TULSA, OK -- (MARKET WIRE) -- 01/20/10 -- CAVU Resources, Inc. (PINKSHEETS: CAVR) announced today the completion of Phase One of the redevelopment plan on the 140 acre Pauls Valley Project in Garvin County, Oklahoma.
The recently acquired FILO Quip Resources, LLC is the owner and operator of the project. FILO will be 100% owned by CAVU under the modified acquisition agreement closed in October. With recent engineering and on site assessment, the company reworked two producing wells with down-hole reservoirs and targeted two other wells that are scheduled to be reworked and completed in new formations.
The Chisolm B-2 was previously re-entered to the Bromide formation at about 3,000 feet then deepened to the Basal Oil Creek formation at about 3,800 feet. FILO has installed a high tech submersible pump with a planned wireless SCADA system allowing the wells to be monitored and controlled online. After analyzing the recent production data and recalibrating the well, its daily production has increased 20% to 30 barrels of oil per day ("BOPD").
The Nabors-1 was re-entered to a depth of 3,100 feet, with the production zone being the Bromide. The well has been perforated and is currently being acidized, with initial production estimates at 20 to 30 BOPD.
FILO has begun the permitting process to re-enter two additional wells on the lease and plans to deepen them to about 4,000 feet with the targeted Tulip Creek and the Basal Oil Creek formations. Based upon results of the two existing producers and other wells contiguous to the lease, FILO anticipates each of the wells could have an average initial production rate of between 30 and 40 BOPD.
To handle the expected produced salt water from each of the wells, FILO reworked the current disposal well and increased the size of the tubing along with replacing the existing steel disposal lines. A new Wheatley Tri-Plex injection pump has been installed, with capabilities of moving up to 3,000 barrels of produced water a day.
FILO has also engaged a Petroleum Engineer to design and start the permitting process for a 25,000-barrel a day commercial disposal well on the 140-acre site. This would give increased capacity to the current and targeted surrounding wells and allow third party disposal at prices up to $.50 a barrel.
"This project is rapidly becoming a showcase for the low risk opportunities that requires less capital, but yet still offers excellent potential returns on CAVU's investment," said William C. Robinson, President of CAVU Resources, Inc.
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 founders of CAVU Resources 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 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., providing natural gas delivery and marketing thru its own pipelines, CAVU Operating Company, LLC managing the company's properties and targeted leases in Oklahoma, Texas, 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, Solar and security, 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.
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