CAVU plans to re-enter the other seven wells on the lease and rework them with the possibility of deepening them to the Arbuckle at about 4,000 feet. On the way, the McLish and Oil Creek formations would be tested. Based upon results of the two producers and other wells contiguous to the lease, CAVU anticipates each of the seven wells to have average initial production rates of between 30 to 50 BOPD.
*** Really nice Potential for CAVR and aiming for $40,000 per month in production ***
"Based upon results in this field, we are very confident that we should hit our targets for the nine wells, which would put our combined production at between 270-400 BOPD," said William C. Robinson, President of CAVU Resources, Inc. "Some companies have successfully tested the Arbuckle in this area with tremendous results, which provides a nice upside potential for us. There is also some open acreage in the area, which would allow us to grow the project and quickly add to our reserves."
At current market prices, an average of 300 BOPD would generate about $400,000 per month in net production revenues. Management plans to then leverage its reserves and cash flow to expand the project.
"We have targeted addition opportunities in the surrounding area with the potential to rework existing wells along with potential new development and drilling programs that could quickly become add to the existing project duplicating the projected production," added Robinson.
