CAVU Resources, Inc. Issued a 50,000 Barrel a Day Permit for One of the State's Largest Disposal Well in Southern Oklahoma
March 15 2011 - 11:42AM
Marketwired
CAVU Resources, Inc. ("CAVU"), which trades as (PINKSHEETS: CAVR),
announced today it recently received a permit for a 50,000 barrel a
day saltwater disposal well named the FILO # 1 SWD well located on
the CAVU's Chisholm lease in Pauls Valley, Oklahoma.
The Chisholm lease is located in a prime location, surrounded by
oil and gas fields and on the intersection of a Highway and a
County Road. FILO Quip Resources, LLC, the Operating Company and
wholly owned subsidiary of CAVU has obtained a drilling permit and
operation permit for 50,000 BBLS of disposal per day from the
Oklahoma Corporation Commission, a commercial saltwater disposal
permit for the FILO #1 SWD well, which allows the injection of salt
water, drilling and production byproducts. The operator FILO Quip
Resources, LLC has secured commitments for up to 12,000 BBLS per
day of waste drilling fluids mostly comprised of saltwater and the
company has also targeted the acquisition of a second commercial
disposal well, located in the company's area of influence assuring
CAVU both the local and national producers in the area. Having two
disposal wells located near the same property has very unique and
beneficial advantages. By potentially having two wells in
operation, the risk of down time is drastically limited when one
well goes down for maintenance which will allow CAVU to offer 24
hour, 365 day a year service. Two injection pumps will also be
installed, so that in the event of mechanical failure of one, the
other pump will be placed into service.
In addition to income generated from disposal fees, a
significant source of income is generated from "skim oil." When the
hauling company vacuums or sucks up saltwater from holding tanks on
producing properties, a small amount of oil is picked up at the
same time. The off loaded water filters through a series of
settling tanks at the SWD well facility and all oil is skimmed,
segregated and accumulated for sale. It is estimated that the
initial commitments could produce as much as 100 barrels of oil per
day. The skim oil aspect of the saltwater disposal business is like
owing a producing well which never depletes.
To further increase profitability of the facility, additional
oil field services may be offered. For example, the sale of treated
"KCL" or heavy brine water may also be considered as the same
trucks that haul produced saltwater away from producing properties
also deliver clean, treated water to drill sites and work over
operations. To take advantage of this CAVU will utilize its
trucking authority to operate anywhere in the United States and
will utilize its fleet of Semi Trucks it currently owns.
With these assets in place the expansion into future disposal
facilities in other areas will likely be pursued and can be
accomplished very efficiently in conjunction with our exploratory
drilling and re-entry projects. Wells drilled under exploratory
projects in which BOC has a significant interest may be completed
in a manner suitable to the future use and conversion for saltwater
disposal where applicable geographically and when saltwater
disposal operations are permitted by the landowner. The saltwater
disposal facilities may be owned and operated wholly by CAVU.
Alternatively, the company could target additional trucking
companies or engage in joint ventures and partnerships to guarantee
a steady volume of saltwater for disposal.
More to come.
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 and Texas. The Company
also owns two pipelines in its area of operations, which will be
used for gathering its gas and oil and the gas and oil production
of other producers. The Company has acquired leases and is
currently exploring additional opportunities in oil, gas and helium
leases. The company has acquired significant oil and gas equipment
including rigs, trucks and completion equipment.
CAVU's 100% owned subsidiaries, CAVU Energy Services, LLC
provides contract drilling, fracture stimulation and directional
drilling services to oil, natural gas exploration and production
companies. EnviroTek Fuel Systems, Inc., provides natural gas
delivery and marketing thru its own pipelines, FILO quip Resources,
LLC a licensed Oil and Gas Operating Company manages the company's
properties and leases in Oklahoma, Colorado and Montana. CAVU plans
to expand operations not only in the traditional Oil and Gas
business, but also to invest in Geo-Thermal, Wind, 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.
Contact: CAVU Resources, Inc. info@cavu-resources.com CAVR.PK
5147 South Harvard Ave, Suite 138 Tulsa, OK 74135 Tel: 504-722-7402
Fax: 918-782-0776
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