Replies to post #69639 on CWRUObserver.com -Financial News and Headlines -

[Aragorn1]

CAVU.PK CAVU Resources, Inc. to Acquire $780,000,000 of Recoverable Reserves


CAVU Resources, Inc. ("CAVU"), which trades as (PINKSHEETS: CAVR), announced today that it has entered into a Letter of Intent to acquire a 7 mile section of a gas gathering pipeline along with a 2,240 acre lease and existing well that has at current prices $780,000,000 of proven recoverable natural gas reserves. The lease, well and pipeline are located in South Texas.

A contour map of the lease was prepared; with the Landsat imagery obtained showing the correlation for the structure is quite good. Landsat did indicate a much larger aerial coverage of the structure than seismic. The structure is quite prominent from the size of the structure; it can be assume to be Ordovician or Cambrian in age. One smaller seismic contour map may be indicating later reefing at shallower depths. The Landsat does indicate that the acreage currently be held under lease is quality property with good hydrocarbon potential.

The current well has seven indentified pay zones starting at 5,000 feet to a depth of 23,000 feet. From the number of differing productive zones in the well and offset scout ticket data from a major oil and gas producer (located immediately south of the well) it can be inferred that a new discovery gas field is in development with potential of 15 to 20 deep wells.

A mix of shallow wells is initially planned followed by the deeper, more expensive wells financed from production profits. Well spacing on this lease ranges from 40 acres per well on the shallow zones to 320 acres per well on all of the other productive zones.

The company plans to check production and quality of gas on the well over the next 30 days including a 4 point well test and to pressure test the acquired pipeline. With successful results on the well, the company will commence production from the existing productive zone. The current head pressure is at 4800 PSI and the Geologist/ Petroleum Engineer estimated an initial production in the area of 2,000,000 to 5,000,000 MCF per day.

"With the closing of this acquisition and a successful test, CAVU will move to a new level as an Independent Natural Resource Company. This project is a game changer for CAVU," said William Robinson, President of CAVU Resources, Inc.

The company has purposely withheld the well name, specific lease location, and producible zones and exacts depths until certain benchmarks and tests are completed.