Cavu Resources, Inc. Acquires 1600 Acre Big Horn Lease in Montana
April 11 2011 - 7:42AM
Marketwired
CAVU Resources, Inc. ("CAVU"), which trades as (PINKSHEETS: CAVR),
is pleased to announce that it has entered into an agreement for
$300,000 in cash and stock with Nitro Petroleum, Inc., a Nevada
Corporation, (NITRO) to acquire oil and gas leases covering
approximately 1,600 acres in Montana with two additional options to
acquire an additional 1,600 acres per option. A substantial portion
of this land package is located in the prolific Powder River Basin.
CAVU will own 100% of the coal, coal bed methane, and oil and
natural gas rights. The company will pay a 23% net royalty on
production.
CAVU is also acquiring 3 years of land work, research and
engineering. The seller NITRO had engaged Ramsey Engineering, a
petroleum engineering firm in Oklahoma City, to conduct an
engineering survey on the proposed 10 well drilling program in the
Powder River Basin of Montana. The acquired study identified and
utilized seismic surveys to target the optimal drilling locations.
The acquired studies and engineering will enable CAVU to proceed
with minimum financial risk and to focus on the pre-eminent
drilling targets.
This acquisition allows CAVU to be one of the first companies to
have access to these highly prospective leases. Geological reports
indicate that there are four shallow methane and gas pay zones in
each well. Based on geological reports, these leases are estimated
to contain up to 24.6 billion cubic feet of gas reserves. Each well
being drilled has three to five potential targets that could
produce substantial oil and gas production, but the major upside
potential for each of these wells is contained in the deeper target
of the Pennsylvanian Tensleep Formation.
Once funded, the 10 well drilling program will target 6
production zones, with the wells drilled to depths from 4350 to
7700 feet. The target is to drill at least 150 feet into the
Tensleep Formation in each hole. The Historical production in the
surrounding area has been very prolific; area wells know as the
Mann 1-18 and the Mann 8-18 have produced over 471,711 barrels of
oil over the past ten years and are still in production today.
"This agreement utilizes three years of research and engineering
allowing us to fast track this project. With the Big Horn lease in
close proximity to producing wells and with similar geological
targets, we believe CAVU is in position to add substantially to it
production and reserves," said William C. Robinson, CAVU's
President.
About Nitro Petroleum, Inc. Nitro
Petroleum, Incorporated is an independent, energy company engaged
in the acquisition, exploitation and development of oil and natural
gas properties in the United States. Nitro's objective is to seek
out and develop opportunities in the oil and natural gas sectors
that represent a low risk opportunity. As well, Nitro aims to
define larger projects that can be developed with Joint Venture
partners. More information about the company is available at
www.nitropetroleuminc.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
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 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., provides natural gas
delivery and marketing thru 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: Nitro Petroleum, Inc. Investor Relations Toll
Free: 1-888-805-NTRO Email: info@nitropetroleuminc.com Website:
www.nitropetroleuminc.com CAVU Resources, Inc. CAVR.PK 5147
South Harvard Ave, Suite 138 Tulsa, OK 74135 Email:
info@cavu-resources.com Website: www.cavu-resources.com Tel:
504-722-7402 Fax: 918-782-0776
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