CAVU Resources, Inc. Steamrolls Into 2012 With 100 Wells and Winning the Bid for $1.3 Million in Saltwater Waste Disposal Equipment
TULSA, Okla., Dec. 27, 2011 /PRNewswire/ — CAVU Resources, Inc. (“CAVU”), which trades as (OTC:CAVR.PK), announced today that it won a bid for a recently closed state of the art Saltwater Disposal facilities with over $1.3 million in disposal equipment assets and that it has increased its ownership and management in oil and gas wells from 10 to 100.
The recently completed saltwater disposal facility in Arkansas that would cost over $3 million to build was recently closed and put up for sealed bid. CAVU won the bid and will remove the assets and will reconstruct the facility to treat saltwater along with the planned 50,000 barrel a day FILO SWDW #1 disposal well on its Chisholm lease in Pauls Valley, Oklahoma.
Over the past year CAVU’s production ownership and management operations grew from 160 acre 1 well and a 190 acre nine well lease to over 100 oil and gas wells in five counties, 3 disposal wells and over 4,000 acres now under management. CAVU has engaged its subsidiary CAVU Energy Services, Inc. (‘CES”) to operate all of its properties and market its services to outside owners as well. CES is one of the general partners in the ongoing $5 million dollar offering for the FILO SWDW #1 LP salt water disposal well project. CAVU plans to sell its recently acquired disposal facility equipment, complete the infrastructure work for this project and buy out its existing partner on the Chisholm lease with proceeds from the offering adding to its 2012 revenue.
CAVU is just completing its massive rework of the 190 acre Chisholm Lease with production increasing to over 40 barrels of oil a day with only 2 wells in production, and 7 more planned to be completed and or drilled once the infrastructure to increase the disposal capacity to an initial 20,000 barrels of saltwater a day, with 50,000 barrels a day of saltwater production the final goal. CAVU has current plans to start a similar rework program on the 60 well Hogshooter lease it acquired in Washington County, near Nowata, Oklahoma. Revenue from projects in place should complete the payoff of vendors and all outstanding debt of CAVU.
CAVU recently increased its authorized shares to 300,000,000 with 248,754,928 currently issued and outstanding. Utilizing the 2011 financings CAVU has grown its total assets from approximately $4.8 to an estimated $7.5 million, we also have reserves and ownership in CES that are not included in the reported assets and will be valued at a future date. CAVU has increased its ownership and wells under management to 100 and reduced its debt in 2011. This strategic use of equity has reduced risk, built the asset base, advanced the completion of the FILO SWDW#1 that will allowing for increased production on the Chisholm lease, initiating the reworking and production on the Hogshooter lease, increasing asset value, production and revenue for the company.
“By winning the recent bid Disposal well bid, the collection of outstanding receivables, the planned completion of the FILO saltwater disposal well and the ongoing contracted Envirotek rework project has put firm growth plans in place for the company. CAVU will steamroll into 2012 with the opening of its new global headquarters, increased cash flow from the reworked producing wells and the market and sale of oil and gas lease opportunities, the company plans to end 2012 debt free with estimated working capital of $1 million dollars,” stated William Robinson, CEO 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.
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SOURCE CAVU Resources, Inc.