CAVU Resources, Inc. Sells 50% of Its Garvin County Field and Increases Its Field Storage Capacity by 400%
22 June 2010 - 3:43AM
Marketwired
CAVU Resources, Inc. ("CAVU") (PINKSHEETS: CAVR) announced today
that the Company has sold 50% of its Garvin County Oil Field in a
transaction that will bring $1.35 million dollars into the company.
The agreement called for the payment of the balance of the
outstanding secured debt of $250,000 and the reimbursement of $1.1
million dollars invested in the project to date. The private
investment group will invest on a 50/50 basis on all future cost
and development.
In the acquisition, CAVU and its new investors purchased a total
of 220 acre lease in Garvin County, Oklahoma that has two producing
wells and two that are in the final stages of completion. The
purchase also included over 6 acres of land and home that will be
converted into the 24-7 operational facility for its wholly owned
subsidiary FILO Quip Resources, LLC, ("FILO"). FILO is the operator
and along with the planned rework program is increasing the storage
capacity by 400%. The company has purchased seven new storage
tanks, tubing and high volume submersible and disposal pumps to
complete three additional wells.
The two producing wells were originally drilled in the 1950s to
the Bromide formation at about 3,000 feet. The wells were
re-entered during the 1990s when companies in the area began
testing deeper reservoirs. The wells were then deepened to the Oil
Creek formation at about 3,800 feet. The two wells are currently
producing a combined 35 to 40 barrels of oil per day (BOPD).
The operator FILO has already re-entered two of the wells on the
lease and plans to re-enter five additional wells and rework them
with the possibility of deepening them to the two Oil Creek
formations between 3,800 and about 4,000 feet. There is one other
significant producing zone the McLish Creek formation that will
also be tested. After analyzing the data of the two producers and
other wells contiguous to the lease, CAVU anticipates each of the
seven wells could possibly have average initial production rates of
between 30 to 50 BOPD.
"Based upon results in this field, we are very confident that we
should hit our targets for the seven wells, which would put our
combined production at between 270-400 BOPD, 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
great potential, using new technology and drilling offset wells
that could provide increased reserves and long term cash flow. We
have targeted addition lease opportunities in the surrounding area
with the potential to rework existing wells along with potential
new development and drilling programs that could quickly add to the
existing project, duplicating 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, it meant ceiling and visibility
unlimited. Pilots knew their path would be clear and their target
or goal would be clearly visible. The founders of CAVU Resources
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 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., providing
natural gas delivery and marketing thru its own pipelines, FILO
Quip Resources, LLC managing the company's properties and targeted
leases in Oklahoma, Texas, 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.
Contact: CAVU Resources, Inc. info@cavu-resources.com CAVR.PK
5147 South Harvard Ave. Suite 138 Tulsa, OK 74135 Tel: 504-722-7402
Fax: 918-782-0776
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