TULSA, OK--(Marketwire - 01/28/10) - CAVU Resources, Inc. ("CAVU"), which trades as (Pinksheets:CAVR - News), announces the state of the company with projections of combined operations for 2009 of over $1,650,000 in revenues.
The past year's operations grew from $150,000 in 2008 revenue to $1,650,000 in 2009 from growth through acquisitions. CAVU's operating subsidiary Envirotek Fuel Systems, Inc. ("Envirotek") produced and transported 161,500,000 mcf of natural gas in 2009 creating $535,000 from gas sales and third party gas production. The recent acquisition of additional pipelines and the start of a 10 well development program should quickly add new revenues to Evirotek production numbers.
The FILO Quip Resources, LLC ("FILO") acquisition has brought new revenues to CAVU. Since FILO restarted its operations in September of 2009 over 3,200 barrels of oil were produced adding another $121,000 of royalty revenue to the combined companies. The recent rework plan and planned commercial disposal well should bring increased production and new revenues in 2010.
The parent company CAVU has focused on acquisitions that produce revenue from drilling, subcontracting and leasing of equipment producing $990,000 in gross revenues. Start up cost, acquisition and development cost have been necessary to build CAVU reducing the bottom line but providing a base for growth in 2010.
CAVU is focusing on projects and acquisitions that bring future value, increased revenues and the opportunity for future profits. Its new operating company CAVU Energy Services, LLC has targeted drilling in both conventional and directional drilling opportunities in the United States and abroad. CAVU's future growth will target projects that can be funded with conventional borrowing and revenue sharing to reducing the need to issue new equity. By combining conventional funding, increasing production revenue and third party contracting, CAVU can continue to grow in 2010. The company plans to issue its 2009 financials in February and final numbers could vary from the projected numbers released.
"Over $2,000,000 in debt was reduced in 2009 and the company's losses are estimated to be less than $700,000 for the first year's operation. CAVU has definitive plans to further reduce cost and focus on acquiring revenue that reduces acquisition cost and provides profitability over the next two years. Since CAVU restructured in April of this year the company has built assets, reduced debt and acquired revenue and acquired projects with potential future growth," 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 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 three 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 and 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.
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