(12th November, 2009)
TULSA, OK, Nov 12, 2009 (MARKETWIRE via COMTEX) — CAVU Resources, Inc. (PINKSHEETS: CAVR) announced today that the Company has restructured the original acquisition of Filo Quip Resources, LLC. CAVU assumed the agreement to purchase FILO from a private investment group. The agreement calls for the assumption of specific liabilities and a combination of cash and a 6 month note transaction valued at $700,000 dollars. In the acquisition, CAVU is purchasing a 140 acre lease in Garvin County, Oklahoma that has two producing wells and seven additional wells that can be completed in down-hole reservoirs.
The two producing wells were originally drilled in the 1950s to the Bromide formation at about 3,000 feet. The wells were re-entered during the 1990s when companies in the area began testing deeper reservoirs. The wells were then deepened to the Oil Creek formation at about 3,800 feet. The two wells are currently producing a combined 35 to 40 barrels of oil per day (BOPD).
CAVU plans to re-enter the other seven wells on the lease and rework them with the possibility of deepening them to the Arbuckle at about 4,000 feet. On the way, the McLish and Oil Creek formations would be tested. Based upon results of the two producers and other wells contiguous to the lease, CAVU anticipates each of the seven wells to have average initial production rates of between 30 to 50 BOPD.
“Based upon results in this field, we are very confident that we should hit our targets for the nine wells, which would put our combined production at between 270-400 BOPD,” said William C. Robinson, President of CAVU Resources, Inc. “Some companies have successfully tested the Arbuckle in this area with tremendous results, which provides a nice upside potential for us. There is also some open acreage in the area, which would allow us to grow the project and quickly add to our reserves.”
At current market prices, an average of 300 BOPD would generate about $400,000 per month in net production revenues. Management plans to then leverage its reserves and cash flow to expand the project.
“We have targeted addition opportunities in the surrounding area with the potential to rework existing wells along with potential new development and drilling programs that could quickly become add to the existing project duplicating the projected production,” added 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 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 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., providing natural gas delivery and marketing thru its own pipelines, CAVU Operating Company, 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, Solar and security, 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. firstname.lastname@example.org 2533 N. Carson St. Suite 4116 Carson City, NV 89706 Tel: 775-888-3174 Fax: 775-883-2384 Cell: 504-722-7402