CAVU Resources Inc (CAVR)

[dmbao]

Once again do oil development stage oil companies carry their leases on the books as a proven asset at full value of the proven reserves from the engineering reports?

The leases according to the financials have a worth of 465k. However they have three producing wells presently wells that will produce in excess of 465k in the next 12 months based on the data available from previous production reports.

So is the asset really worth 465k or does accounting regulations require that the lease is held as cost not value?

Once again as it keeps getting glossed over nobody borrows based on the value of a lease on the books.

Investment capital is raised from direct drilling participation and the huge tax benefits available. These investments are made based on the engineering reports, historical past production if available and other factors.

The value of the lease on the company books is irrelevant.

If the company's finances are so dire and they have so much debt but no assets shouldn't they have filed bankruptcy?

Why not note that the previous convertible notes issues before Mr. Mclaughlin's arrival have been retired for stock in a supposed worthless company? What that means is investors traded capital that was secured by the assets as debt is and provides preference of shareholders in bankruptcy for stock that has no such protection.

I guess this new money has more confidence here than others. Like insider buying folks putting up capital instead of posting on message boards is always more powerful to me as a statement of where thugs stand with a company.

While the company has preferred shares as mentioned for some reason the fact that the majority holder has signed away his right to use those votes and has agreed to vote his shares the same as the common shares.

It's all in the financials posted so take a look.

None of this means this will be a success. That depends on the if the wells are attractive enough to bring in the direct investment. Even with the huge tax breaks most investors still want productive wells too!

We'll see so far performance is underwhelming but not evidence supports that it's not possible and having wells producing and more wells coming soon according to the last PR paints a very different picture than balance sheet and preferred shares problems