TULSA, OK--(Marketwire - 12/07/09) - CAVU Resources, Inc. (Pinksheets:CAVR - News) ("CAVU"), which trades as OTC:CAVR.PK, announced today that the Company has signed an option agreement to acquire acreage to test an initial well in northeastern Montana where companies are drilling the Bakken shale for oil. Upon successful completion of the test well, CAVU plans to acquire additional acreage in an emerging area north and west of the prolific Elm Coulee field in Richland County, MT.
CAVU has a unique position in that it is purchasing the acreage from a group that has worked with a prominent geologist who has been published for his expertise in the Bakken play in Montana. This geologist has worked the central Montana area for 21 years, gathering significant information and data that were used to identify the most attractive acreage in the area.
"We are acquiring this acreage for a number of reasons not the least of which is that this geologist believes there is between 600,000 and 750,000 barrels of recoverable oil on each well drilled on a 640 acre spacing in the middle Bakken member," said William Robinson, President of CAVU Resources, Inc. "Another key reason is that the acreage is also strategically located in the middle of acreage positions held by four other large companies, a well recently drilled by this group showed good results," he continued.
CAVU's management believes that this project offers the unique opportunity to develop a position in an area that is now being referred to as "unrisked exploration," and that is being proved by four other large oil companies.
"We believe we will enjoy the benefits of these large oil companies spending tens of millions of dollars to drill more wells, experiment with completion techniques and in general increase the value of our acreage," added Robinson.
The Bakken formation stretches from Eastern North Dakota to Central Montana in an area known as the Williston Basin. The Bakken formation is present throughout the region and is usually associated with oil and gas shows. It is a fractured formation and new technology (horizontal drilling) has allowed for great success in producing this formation.
In 2008, the US Geological Survey released a report that it had estimated mean undiscovered volumes of 3.65 billion barrels of oil, 1.85 trillion cubic feet of associated/dissolved natural gas, and 148 million barrels of natural gas liquids in the Bakken Formation of the Williston Basin Province, Montana and North Dakota.
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 that 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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