CAVU Resources, Inc. ("CAVU"), which trades as OTC:CAVR.PK, has closed on a joint venture agreement and has acquired 40% of the newly formed company called CAVU Global Energy, LLC, ("CAVU Global"). Investors have contributed a new mobile oil refinery technology and oil and gas leases in three states with reserve and technology values in excess of $200 million dollars. CAVU Global brings funding commitments and in addition also has ongoing negotiations for up to $25 million to fund the company's initial projects.
The new partnership has targeted specific opportunities in the oil and gas business focusing primarily on the development of properties in Oklahoma, Texas and Louisiana. CAVU Global also will begin the immediate placement of its revolutionary technology that allows mobile mini refineries to be moved directly on to production sites with as small as 100 barrels a day of production.
A pilot plant has already been built proving out the technology in Nevada. The initial mobile refinery plant has been successful in both tar sand oil and conventional oil conversions allowing fuel production in remote areas, opening both civilian and government opportunities for the company. This will allow for a lower cost fuel direct to the consumer for gas and diesel. By eliminating transportation and marketing costs, this allows for high grade fuel to possibly be sold at costs 20 to 30% lower than current retail gas stations.
CAVU Energy Systems, Inc. will continue as the Bonded operating company and run all the oil and gas operations for the proposed multi state operations. CAVU Energy will also handle the installation of the Mobile refineries on a worldwide basis.
"We are extremely impressed with the capability of CAVU Resources, Inc. After 9 months of discussions, we feel CAVU is the right fit helping us to develop our oil and gas leases in an expedited fashion," stated Chris Wilks, managing member of CAVU Global Energy, LLC.
"We have closed this agreement and there is no dilution or further equity issuance related to this Joint Venture. CAVU's 40% ownership now brings in excess of a $200 million asset base to accelerate its growth, and also secures the spinout and planned public offering of CAVU Energy Systems, Inc. The reserves and projected income from the current projects inside CAVU Global should allow CAVU to exceed all previous earnings projections, and future earnings per share could easily be 2 to 3 times the current stock price. The last year has been focused on eliminating debt, and creating opportunities for the company with the final goal to have cash flow and earnings. The infrastructure is now fully in place and we are finally there, after having worked on closing this deal for the last 9 months, the projected cash flow from this acquisition should eliminate the need to sell equity in the future to fund operations, debt retirement and growth. The combined team of CAVU and CAVU Global creates a financial and asset based relationship that should provide multiple future benefits to our shareholders and to meet all these goals," stated William Robinson, CEO and President of CAVU Resources, Inc.
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