TULSA, Okla., Aug. 18, 2011 /PRNewswire/ -- CAVU Resources,
Inc. ("CAVU"), which trades as OTC: CAVR.PK, announced today that
CAVU Resources, Inc. subsidiaries, CAVU Energy Services, LLC, CAVU
Resources One, LP, has completed the merger into FILO Quip
Resources, LLC along with the collective assets, debts and funding
commitments, which were converted into an Oklahoma corporation re-named CAVU Energy
Services, Inc. ("CVE"). CAVU Resources, Inc. will update its Proxy
and describe the company's future direction.
CAVU's recent Proxy requires a vote of the shareholders to
approve the spinout of its newly merged subsidiary CAVU Energy
Services, Inc. as a standalone public company. The management
has spent the last three years building value for its shareholders;
the proposed spinout will give CAVU shareholders ownership in two
public companies. To clear up any confusion relating to this
transaction, the shareholders of record on July 27, 2011 will vote the Proxy; in the event
that the shareholders approve the spinoff of the subsidiary as
proposed in the Proxy, then the shareholders of record as of
August 19, 2011 will receive shares
of CVE on a 1:40 basis. The shares of common stock of CVE
will be issued with a restrictive legend that will prohibit the
resale of such stock until CVE files a registration statement on
Form S-1.
Immediately following the Annual meeting, the company will start
the process of taking CVE public, with plans to register the
company on one of the listed exchanges. Minimum assets,
revenue and share prices are a requirement for listing; we
anticipate meeting these, as this relates to a true value as a
dividend to the CAVU Resources shareholder.
Since the formation of CAVU management has focused on building
value, aligning partnerships and targeting acquisitions, with this
spinout, shareholders will enjoy immediate benefits,
diversification with a greater chance of success in the future.
Management has developed a series of proprietary strategies
that will separate the risks associated with the development of
acquiring new oil and gas leases and the early losses generally
associated with such development of these leases.
It will also reduce competition within CAVU for capital and
resources. As a separate entity, CVE will have direct access to the
public and private capital markets to allow it to seek additional
financing for its operations and growth without having to compete
with CAVU with respect to capital and resources. As an independent
entity, CVE will be in a position to pursue strategies its
Directors and management believe will create long-term stockholder
value for both CVE assets and products, including organic and
acquisition growth opportunities, after its anticipated move to a
listed exchange.
It will also allow the management of each separate company to
design and implement corporate strategies and policies that are
based primarily on the business characteristics of that company.
Also at the same time, maintain a sharper focus on core
business, growth opportunities and concentrate financial resources
wholly on its own operations. CVE will seek out acquisitions in the
core business of Oil and Gas operations, waste water
transportation, disposal and reclamation opportunities, utilizing
seasoned management, with goals to become a leader in its
industry.
"With the operational side of the business now in the proposed
spinoff, CAVU can continue to focus on what it does best:
concentrating on its current leases, producing oil and gas,
acquiring additional undervalued opportunities, while utilizing its
current assets, infrastructure and project funding to grow and
continue to look for ways to increase shareholder value with plans
to continue to provide additional dividends from its successes.
With these two operating entities, we believe our
shareholders will benefit from both the unleashed value and
potential growth going forward. We look forward to meeting
with our fellow shareholders at the Annual Shareholders Meeting in
Dallas, TX on September 16th,"
stated William Robinson.
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 has acquired leases and is
currently exploring additional opportunities in oil and gas
leases.
CAVU's new operating subsidiary, CAVU Energy Services, Inc., a
licensed Oil and Gas Operating Company, manages the company's
properties in Oklahoma and plans
to operate targeted leases in Kansas, Colorado, Montana and Texas. The company will utilize its own
operating equipment and with strategic partners provide contract
drilling, fracture stimulation and directional drilling services to
oil, natural gas exploration and production companies. CAVU plans
to expand operations not only in the traditional Oil and Gas
business, but also to invest in technology, waste disposal,
Geo-Thermal and 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.
Contacts:
Specialty Situations Investor Relations
Tel: 973-507-6199
CAVU Resources, Inc.
CAVR.PK
5147 South Harvard Ave,
Suite 138
Tulsa, OK 74135
Desai V. Robinson, Director of
Public Relations
Email: info@cavu-resources.com
Website: www.cavu-resources.com
Tel: 504-722-7402
Fax: 918-782-0776
SOURCE CAVU Resources, Inc.