TULSA, Okla., May 30, 2013 /PRNewswire/ -- CAVU Resources,
Inc. (OTC Pink: CAVR) today issued a Shareholder update to provide
clarity on several recent corporate and operational
developments.
CAVU reported that progress has been made at the Company's
Chisholm Lease, despite severe weather conditions, flooding,
and tightness in the availability of needed equipment. In
spite of these delays, most of the reworking of the first three
wells has been completed and it is expected that the remaining
equipment will be delivered and installed by the end of this week.
"If the weather remains favorable, we expect to start pumping
next week. Initially we were slowed down because we made the
business decision to immediately upgrade these three wells into
state of the art producers. This will save us considerably in
the long term, and will eliminate possible revenue interruption
that can come with old equipment. We have accomplished these
upgrades on each well. Obviously, we suffered from several
occurrences of terrible weather here in Oklahoma which further delayed us. It is
important for our shareowners to recognize that once we begin
pumping, it will bring revenue 24 hours a day, 7 days a week, even
if we experience the same severe weather again. We have done
things right, it has taken time, and there is no doubt that our
original plans were indeed delayed, for the reasons I have just
outlined. However, nothing has changed to the inherent value
of our projects. Our Advisory Board continues to provide
oversight, business direction and assistance with funding sources,
and has helped place CAVU on a new path of growth and future
prosperity. Nothing is more important to all of us than
proper execution of what we say we are going to do, and
demonstrating that to our shareholders. To that end we will
provide a continuous stream of information on the results.
With the start up of the Chisholm lease we expect continuous
production that exceeds our past results. Once we flip the
switches, we will be keep shareholders updated with periodic
production reports. Additionally, in the very near future we
will complete the re-entry and preparation work on two more wells
at Chisholm, as part of our ongoing plan to re-build production and
revenues from this field," stated William
Robinson, CAVU COO.
Additionally, CAVU announced that as part of Its upgrade, the
Company will have 24/7 electronic controls and monitoring of all
sensitive equipment on each well at the Chisholm Lease, the Barbee
Lease in Nowata County and the
Hogshooter Lease in Washington
County. This state of the art system will be installed
concurrent with the remaining installation tasks at the
project. This will not only offer superior security for our
assets, but minimize the environmental impact of equipment
failure.
Management is pleased to report that Its subsidiary, CAVU
Energy Services, Inc., has secured a development and management
contract in Nowata, Oklahoma.
Despite adverse weather conditions, nine of twelve wells have
been reworked and are producing. This new relationship
will bring in fee revenue and a carried interest in the
project. Robinson stated, "We are gratified with the addition
of this new contract and we are pursuing additional opportunities
for revenue and a future stream of earnings that do not require the
use of corporate funds."
CAVU is cancelling plans for a previously proposed spinout and
listing of CAVU Energy Services, Inc. Louis Silver, CAVU's CEO, commented, "We have
determined that it is in the best of our shareholders, to whom we
have a fiduciary duty, that we stay in control of our future.
Previously, CAVU has been disappointed by relying on outside
parties to play key roles in executing the previous business plan.
This will not happen going forward, short of a guarantee.
Your new management team is highly focused on
monetizing the Company's valuable assets. Going
forward, our near term plan is produce oil and gas, generate
revenue, and maximize profits. Eliminating unnecessary
entities that compete for the focus of our management team and
reducing the attendant complexity and confusion is the best course
of action for us at this stage of our development."
Silver continued, "As our shareholders may have noted in our
recent quarterly filings, we sent a demand and foreclosure letter
to the management of Energy Revenue America, Inc. notifying them of
our intent to take possession of the assets related to the
Envirotek Fuel Systems, Inc. As of this date we have
not received a proposal on curing the default. As this is now a
legal matter, I have nothing further to say at this time, except
that the notes were non-performing and therefore unproductive for
us, and developing and managing the project ourselves is
preferable. We will update shareholders as this issue
progresses."
In a separate development, CAVU has engage a contractor to clean
up the FILO Saltwater Waste Disposal Well #2 site to meet
environmental standards and has completed an environmental and
economic impact study. The results project that a 10,000
barrel per day disposal well is feasible. Based on the
findings the Company is applying for a Kansas State Bond and
Operators License. At the present time the Company is working
to complete the offering for funding this project.
Finally, the Company has engaged a geologist and an engineering
firm to complete a PV 10 Economic Study for the Hogshooter
and Chisholm leases.
Silver stated, "To summarize, a lot has been achieved in our
efforts to monetize our assets, rationalize our corporate
structure, and to streamline and move revenue generating projects
forward in the most effective manner. Billy has dealt with
uncontrollable adversities in the operating area in an astute and
cool manner. Though we are a bit behind our schedule for Chisholm,
we have been able to move faster than expected in other
areas. Rest assured that your management team is highly
focused in two critical areas – 1) producing revenue and profits
for CAVU, and 2) seeking and negotiating the best possible
arrangements for growth capital to accelerate the development of
CAVU's assets."
About CAVU Resources, Inc.
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,
Texas, Kansas and Louisiana. CAVU's operating subsidiary, CAVU
Energy Services, Inc., licensed Oil and Gas Operating Company
manages the company's properties in Oklahoma with plans to operate targeted leases
in Texas, Kansas and Louisiana. 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:
CAVU Resources,
Inc.
William Robinson,
Chairman
Louis Silver, CEO
302 east 10th Street
Tulsa, OK 74120
Email:
info@cavu-resources.com
Website:
www.cavu-resources.com
855-766-4695
SOURCE CAVU Resources, Inc.