TULSA, OK--(Marketwire - 12/04/09) - CAVU Resources, Inc. ("CAVU"), which trades as (Pinksheets:CAVR - News), announced today that the Company has completed a $.49 million contract from Allied Energy, Inc. to lay approximately 6 miles of pipeline, which creates numerous future drill-site locations and connects six existing Allied wells including the R. Minor #1 and #1A to the main gas line. The contract called for CAVU to build a pipeline from one of Allied's natural gas fields and connect it to another gas field where Allied Gas Transmission, a majority owned subsidiary of Allied Energy, Inc., has a compressor station, master meter, gas processing equipment and gas tap directly into a gas pipeline that feeds into a local power plant.
CAVU submitted a bid to Allied Energy in April 2009 and was asked to detail several different routes and options. After working closely with senior management from Allied Energy over the course of several months, CAVU secured the contract. The bulk of the field work involves trenching, laying of lines. Working with Allied's wholly owned subsidiary Allied Operating, LLC, the last phase that included boring roads and tying in the connection lines on the project was recently completed.
"We believe this contract speaks volumes about the quality of both companies' field teams," said William Robinson, President of CAVU Resources, Inc. "When a company of Allied's caliber selects you for one of their critical projects, I think it is a very good compliment. We look forward to helping Allied make this major leap forward in its field development plan," he continued.
"We also think that there is also the additional benefit of other companies in the area seeing the work we do and contacting us for bids on projects they may have," added Robinson. "With the recent rebound in oil prices and the optimistic outlook for gas, work is starting to pick up in the oil patch and we think we'll start seeing bids for drilling and field services."
About Allied Energy, Inc.
Allied Energy, Inc. is an independent energy development firm primarily engaged in the exploration, development, and production of oil and natural gas in the continental United States. The company relies upon its industry partners, well operators, geologists, petroleum engineers, recommendations from third parties and financial experts whose combined industry experience is essential to the success of each project. Allied Energy's strategic focus is the development of oil and natural gas reserves. As the fuel of choice to meet the growing demand for a clean-burning domestically produced fuel, the company firmly believes its natural gas exploration strategy should provide substantial growth to the company for the years to come.
The Company has more than 6,000 acres under lease, more than 70 wells under development (128 +/- well-bores under control) and continues to build its own gas line infrastructure system in Rogers County to maximize its price for gas at the wellhead. Allied and its partners are also participating in oil and gas projects located in Leon County, Texas, Morgan County, Colorado and Washington/Athens Counties, Ohio.
The Company has a wholly owned subsidiary, Allied Operating LLC, including a field office, ten (10) employees and various equipment located in Oolagah, Oklahoma. Allied Operating supervises the Company's field operations (120 +/- well-bores) located in Rogers and Pawnee Counties, Oklahoma. Earlier this year, Allied Energy, Inc. formed Allied Gas Transmission, a majority owned subsidiary, also located in Rogers County, Oklahoma. Allied Gas Transmission is currently developing a gas pipeline / transmission system in Rogers County. The Company's audited financial statements can be viewed at www.alliedenergy.com or www.pinksheets.com
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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