TULSA, Okla., May 19, 2011 /PRNewswire/ -- CAVU Resources, Inc. ("CAVU"), which trades as OTC:CAVR.PK, is pleased to announce that it has entered into an agreement for $500,000 in cash and stock with A. L. Feezel, LLC, ("Feezel") to purchase 470 acres and an estimated 258,000 barrels of proven oil reserves. CAVU will own 100% of the working interest and have a 75% net revenue interest.
CAVU is also acquiring 3 years of land work, research and engineering. The seller Feezel had engaged Tyco Engineering, a petroleum engineering firm in Ada, Oklahoma to conduct an engineering survey on the re-working 25 existing wells, target the optimal new drilling locations and implement a water flood well stimulation program in Pontotoc County, Oklahoma. The acquired study identified and utilized previous well logs and historical data from the Oklahoma Corporation Commission.
This acquisition allows CAVU to expand its area of operations in Southern Oklahoma with this project only 30 mile from the company's regional operation center in Pauls Valley, Oklahoma. The Allen oil field is a shallow Pennsylvanian age productive field. Originally drilled in the 1930s and 1940s. The primary producing formations are the Allen, Senora, Thurman and the Gilcrease. The formations to be utilized in this first phase of the project will be in the Senora zone and the Upper Allen. Total depth on these shallow wells is 750' to 950'. Based on geological reports, these leases are estimated to produce up to 100 barrels a day of oil and to contain up to 258,000 barrels of proven reserves.
"This project is close to our Chisholm lease and utilizes three years of research and engineering allowing us to fast track and easily supervises this project. The low risk and high potential return continues to add to our production and reserves," said William C. Robinson, CAVU's President.
About A. Feezel Company
Mr. A. L. Feezel was a supervisor with Mobile Oil and after 22 years of service formed A. Feezel Company in the 1985. A. L. Feezel, LLC is the owner of the Allen Field. The Feezel Company owns 4 work over rigs and various operating equipment. The company primary business is servicing oil field operations. A. Feezel Company had been in business for over 25 years and is head quartered in Ada, Oklahoma.
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.
A. Feezel Company
P.O. Box 1371
ADA, OK 74821
CAVU Resources, Inc.
5147 South Harvard Ave,
Tulsa, OK 74135
SOURCE CAVU Resources, Inc.