well, located in the company’s area of influence assuring CAVU both the local and national producers in the area. Having two disposal wells located near the same property has very unique and beneficial advantages. By potentially having two wells in operation, the risk of down time is drastically limited when one well goes down for maintenance which will allow CAVU to offer 24 hour, 365 day a year service. Two injection pumps will also be installed, so that in the event of mechanical failure of one, the other pump will be placed into service.
In addition to income generated from disposal fees, a significant source of income is generated from “skim oil.” When the hauling company vacuums or sucks up saltwater from holding tanks on producing properties, a small amount of oil is picked up at the same time. The off loaded water filters through a series of settling tanks at the SWD well facility and all oil is skimmed, segregated and accumulated for sale. It is estimated that the initial commitments could produce as much as 100 barrels of oil per day. The skim oil aspect of the saltwater disposal business is like owing a producing well which never depletes.
To further increase profitability of the facility, additional oil field services may be offered. For example, the sale of treated “KCL” or heavy brine water may also be considered as the same trucks that haul produced saltwater away from producing properties also deliver clean, treated water to drill sites and work over operations. To take advantage of this CAVU will utilize its trucking authority to operate anywhere in the United States and will utilize its fleet of Semi Trucks it currently owns.
With these assets in place the expansion into future disposal facilities in other areas will likely be pursued and can be accomplished very efficiently in conjunction with our exploratory drilling and re-entry projects. Wells drilled under exploratory projects in which BOC has a significant interest may be completed in a manner suitable to the future use and conversion for saltwater disposal where applicable geographically and when saltwater disposal operations are permitted by the landowner. The saltwater disposal facilities may be owned and operated wholly by CAVU. Alternatively, the company could target additional trucking companies or engage in joint ventures and partnerships to guarantee a steady volume of saltwater for disposal.
More to come.
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 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., provides natural gas delivery and marketing thru its own pipelines, 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