(21st June, 2010)
TULSA, OK, Jun 21, 2010 (MARKETWIRE via COMTEX) — CAVU Resources, Inc. (”CAVU”) (PINKSHEETS: CAVR) announced today that the Company has sold 50% of its Garvin County Oil Field in a transaction that will bring $1.35 million dollars into the company. The agreement called for the payment of the balance of the outstanding secured debt of $250,000 and the reimbursement of $1.1 million dollars invested in the project to date. The private investment group will invest on a 50/50 basis on all future cost and development.
In the acquisition, CAVU and its new investors purchased a total of 220 acre lease in Garvin County, Oklahoma that has two producing wells and two that are in the final stages of completion. The purchase also included over 6 acres of land and home that will be converted into the 24-7 operational facility for its wholly owned subsidiary FILO Quip Resources, LLC, (”FILO”). FILO is the operator and along with the planned rework program is increasing the storage capacity by 400%. The company has purchased seven new storage tanks, tubing and high volume submersible and disposal pumps to complete three additional wells.
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).
The operator FILO has already re-entered two of the wells on the lease and plans to re-enter five additional wells and rework them with the possibility of deepening them to the two Oil Creek formations between 3,800 and about 4,000 feet. There is one other significant producing zone the McLish Creek formation that will also be tested. After analyzing the data of the two producers and other wells contiguous to the lease, CAVU anticipates each of the seven wells could possibly 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 seven wells, which would put our combined production at between 270-400 BOPD, this is part of an old Marathon Oil water flood, where over 4 million of barrels of oil were recovered. We feel this field and surrounding acreage has great potential, using new technology and drilling offset wells that could provide increased reserves and long term cash flow. We have targeted addition lease opportunities in the surrounding area with the potential to rework existing wells along with potential new development and drilling programs that could quickly add to the existing project, duplicating our projected production,” said William 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, it meant ceiling and visibility unlimited. Pilots knew their path would be clear and their target or goal would be clearly visible. 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, 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, 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 CAVR.PK 5147 South Harvard Ave. Suite 138 Tulsa, OK 74135 Tel: 504-722-7402 Fax: 918-782-0776