CAVU Resources, Inc. Initiates Production on the Hogshooter 67 Well Lease in Washington County, Oklahoma
TULSA, Okla., March 15, 2012 /PRNewswire/ -- CAVU Resources, Inc. ("CAVU"), which trades on the OTC:CAVR.PK, has initiated a workover program on the Hogshooter lease in Washington County, Oklahoma. CAVU had originally planned to introduce a new technology on the project located in Washington County, near the town of Nowata, Oklahoma. Seasoned operators recommended utilizing the original production plan and infrastructure developed by the previous investors. To correct previously reported numbers at the location that is located in Washington County not Nowata, but near the town of Nowata, Oklahoma, CAVU physically inspected all of the assets. The recent inspection of the wells verified the actual count on the producing wells to be 50 with 15 water injections wells, 1 horizontal high rate water injection well and 1 water supply well.
The company is not going to share the project as previously reported. The Hogshooter was designed to be a water injection or water flood project utilizing the sizable reserves and the historically dependable long term production from the Bartlesville Sand and Wayside Sand pay zones. The regional project had historically produced over 2,000,000 barrels of oil. CAVU has 20 partially equipped production wells and has reworked 3 wells over the last 60 days with average production at 1.5 barrels of oil and 30 barrels of saltwater. The saltwater is being re-injected in the formation to continue the designed enhancements that injection of water creates.
"CAVU decided to utilize conventional and proven recovery methods on this undervalued property, utilizing the originally engineered and partially equipped infrastructure. Initial results are proving that our original minimum production potential to be over 100 barrels of oil a day. We plan to continue to equip the well out of company cash flows. The targeted completion of the rework project is estimated to be approximately 6 to 9 months. Recently CAVU has seen a historical spike in volume and price supporting the belief that projects like the Hogshooter and the recent LOI with Sun Packing should continue to grow the company's income and value of CAVU's stock," 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 has acquired leases and is currently exploring additional opportunities in oil and gas leases.
CAVU's operating subsidiary, CAVU Energy Services, Inc., 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, solar 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.
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