SOURCE: CAVU Resources Inc.

CAVU Resources Inc.

April 13, 2011 06:30 ET

CAVU Resources, Inc. Engages ESP Resources, Inc. to Increase Well Production on Three Stimulus Projects

TULSA, OK--(Marketwire - Apr 13, 2011) - CAVU Resources, Inc. ("CAVU"), which trades as (PINKSHEETS: CAVR), announced today the engagement of ESP Resources, Inc. (OTCBB: ESPI) ("ESP Resources"), a manufacturer, blender, distributor, and marketer of specialty chemicals and analytical services to the oil and gas industry, to begin supplying chemicals and field services for three of CAVU's major projects located in Garvin and Nowata Counties in Oklahoma.

  • Located in an area that stretches from Paul's Valley to the Texas/Oklahoma state line and covers approximately 290 square miles, the Chisholm Lease Project contains over 90 wells. CAVU currently owns 190 acres with 9 existing wells and plans to eventually work its way through the area consisting of more than 3,000 acres and 90 additional shut-in wells. CAVU's plans are to acquire, rework and systematically put back into production the targeted wells. CAVU currently has 4 producing and 5 oil wells being reworked on the Chisholm Lease Project that will be treated by ESP Resources.

  • Located in Nowata, Oklahoma, the Hogshooter Lease covers 900 acres and currently has 60 wells that CAVU plans to re-equip for production and which will require ESP Resources' chemical supplies and services.

  • Also located in Nowata, OK, is a 3,100 acre project containing 90 natural gas wells that will be reworked and treated by ESP Resources.

"Several of our senior field technicians are currently collecting field samples and evaluating all of the wells in the CAVU operating area. We will conduct a thorough evaluation of each well and will provide CAVU with a stimulus chemical program that should result in substantial increases in well productivity from the CAVU oil and gas wells," stated David Dugas, CEO of ESP Resources, Inc. "The stimulus program will include our block buster oil well cleanup system and our foamer technology to improve well productivity in the CAVU gas wells. We have utilized our chemical stimulation technology on numerous oil and gas wells with similar producing profiles as the CAVU wells and have achieved substantial increases in the oil and gas production from the stimulated wells. We anticipate the same results with the CAVU wells," Mr. Dugas stated further.

"Based on ESP Resources' historical performance of increasing productivity from natural gas wells by 20 to 50%, oil wells such as ours by 20 to 200% and their continued success with their chemical supply programs, we are anxious to begin work with their team. I am excited about the prospects of this collaboration given that the re-entry process for these wells necessitates a level of chemical expertise and service that will maximize our production and return on investment," stated William C. Robinson, CEO of CAVU.

About ESP Resources, Inc. (http://www.espchem.com/)

ESP Resources, Inc. is a publicly-traded petrochemical company (OTCBB: ESPI) headquartered in Scott, LA. Through its wholly owned subsidiary, ESP Petrochemicals, Inc., the Company manufactures, blends, distributes and markets specialty chemicals and analytical services to the oil and gas industry. ESP Resources supplies retail and wholesale specialty chemicals for a variety of oil field applications including production, drilling, waste remediation, cleaning, and waste water treatment. From its blending and distribution facilities, the Company distributes its product line throughout the oil and gas producing regions of Louisiana, Texas, Mississippi, Alabama, Arkansas and Oklahoma, both onshore and offshore. The wholesale division of the Company supplies specialty chemicals to several retailers operating in West Africa. The Company's senior management has over 100 years of combined operating experience in the petrochemical industry. More information is available on the Company's Website at www.espchem.com.

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. 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. CAVU 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. CAVU 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. It has acquired leases and is currently exploring additional opportunities in oil, gas and helium leases and has also 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 and 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.

Legal Notice Regarding Forward-Looking Statements:

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Forward-looking statements are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions or that events or conditions "will," "would," "may," "can," "could" or "should" occur. Information concerning oil or natural gas reserve estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. It is important to note that actual outcomes and actual results could differ materially from those in such forward-looking statements.

Readers are cautioned not to place undue reliance on the forward-looking statements made in this press release. 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. In evaluating these statements, you should consider the risks discussed, from time to time, in the reports we file with the U.S. Securities & Exchange Commission. For a discussion of some of the risks and important factors that could affect the Company's future results and financial condition, see the Company's Form 10-Ks and 10-Qs on file with the U.S. Securities & Exchange Commission.

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