(1st February, 2010)
TULSA, OK, Feb 01, 2010 (MARKETWIRE via COMTEX) — CAVU Resources, Inc. (”CAVU”), which trades as (PINKSHEETS: CAVR), announced today that it has entered into a Letter of Intent to acquire a 7 mile section of a gas gathering pipeline along with a 2,240 acre lease and existing well that has at current prices $780,000,000 of proven recoverable natural gas reserves. The lease, well and pipeline are located in South Texas.
A contour map of the lease was prepared; with the Landsat imagery obtained showing the correlation for the structure is quite good. Landsat did indicate a much larger aerial coverage of the structure than seismic. The structure is quite prominent from the size of the structure; it can be assume to be Ordovician or Cambrian in age. One smaller seismic contour map may be indicating later reefing at shallower depths. The Landsat does indicate that the acreage currently be held under lease is quality property with good hydrocarbon potential.
The current well has seven indentified pay zones starting at 5,000 feet to a depth of 23,000 feet. From the number of differing productive zones in the well and offset scout ticket data from a major oil and gas producer (located immediately south of the well) it can be inferred that a new discovery gas field is in development with potential of 15 to 20 deep wells.
A mix of shallow wells is initially planned followed by the deeper, more expensive wells financed from production profits. Well spacing on this lease ranges from 40 acres per well on the shallow zones to 320 acres per well on all of the other productive zones.
The company plans to check production and quality of gas on the well over the next 30 days including a 4 point well test and to pressure test the acquired pipeline. With successful results on the well, the company will commence production from the existing productive zone. The current head pressure is at 4800 PSI and the Geologist/ Petroleum Engineer estimated an initial production in the area of 2,000,000 to 5,000,000 MCF per day.
“With the closing of this acquisition and a successful test, CAVU will move to a new level as an Independent Natural Resource Company. This project is a game changer for CAVU,” said William Robinson, President of CAVU Resources, Inc.
The company has purposely withheld the well name, specific lease location, and producible zones and exacts depths until certain benchmarks and tests are completed and the acquisition is closed.
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, 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, 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