TULSA, OK, Nov 12 (MARKET WIRE) --
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.
info@cavu-resources.com
2533 N. Carson St. Suite 4116
Carson City, NV 89706
Tel: 775-888-3174
Fax: 775-883-2384
Cell: 504-722-7402
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