TULSA, Okla., Nov. 30, 2011 /PRNewswire/ -- CAVU Resources, Inc. (PINKSHEETS: CAVR), announced today that the company has completed the upgrades to the operating equipment, material handling and remote systems controls on the Chisholm lease production and disposal systems. The company recently restarted only two of the existing 8 wells and production has averaged flow rates of 44 barrels a day of oil (BOPD).
The upgrades included rebuilding the current submersible pump with cathode and electrolysis protection and sensors that allow continuous monitoring of all down hole activities. Filter and chemical treatment systems were also installed. The upgraded technology will reduce long term operating cost and equipment replacement by chemically protecting the operating systems and enhancing the oil flow for the four existing wells and the planned rework and drilling of 7 additional wells.
CAVU re-engineered the existing disposal system and added computer controlled injection pumps and multiple chemical additive systems to increase the flow rate and reduce down hole pressures. The upgraded system can now handle up to 10,000 barrels a day of treated saltwater. The current permit only allows for 3,000 barrels a day of production restricting further production. To allow for increased production and create additional revenue streams the company's subsidiary CAVU Energy Systems, Inc. has permitted a 50,000 barrel a day disposal well and plans on completing the first phase of its development by the end of April 2012.
"With these recent upgrades the day to day operations are virtually maintenance free with all field operation monitored from CAVU computer and camera systems on the Chisholm lease. The steadily increasing flow rates and increased disposal capacity show the Chisholm lease is only producing a small percentage of the available oil in the area. We are very happy with the results and look forward to using this technology on and of our leases that have the economics to support the system. CAVU has invested over $1.5 in the Chisholm lease and owns all of the improvements and has developed an integration of off the shelf technology that works great together," said William C. 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 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.
Desai V. Robinson, Director of Public Relations
5147 South Harvard Ave, STE 138
Tulsa, OK 74135
SOURCE CAVU Resources, Inc.