(9th March, 2010)
TULSA, OK, Mar 09, 2010 (MARKETWIRE via COMTEX) — CAVU RESOURCES, INC. (PINKSHEETS: CAVR) is pleased to announce that the board of directors of CAVU Resources, Inc. voted to reduce the company’s authorized common shares by 400,000,000 to 200,000,000 with 78,185,957 common shares currently issued and outstanding. The company also announced the retirement of approximately $925,000 of outstanding convertible notes and the closed any further offing of convertible shares under its recent Reg D filing.
With current credit and investment markets being more difficult for developing companies, convertible debt has been one of the options used to fund the company in the past. CAVU has utilized these funds for operations and to acquire energy production equipment and revenue producing assets. These investments should allow the company’s growth to be funded through increased revenue and utilizing its assets base for conventional funding in the future.
“As a development company we are often chastised for using convertible debt as a funding mechanism. However the quality of the investments, hard asset and growing revenue base we acquired has added value to offset this initial dilution. We feel the reduction in the authorized will show the market that any future dilution will be used only for valued acquisitions and to increase CAVU’s revenues and book value,” said William C. Robinson, President of CAVU Resources, Inc.
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 three 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 and FILO Quip Resources, 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 Energy, 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