TULSA, OK -- (Marketwired) -- 07/26/13 -- CAVU Resources, Inc. (OTC Pink: CAVR) today announced it is producing oil again on the Chisholm lease.
Two wells have been in operation 24/7 for nearly a week and have been producing oil at a rate of approximately 25 barrels per day. This production rate has been slowly increasing every day. Though this rate is below our projections, we have purposely been running the pumps at 1/2 the maximum operating level to test the system and prevent any damage to the wells and equipment. Once we get the third well into operation we plan to gradually increase the pump speeds to achieve the optimum operating flow rate. We are very happy with how the project is performing now at this consistent flow rate. Billy Robinson, CAVU President, stated, "This level of production, if maintained for the next 12 months, after royalties and taxes, should produce approximately $1/2 million in annual cash flow for the 88% owned CAVU Resources Two, LP. We have dealt with weather, delayed equipment and contractor delivery and operations to complete the replacement of old equipment that was idle for nearly a year. We believe we did things right and the project is proving to be more effective with lower maintenance and operating costs than it previously operated at."
CAVU CEO Louis Silver offered, "We have been addressing the opportunities and issues that face CAVU in a diligent manner, and we will have more to say in subsequent releases. We are building production and cash flow. As we continue to seek new revenue producing opportunities, our next area of focus will be some targeted production acquisitions and the FILO SWDW project development in Kansas."
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.