CAVU Resources, Inc. ("CAVU"), which trades as OTC:CAVR.PK, is pleased to announce that it has entered into an agreement for $500,000 in cash and stock with A. L. Feezel, LLC, ("Feezel") to purchase 470 acres and an estimated 258,000 barrels of proven oil reserves. CAVU will own 100% of the working interest and have a 75% net revenue interest.
CAVU is also acquiring 3 years of land work, research and engineering. The seller Feezel had engaged Tyco Engineering, a petroleum engineering firm in Ada, Oklahoma to conduct an engineering survey on the re-working 25 existing wells, target the optimal new drilling locations and implement a water flood well stimulation program in Pontotoc County, Oklahoma. The acquired study identified and utilized previous well logs and historical data from the Oklahoma Corporation Commission.
This acquisition allows CAVU to expand its area of operations in Southern Oklahoma with this project only 30 mile from the company's regional operation center in Pauls Valley, Oklahoma. The Allen oil field is a shallow Pennsylvanian age productive field. Originally drilled in the 1930s and 1940s. The primary producing formations are the Allen, Senora, Thurman and the Gilcrease. The formations to be utilized in this first phase of the project will be in the Senora zone and the Upper Allen. Total depth on these shallow wells is 750' to 950'. Based on geological reports, these leases are estimated to produce up to 100 barrels a day of oil and to contain up to 258,000 barrels of proven reserves.
"This project is close to our Chisholm lease and utilizes three years of research and engineering allowing us to fast track and easily supervises this project. The low risk and high potential return continues to add to our production and reserves," said William C. Robinson, CAVU's President.
