TULSA, OK--(Marketwire - 11/30/09) - CAVU Resources, Inc. ("CAVU") (Pinksheets:CAVR - News), which trades as OTC:CAVR.PK, announced today that the Company has secured a Farm-In and Joint Venture Development Agreement with PVR Exploration, LLC to participate in a farm-in with Anadarko Petroleum Corporation to develop 640 acres in eastern Colorado.
The acreage position is located in the outer edges of the Denver-Julesburg Basin where production is drawn from Mississippian, Pennsylvanian, Permian and Cretaceous reservoirs. Production in this area from current operators has been established through a successful 3D seismic program shot over an extended area.
CAVU plans to test multiple stacked targets in the Marmaton, Morrow, Cherokee, Atoka, and Mississippian formations. Well permit applications are currently in the process of being submitted to the State of Colorado for approval.
Companies involved in the development of this 200,000+ acre area have estimated that the aggregate potential of the targets is in excess of 200,000 barrels of oil recoverable per well with estimates ranging from 100 to 150 million barrels of oil in place with significant potential to increase that estimate based on the extent of the current seismic features seen.
"With what has already been done by a few of the other companies developing this area, we feel comfortable using the figure of 1,000,000 barrels recoverable per section (640 acres)," said William Robinson, President of CAVU Resources, Inc. "Independent technical evaluations and studies of historical production in wells drilled in the 1980s have indicated significant oil in place and identified additional by-passed oil zones. We are actively looking for ways to expand our position in this area where we feel there will be major development in the years to come, so we are excited to get in early," he added.
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 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 and natural gas exploration and production companies. EnviroTek Fuel Systems, Inc., providing natural gas delivery and marketing thru its own pipelines, CAVU Operating Company, 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, 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.
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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