TULSA, Okla., May 10, 2011 /PRNewswire/ -- CAVU Resources, Inc. ("CAVU"), which trades as (Pink Sheets: CAVR), announced today that the Company is utilizing new technology and introducing computer controlled directional drilling and enhanced dewatering processes to recomplete two wells on the Chisholm lease. CAVU plans on reentering two of its existing wells, utilizing chemical stimulation and dewatering processes after drilling four horizontal legs out from each well.
The two producing wells were originally drilled in the 1950s to the Bromide formation at about 3,000 feet. The wells will be deepened to the Oil Creek formation at about 3,800 feet with the horizontal legs to be drilled in zones with oil shows out 1,000' to 1,500' in four different directions. This allows for production in multiple zones without the cost of drilling four separate wells. Based on analyses from surrounding wells is estimated that the Bromide and Oil Creek zones can produce up to 200 barrels of oil per day, (BOPD) per well.
"After reviewing our recent production and well log analyses from the Chisholm Lease, we are very confident that we should hit our targets for the seven current wells we have reentered or plan to, which would put our combined production at between 10 to 200 BOPD per well. This is part of an old Marathon Oil water flood, where over 4 million of barrels of oil were recovered. We feel this field and surrounding acreage has the great potential, using the new technology we are introducing and drilling offset wells that could provide increased reserves and long term cash flow. We currently in negotiations for targeted lease opportunities in the surrounding area. These leases have producing wells that we will introduce a similar rework program as we have on the Chisholm lease. This along with potential new development and drilling programs could quickly duplicate our projected production," 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 and gas 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.
CAVU Resources, Inc.
5147 South Harvard Ave,
Tulsa, OK 74135
SOURCE CAVU Resources, Inc.