CAVU Resources, Inc. Acquires Hogshooter 900 Acre 60 Well Lease in Nowata, Oklahoma
March 28 2011 - 9:59AM
Marketwired
CAVU Resources, Inc. ("CAVU"), which trades as (PINKSHEETS: CAVR),
entered into an agreement with JH Field Service, LLC ("JHF"), an
Oklahoma limited liability company, to purchase a 900 acre and 60
well lease in Nowata County, OK known as the Hogshooter Lease.
The agreement calls for CAVU to purchase the 900 acre project
for $140,000 in cash and in $10,000 stock. CAVU plans to capitalize
on the project by re-enter the existing wells, utilizing new
technology, chemically treating and re-stimulate the wells. The
project originally was a water flood and produced approximately
2,000,000 barrels of oil over a 20 year period. The project was
shut in for about seven years and with limited reworking and
stimulation of the wells until JHF acquired the project in 2009.
JHF has re-entered 4 wells and cleared the locations for 20
more.
CAVU plans to re-equip the project and put back into production
approximately 40 of the identified oil and gas producing wells.
With the recent work, the field is currently producing 4 to 5
barrels of oil a day with anticipated production being in excess of
100 barrels a day. CAVU has targeted the following zones: the
Bartlesville Sand and Wayside Sand for oil, the Mulky Coal Bed, Roe
Coal Bed and Mississippi Lime for Gas.
CAVU plans to begin the second week of June to install new
equipment, storage facilities, begin well re-entry, well
stimulation, and complete environmental audits and initiate an
action plan utilizing historical data from engineers as well as
targeting new drilling sites.
The JHF property CAVU is acquiring has 5 zones targeted that
could potentially produce both gas and oil. The wells in the area
have historically ranged from 600 to 1200 feet; these shallow wells
will allow for a rapid development program. CAVU will install state
of the art storage and control systems and use the existing
transmission lines owned by Envirotek Fuel Systems, Inc. for its
gas production and delivery.
"This agreement utilizes an undervalued property and with a
minimal investment creates the potential to produce over 100
barrels of oil a day. This fits right into CAVU's plans to grow
through valued acquisitions. This acquisition will continue to
increase both our revenues and balance sheet," said William C.
Robinson, CAVU's President.
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
pilots believed they would have unobstructed flying allowing them
to see their targets quicker, identify the obstacles they needed to
overcome, giving them a greater chance of success. The founders of
CAVU Resources, Inc. 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, Montana 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 subsidiary, 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. provides natural gas
delivery and marketing through its own pipelines and FILO quip
Resources, LLC, a licensed Oil and Gas Operating Company, manages
the company's properties and leases in Oklahoma, 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.
Contact: CAVU Resources, Inc. info@cavu-resources.com CAVR.PK
5147 South Harvard Ave Suite 138 Tulsa, OK 74135 Tel: 504-722-7402
Fax: 918-782-0776
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