TULSA, OK--(Marketwire - 11/18/09) - CAVU Resources, Inc. (Pinksheets:CAVR - News) is pleased to announce that it's wholly owned subsidiary CAVU Resources One, LLC, formed as a drilling and lease Acquisition Company has received the first initial $50,000 investment on its $5 Million Dollar Private Placement. The Limited partnership, CAVU Resources One, LLC has targeted both new wells and leases in proven areas.
The first use of funds will be used to re-work two shut-in wells in our Hogshooter lease and pipeline project. We believe that there are at least 2 reservoirs co-mingle in these wells, even if co-mingling is not done, we anticipate that re-working the original reservoir (Rowe Coal Seam) should generate about 20 MCFD, which would put the total production from these 2 wells at a conservative 55 MCFD. These wells also have Bartlesville oil production (as evidence by oil production surrounding the lease that can be tapped and put into production. The wells should also co-produce gas and oil. Utilizing current completion techniques we believe we may be able to generate cumulative oil production of 3-5 BOPD from these 2 wells.
We have also identified 8 locations for new wells. By offsetting known producers that did 115 MCFD and 70 MCFD, we believe that there is a very high likelihood that these new wells will have IP rates of between 50 and 75 MCFD. For the assumptions, we used a conservative 45 MCFD per well, which would put the total project gas production at ~235 MCFD. There is also a very good chance that the Bartlesville will have commercial quantities of oil and we are estimating a total of ~10 BOPD from all 8 of these wells. There is also known production below the Rowe in the Mississippi, which was largely untested in this area as the "old timers" usually stopped drilling at the Bartlesville above it. As such, we are eager to test formations below the Mississippi that have never been tested in this area, some of which have a good chance of having significant oil and/or gas from these deeper reservoirs.
"We are pleased to have kicked off this drilling program," said William C. Robinson, President, CAVU Resources, Inc. "This drilling program will allow the Company to execute on our plans to explore and develop the Hogshooter lease and pipeline and structure future opportunities for the company."
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. This gave you a clear view your obstacles and allowed you to plan the best options to overcome them, 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 conventional and directional drilling services to oil and natural gas exploration and production companies. CAVU Operating Company, LLC plans to expand operations not only in the traditional Oil and Gas business, but also to invest in Geo-Thermal, Wind, Solar and security, 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
Legal Notice Regarding Forward-Looking Statements:
Legal Notice Regarding Forward-Looking Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined, and assumptions of management. Forward-looking statements are generally, but not always, identified by the words "expects," "plans," "anticipates," "has," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions or that events or conditions "will," "would," "may," "can," "could" or "should" occur. Information concerning oil or natural gas reserve estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include misinterpretation of data, inaccurate estimates of oil and natural gas reserves, the uncertainty of the requirements demanded by environmental agencies, the Company's ability to raise financing for operations, breach by parties with whom we have contracted, inability to maintain qualified employees or consultants because of compensation or other issues, competition for equipment, inability to obtain drilling permits, potential delays or obstacles in drilling operations and interpreting data, the likelihood that no commercial quantities of oil or gas are found or recoverable, and our ability to participate in the exploration of, and successful completion of development programs on all aforementioned prospects and leases. Additional information on risks for the Company can be found in filings on Edgar of other junior oil and gas exploration companies with the US Securities and Exchange Commission.
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