TULSA, Okla., April 15, 2011 /PRNewswire/ -- CAVU Resources, Inc. ("CAVU"), which trades as OTC: CAVR.PK, announced today that the Company's well, CAVU 1, was recently re-entered and reworked producing an initial flow rate of 24 barrels of oil a day and an estimated 300 MCF of natural gas.
CAVU's wholly owned subsidiary FILO Quip Resources, LLC, ("FILO") is the operator and has been replacing and reconditioning all of the Chisholm Lease facilities. Along with the recent completion of the CAVU 1, FILO's planned rework program has purchased new storage tanks, tubing, high volume submersible and disposal pumps with plans to complete CAVU 2 and CAVU 3 wells over the next 90 days.
The three wells currently being reworked were originally drilled to the Bromide formation at about 3,000 feet. The company has also begun a chemical treatment program to complement the new technology being implemented throughout the lease. The company has remote wireless control, video transmitting and recording equipment to monitor well and facility conditions for productivity, safety and security.
"We continue to surpass our expectations on this lease, we are very confident that we should hit our targets for seven wells in production be the end of this summer. The Chisholm Lease is part of an old Marathon Oil water flood, where over 4 million of barrels of oil were recovered. The old technology previously utilized left a large portion of the reservoir intact. With new technology and chemical stimulation techniques we feel this field and the surrounding acreage has great potential, including well offset well locations, that could provide increased reserves and add to long term cash flow," said William Robinson, 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 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 through its own pipelines and FILO Quip Resources, LLC, a licensed Oil and Gas Operating Company, manages the company's properties and 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 and Wind, taking advantage of the changing environment and 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.