CAVU Resources, Inc. To Focus On Core Business And Announces The Mutual Cancellation Of The Sun Packing Acquisition
TULSA, Okla., May 30, 2012 /PRNewswire/ — CAVU Resources, Inc. (“CAVU”), which trades as OTC: CAVR.PK, announced today that the Company is focusing on its core oil and gas business and has mutually canceled its Letter of Intent to acquire Sun Packing, Inc. and Wallisville Partners, Ltd., (“SUN”). Both parties agreed that the combined business models took away from their primary growth plans and mutually canceled the existing Letter of Intent. CAVU is focusing its growth 100% in the Oil and Gas business and technology directly related to its day to day operations.
“With the recent transaction with CAVU Global Energy, LLC and its $200 million in assets, we feel that our resources should be focused solely on Oil and Gas operating assets and technology. The company is exploring conventional funding opportunities for its core assets and has suspended any additional funding through convertible debt instruments and is negotiating to pay off any remaining convertible debt. The company is completing its first quarter financials and plans to file them in the next week. The company will also lift the gag order at the transfer agent and with current financials, bring 100% transparency and return to PS status with OTC markets. The current outstanding of 525,774,223 common shares are now frozen and no additional shares are planned to be issued at this time.
“We have had to compensate for delinquent receivables, acquisition opportunities and pay down secured debt thru the issuance of stock. This might have diluted the share structure in the past, but it has made us a lot stronger, as we head into the future. We now have sufficient assets and revenue opportunities to secure conventional funding and increase our future revenues. The company is working with private and institutional investment groups that focus on the energy sector to potentially secure funding sources to facilitate its recent transactions. More to follow shortly. We also still fully expect to receive the $2.6 million owed to us in receivables, which along with the conventional funding will put us in a position of strength. The $2.6 million was recently restructured and we received the first payment just last week. The company also looks to bolster the existing management team with seasoned advisors experienced in finance and the oil and gas industry. It has been an uphill battle the last two years but we are close to the top. Our assets far outweigh our market cap, and our cash flows and revenues are about to catch up. I am still very confident that with all the projects in CAVU Global, along with the Chisholm and the Hogshooter leases, CAVU could exceed all previous earning projections and justifying a much higher stock price,” stated William Robinson, CEO and President of CAVU Resources, Inc.
The export market in the U.S. is a trillion dollar industry. In addition to the value of the exported product itself, the transportation, logistics and packing and crating industries are for the most part, values that are added to the raw export. Insurance industry standards state that “…any product which is to be exported should be properly packed and crated either for ocean or airline transport.” The packing and crating industry is very specialized and requires an intimate knowledge of the type of product to be packed as well as the type of and source of potential damage that must be protected against. Years of experience and years of longevity in the industry are the truest test of a successful operator in the industry.
Sun Packing, Inc. is a 14-year-old packing and crating company specializing in the O&G and Energy sectors with a premier client list. Sun has recently expanded into the solar photovoltaic installation business. The US is at the early stages of the renewable revolution and for solar adoption. The solar photovoltaic (PV) market is still in the Model T stage but is rapidly emerging with multi-billion dollar investments by major corporations including Buffet’s MidAmerica Energy. Both public entities and private individuals are now recognizing that solar energy has come of age. Solar photovoltaic cells convert sunlight into electricity and many solar power stations have already been built, mainly in Europe. At best there are only 150k installations (including residential) in the US vs. 45 million rooftops that can accommodate solar. In the US, there are several large solar projects under construction. California alone has more than 2 gigawatts under construction in 5 different projects. We are at the early stages of the renewable revolution and for solar adoption.
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 minority owned 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, solar 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.
Sun Packing, Inc.
Jon Grossman, CFO
Wallisville Partners, Ltd.
10077 Wallisville Road
Houston, Texas 77013
Specialty Situations Investor Relations
SOURCE CAVU Resources, Inc.