TULSA, Okla., Nov. 14, 2012 /PRNewswire/ -- CAVU Resources, Inc. ("CAVU"), which trades as OTC:CAVR.PK, announced, after lengthy negotiations, that its subsidiary CAVU Energy Services, Inc. has entered into a Letter of Intent to merge on a stock for stock basis with CAVU Global Energy, LLC. ("CAVU GLOBAL"). In a separate transaction CAVU Resources, Inc. will convey 100% of its ownership in the Chisholm and Hogshooter leases, along with approximately $1,000,000 in debt, for a combined 40% ownership including the existing dividend shares in the surviving future public company CAVU Energy Services, Inc.
CAVU GLOBAL is currently providing funds on both the Hogshooter and Chisholm leases and has agreed to fund the entire future development of these projects and to pay off all debts associated with these leases. CAVU GLOBAL plans to engage a geological and engineering firm to complete a PV 10 study for reserves and recoverable production values of the combined company assets that includes the approximately 21,000 acres of oil and gas leases in Milam County, Texas, 900 acres in Jefferson Parish, Louisiana, 140 acre Chisholm lease in Pauls Valley, Oklahoma and 820 acre Hogshooter lease in Bartlesville, Oklahoma.
CAVU GLOBAL is also contributing these additional assets to the merger including a recently acquired Private Corporate Bond in the amount of $100 million to be used as an asset to secure funding for existing and future projects. CAVU GLOBAL also recently entered into an agreement to acquire a revolutionary high efficient electric motor that can be used in energy production, storage and to power vehicles. CAVU GLOBAL continues to explore government and institutional funding of the Mobile Refinery technology in its contracted market of Oklahoma, Louisiana, Kansas, Texas and Utah.
"We believe this is the quickest path to fully capitalize both companies and with private institutional funds available to immediately begin the audit and the S 1 filing process needed for CAVU Energy Services, Inc. to be a publicly traded Company within six months. The $100 million bond and proprietary technologies and oil and gas properties in some of the most lucrative areas gives the backing and future revenue to obtain funding and to utilize the capital markets for our very strong forecasted growth," commented Chris Wilks, managing member of CAVU Global Energy, LLC.
In a proxy unanimously voted for last year, shareholders of CAVU voted to spin out the CAVU Energy Services, Inc. as a stock dividend and to seek the opportunity to go public. This transaction fulfills this mandate and will require the shareholder approval of both companies to complete the proposed merger. It is anticipated that an S-1 Registration Statement will be filed immediately with the Securities and Exchange Commission upon completion of the audit of both companies.
Going forward, in addition to the company and shareholders of CAVU Resources, Inc. owning 40% of newly proposed public CAVU Energy Services, Inc., the company maintains 100% ownership and control of its other operations, namely:
- Newly targeted leases in both Oklahoma and Kansas, along with those located in very prolific Mississippi Lime play.
- Saltwater Disposal and water reclamation projects Kansas, Louisiana and Texas
- CAVU has also recently been approved for approximately $150,000 in equipment funding to begin development on existing and recently acquired oil and gas properties.
William C. Robinson, CEO of CAVU commented, "After months of negotiations, this Merger fulfills the vision we described at our shareholder meeting last year. We have accomplished this in a most prudent manner, with the aim of rewarding our shareowners. This merger and our ongoing projects should continue to fuel growth and future dividends for the company. I am very excited about the future for CAVU. We are operating with good corporate governance and moving forward in a positive direction."
About CAVU Global Energy, LLC
CAVU Global Energy was formed with the goal of becoming a nationally known oil and gas company dedicated towards the communities in which it operates by focusing on price competitive markets. This family run company features a fully qualified membership which includes entrepreneurs, former VP of a Global Government Retailer (AAFES), and a retired chief engineer for ATK, a major NASA contractor. With a combined experience of over 60 years, CAVU Global Energy is leading the way towards achieving its goals in the oil, gas and energy business. CAVU Global Energy in addition, qualifies as a Minority owned company and will be able to utilize this in future government business opportunities.
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 pilots believed they would have unobstructed flying allowing them to see their targets quicker, identify the obstacles they needed to overcome, giving them a greater chance of success. The founders of CAVU Resources, Inc. 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 and Texas. The Company has acquired leases and is currently exploring additional opportunities in oil and gas leases.
CAVU's minority owned operating subsidiary, CAVU Energy Services, Inc., licensed Oil and Gas Operating Company manages the company's properties in Oklahoma and plans to operate targeted leases in Oklahoma, Kansas and Texas. 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.
CAVU Global Energy, LLC
Chris Wilks, Managing Partner
Edward Wilks, Managing Partner
Rodney Wilks, Lead Engineer
SOURCE CAVU Resources, Inc.