TULSA, Okla., April 16, 2012 /PRNewswire/ -- CAVU Resources, Inc. ("CAVU"), which trades as OTC:CAVR.PK, announced today that company filed its annual report with pinksheets.com.
CAVU's 2011 combined revenues were $3,438,823, a $1,188,108 increase over the $2,250,715 2010 revenues. Combined net earnings for 2011 eliminated the accrued losses of $812,729 producing fully diluted earnings of $1,124,143, or $.006 a share. CAVU's total assets grew from $5,876,015 in 2010 to $6,919,350, and its net assets grew from $1,570,856 in 2010 to $3,785,746 in 2011.
The Company achieved significant milestones in 2011. It completed the initial phases of its planned development of the Chisholm lease. The Hogshooter lease in Washington County and the Northeast Nowata lease were acquired with both leases planned to be reworked and put into full production in 2012. The Clarita Disposal well assets in Arkansas were acquired and recently moved, with the facility being reinstalled on the Chisholm lease.
CAVU's shareholders also voted to merge three subsidiaries, reorganize them and to spin off as a stock dividend. CAVU retained a 40% minority ownership position in the newly restructured CAVU Energy Services, Inc., ("CES") that included selling 6.2 acres of land, a building, and the rights and equipment in place for the 50,000 barrel a day saltwater disposal well under construction. The 50,000 barrel a day disposal well permit for the FILO SWDW#1 was recently modified, with new technologies and build out specifications incorporated into a new permit applied for in 2012 under CAVU Energy Services, Inc.
CAVU Resources retained its existing ownership of all of its leases (Hogshooter, Nowata, Garfield and Chisholm), its lease options including their oil reserves, production equipment, lines and pumps. CES will operate the leases for CAVU and plans to expand its company operations, managing wells, providing roustabout services, site preparation, the construction and operation of saltwater disposal wells in high activity production areas. CES still plans to file a registration statement and to go public on a listed exchange by the third quarter of 2012.
The company also sold its only remaining wholly owned subsidiary, Envirotek Fuel Systems, Inc., for $2,500,000 with a recently restructured note and payout bringing in new capital to the company in 2012. The management of CAVU decided to focus on one main direction, the acquisition and production of energy from oil, gas and natural resources. The shareholders approved this decision on September 16, 2011, with CAVU Energy Services, Inc. ("CES") acquiring all of the rights to the FILO SWDW#1 disposal well, specific equipment and assets utilized in the saltwater processing and disposal. All operation of CAVU Resources and Envirotek Fuel Systems wells, expanding its services offered into reworking wells, site preparation and roustabout work. This will give both the Company and its shareholders two unique opportunities to benefit from the rapidly growing energy business.
This plan moves both companies into focused business models moving away from the multiple opportunities the company has pursued in the past. Difficulty in securing conventional funding and the delay in payment for the sale of non performing assets and Envirotek forced the company to issue equity to reduced debt, pay vendors, and invest in specific system upgrades including state of the art assets and technology for the Chisholm lease and to target and acquire new leases. With contractual commitments from the sale of Envirotek, the Hogshooter, and anticipated cash flow from the planned second phase expansion of the Chisholm Lease, we believe we will see a consistent payback on the equity we sold to achieve the results to date. CAVU has over $1,500,000 invested and or committed to the FILO SWDW #1, which we will also share in approximately 40% of the ownership and profits.
Private investors have proposed revenue sharing on the Chisholm Lease, which would allow us to possibly drill two new wells into identified production zones at the Bromide and Oil Creek and also complete the rework of the nine existing wells. Upon completion of this drilling and rework program, projected production from the Chisholm Lease should be in excess of 400 barrels a day. The company continued to pay off debt and make assets acquisitions with equity opportunities. The revised total outstanding through April 16, 2012, is 476,579,979, total free trading is 320,986,150 and our Authorized is 611,000,000.
"With the current leases acquired and or targeted, and the planned rework programs on its existing leases, total production and revenue from assets sales could produce estimated earnings of $.01 a share in 2012. This is not even including projected earnings and distributions from CAVU Energy Services, Inc. and the FILO SWDW #1, 50,000 barrel a day saltwater disposal well. With no plans for a reverse split or additional reorganizations at this time, CAVU will continue to eliminate debt, focusing on revenue sharing funding, increased production and cash flow from its operating assets to achieve this projection. The ultimate goal of our business plan is to have earnings sufficient to maintain growth and to pay cash dividends to all our shareholders in the future," stated William Robinson, CEO and 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 has a minority subsidiary interest in CAVU Energy Services, Inc., a bonded Oil and Gas Operating Company manages the company's properties in Oklahoma and plans to operate targeted leases in Kansas, Colorado, Montana and Texas. CAVU plans to 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, and water reclamation, 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.
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SOURCE CAVU Resources, Inc.