TULSA, Okla., Sept. 12, 2011 /PRNewswire/ -- CAVU Resources, Inc. ("CAVU"), which trades as OTC: CAVR, announce today that the company filed its first six months financials with pinksheets.com.
CAVU's second quarter revenues include adjustments in the previously estimated revenue, accounted for elimination of intercompany transactions, the results from the stock sale of Envirotek Fuel Systems, Inc. and the equipment sale and settlement with Verilease Finance, Inc. CAVU's net income rose from $106,452 for the six months ending June 30, 2010 to $1,600,638, this was over a 1,500% increase in profitability for the six months ending June 30, 2011. CAVU also increased its assets from $4,801,013 to $6,791,165 a 30% increase and shareholders' equity rose from $832,051 to $3,739,919, a 450% increase during this same period.
New acquisitions will continue to be targeted for future asset and revenue growth. Financial results continue to improve steadily, with significant debt reduction and greater cash flow generation, with a goal for dividend distributions in the future.
CAVU is completing a six month equipment renovation and replacement program on the 190 acre Chisholm lease. The next investments will be in the 900 acre, 60 well Hogshooter lease and the 160 acre, 25 well, North East Nowata lease. The Company plans to work simultaneously on these leases with plans to begin the previously announced 100 well drilling program in the same area upon receipt of project funding.
CAVU is focusing on projects and acquisitions that bring future value, increased revenues and new opportunity. Its wholly owned operating company CAVU Energy Services, LLC ("CVE") has targeted opportunities in both conventional and directional drilling in the Midwest United States. Upon approval by the shareholders this will spun out and CAVU will retain a minority position and transfer operational of its leases to CVE. CAVU should continue to enjoy continued growth in 2011 giving the CAVU shareholder a stake in to growing companies.
"We are happy the growth and profitability are meeting our goals. With the planned spinoff of CAVU Energy Services, Inc. and the operational overhead being moved to the new company our job will be to seek out new acquisitions and manage the investment for growth and increased value for our shareholders," stated William Robinson, CEO and 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 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, Colorado, Montana and Texas. The Company has acquired leases and is currently exploring additional opportunities in oil and gas leases.
CAVU's 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 Kansas, Colorado, Montana and Texas. The company will utilize its own operating equipment and with strategic partners provide contract drilling, fracture stimulation and directional drilling services to oil, natural gas exploration and production companies. CAVU plans to expand operations not only in the traditional Oil and Gas business, but also to invest in technology, waste disposal, Geo-Thermal and 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.
Specialty Situations Investor Relations
CAVU Resources, Inc.
5147 South Harvard Ave,
Tulsa, OK 74135
Desai V. Robinson, Director of Public Relations
SOURCE CAVU Resources, Inc.