TULSA, Okla., April 25, 2011 /PRNewswire/ -- CAVU Resources, Inc. ("CAVU"), which trades as (OTC: CAVR), announced today that the CAVU 1 recently put into production exceeded the initial estimates. CAVU has also re-launched its 5 million dollar private placement to replace funds expended for the recent upgrades of the Chisholm lease, the Montana leases, wind energy projects and the completion of the FILO 1, CAVU's permitted 50,000 barrel a day saltwater disposal well (FILO 1).
CAVU recently had employees monitoring the flow rates of the Chisholm B 2, Nabors 1 and the CAVU 1 24 hours a days since they were put back into production. The Chisholm lease is currently producing about 3,000 barrels a day of fluid. The existing storage facilities and active saltwater well are at their current production capacity.
The recently completed upgrades allow for rapid expansion of the storage facilities. Once the planned chemical treatment programs are initiated and storage facilities are expanded, oil production could be increased. The $5 million dollar private placement originally launched last year has been restructured to sell ownership interest in the current Chisholm Lease, FILO 1, the Montana and Wind Energy projects. The proceeds are also designated to pay for the work that was financed and the original funds borrowed to purchase the properties.
With the completion of the FILO 1, CAVU will be able to increase production on all of its Chisholm wells, as well as the targeted recompletions and new wells. As reported earlier the company has 12,000 barrels a day of saltwater disposal usage committed for the FILO 1 well.
"The success of the Chisholm Lease project and the future potential of the FILO 1, Montana and wind energy projects should produce positive returns for the company by the end of 2011. We believe that by reducing the long and short term debt along raising new project capital with minimal dilution should increase investor interest in CAVU's stock," stated William 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 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 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., provides natural gas delivery and marketing thru its own pipelines and FILO quip Resources, LLC a licensed Oil and Gas Operating Company manages the company's properties and targeted leases in Oklahoma, 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.
SOURCE CAVU Resources, Inc.