TULSA, OK--(Marketwire -04/09/12)- CAVU Resources, Inc. ("CAVU") (Pinksheets: CAVR.PK - News) announces the initial financial results of the company, with $1,124,143 in net revenue for the year ending 2011.
CAVU was able to increase 2011 revenues to $3,438,823, an approximate 45% increase over the $2,250,715 for 2010. CAVU completed the planned development on the Chisholm lease, acquiring and putting into operation the Hogshooter lease and acquiring the assets of the waste disposal facility in Arkansas. Oil Revenue on the Chisholm lease was $304,071.96 a 33% increase over its 2010, $236,172 results. The Chisholm lease has not produced continually in 2011 with shut downs from the upgrades and equipment replacements just recently completed. The production has been primarily from the Chisholm B 2 well with the Nabors 1 and CAVU 1, running for short periods of time. The planned disposal well will allow the balance of the wells on the lease to be recompleted and put into production in 2012.
Net revenues were $1,124,143 for 2011 for the first time since the formation of CAVU compared to a loss of $133,915 in 2010. CAVU's shareholders voted to merge three subsidiaries, reorganize them and to spin off as a stock dividend. CAVU retained a 40% minority ownership position in the newly restructured CAVU Energy Services, Inc.,("CES") that included selling 6.2 acres of land, a building, and the rights and equipment in place to the 50,000 barrel a day saltwater disposal well. CAVU Resources retained full ownership of all of its leases (Hogshooter, Nowata, Garfield and Chisholm), its lease options including their oil reserves, production equipment, lines and pumps. CES will operate the leases for CAVU and plans to expand its company operations, managing wells, providing roustabout services, site preparation, the construction and operation of saltwater disposal wells in high activity production areas. CES still plans to file a registration statement and to go public on a listed exchange by the third quarter of 2012.
CAVU is focusing on acquiring energy assets, including proven leases, new technology, reworking and or drilling new wells and continuing to invest in the energy market. One deviation from this focus plan is the LOI recently entered into with SUN Packaging, Inc. and their long term solar installation contract. CAVU continues to complete the due diligence on this acquisition to confirm the valuations and proposed transactions brings a return multiple that will reword the company's shareholders.
CAVU Resources, Inc. completed the sale of Envirotek Fuel Systems, Inc. and sold additional nonperforming assets. CAVU has grown its total assets from $5,876,015 in 2010 to $6,919,350 and its net assets from $1,570,856 in 2010 to $3,785,746 in 2011. Delays in closing and receiving the balance of these payments for its subsidiary and asset sales, resulted in the company utilizing equity to pay for all of the short term investments that were committed to, anticipating these closings helping to create the aforementioned results.
We are beginning to see a consistent payback of those sales starting in the second quarter of 2012 reducing the need to continue to convert debt or raise capital in the private placement equity market. CAVU will continue to move its focus on projects that can be funded with our own cash flow as well as conventional borrowing and revenue sharing to reduce the need to issue new equity, by increasing production revenue and third party contracting; CAVU should enjoy continued growth in 2012. The final numbers could change and the company's annual report will be released with Pink Sheets after a final review from accounting and legal counsel. The current outstanding share count is 472,192,475 and our Authorized is 611,000,000, we plan to keep our filings current and expect to be fully transparent going forward.
"We are very pleased with the $1,124,143 or .006 cents a share in profits for 2011. After investing in substantial infrastructure costs, lease acquisition and contract options that have developed our assets base and should complete the elimination of our debt. We plan to bring on all of our producing leases increasing 2011's output, close on our optioned leases this year and continue to seek out new revenue producing properties, making 2012 our payback year and reward our long-term shareholders with dividends in the future. We would like to personally thank all of our shareholders for their patience over the last year, as we build CAVU Resources into the company we want it to be in 2012," stated William Robinson, CEO and President of CAVU Resources, Inc.
About CAVU Resources, Inc.
During World War II, Navy fighter pilots would look up at the sky and if it was a "CAVU" day then it meant ceiling and visibility unlimited. The pilots believed they would have unobstructed flying allowing them to see their targets quicker, identify the obstacles they needed to overcome, giving them a greater chance of success. The founders of CAVU Resources, Inc. chose the name CAVU because they believe that the company will be the embodiment of its name.
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, Kansas, Colorado, Montana and Texas. The Company has acquired leases and is currently exploring additional opportunities in oil and gas leases. CAVU's has a minority subsidiary interest in CAVU Energy Services, Inc., a bonded Oil and Gas Operating Company manages the company's properties in Oklahoma and plans to operate targeted leases in Kansas, Colorado, Montana and Texas. CAVU plans to utilize its own operating equipment and with strategic partners provide contract drilling, fracture stimulation and directional drilling services to oil, natural gas exploration and production companies. CAVU plans to expand operations not only in the traditional Oil and Gas business, but also to invest in technology, waste disposal, and water reclamation, taking advantage of the changing environment and in the world's need for new, green and innovative resources. 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.