TULSA, Okla., April 18, 2011 /PRNewswire/ -- CAVU Resources, Inc. (CAVR:PINKSHEETS), announced today that the Third Phase of its Chisholm Lease rework and the reworking of 3 producing wells and 1 Salt Water disposal well was completed. The initial combined flow rates are estimated at 60 barrels a day of oil (BOPD).
The three producing wells the Chisholm B 2, Nabors 1 and the CAVU 1 were originally drilled to the Bromide formation at about 3,000 feet. The wells were reentered when companies in the area began testing deeper reservoirs. The Chisholm B 2 and the CAVU 1 wells were then deepened to the Oil Creek formation at about 3,800 feet. To take advantage of this and other opportunities the companies embarked on an aggressive re-work and upgrade program on the Chisholm Lease in late 2010.
CAVU plans to re-enter two additional wells to be renamed CAVU 2 And CAVU 3 in the next 60 days. The development plan includes a re-work, chemical stimulation, new equipment and re-drilling them to the Arbuckle at about 4,000 feet. On the way, the McLish, Bromide and Oil Creek formations would be tested.
"Based upon Chisholm Lease results and new chemical stimulation programs, we are very confident that we should hit our targets for these five wells, which would put our estimated combined production at between 100-120 BOPD. Some companies have successfully tested the Arbuckle in this area with tremendous results, which provides a nice upside potential for us," said William C. Robinson, President of CAVU Resources, Inc.
CAVU is running new gas production lines to connect to a gas transmission line for the estimate 300 MCF of gas being produced on the Chisholm Lease. Based upon results of the three producers and other wells contiguous to the lease, CAVU anticipates the reworked CAVU 2 and CAVU 3 wells to have average initial production rates of between 30 and 40 BOPD combined. Management plans to continue to leverage its production and with stable cash flow now available to expand this and future projects with an ongoing plan to reduce CAVU's debt.
"We have built in the infrastructure to develop and to drill three new wells that have each the potential to duplicate or exceed existing projected lease production," added 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.