This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
Nov. 14, 2012 /PRNewswire/ -- CAVU Resources, Inc. ("CAVU"), which trades as OTC:CAVR.PK, announced, after lengthy negotiations, that its subsidiary CAVU Energy Services, Inc. has entered into a Letter of Intent to merge on a stock for stock basis with CAVU Global Energy, LLC. ("CAVU GLOBAL"). In a separate transaction CAVU Resources, Inc. will convey 100% of its ownership in the Chisholm and Hogshooter leases, along with approximately
$1,000,000 in debt, for a combined 40% ownership including the existing dividend shares in the surviving future public company CAVU Energy Services, Inc.
CAVU GLOBAL is currently providing funds on both the Hogshooter and Chisholm leases and has agreed to fund the entire future development of these projects and to pay off all debts associated with these leases. CAVU GLOBAL plans to engage a geological and engineering firm to complete a PV 10 study for reserves and recoverable production values of the combined company assets that includes the approximately 21,000 acres of oil and gas leases in
Milam County, Texas, 900 acres in
Jefferson Parish, Louisiana, 140 acre Chisholm lease in
Pauls Valley, Oklahoma and 820 acre Hogshooter lease in
CAVU GLOBAL is also contributing these additional assets to the merger including a recently acquired Private Corporate Bond in the amount of
$100 million to be used as an asset to secure funding for existing and future projects. CAVU GLOBAL also recently entered into an agreement to acquire a revolutionary high efficient electric motor that can be used in energy production, storage and to power vehicles. CAVU GLOBAL continues to explore government and institutional funding of the Mobile Refinery technology in its contracted market of
Texas and Utah.
"We believe this is the quickest path to fully capitalize both companies and with private institutional funds available to immediately begin the audit and the S 1 filing process needed for CAVU Energy Services, Inc. to be a publicly traded Company within six months. The
$100 million bond and proprietary technologies and oil and gas properties in some of the most lucrative areas gives the backing and future revenue to obtain funding and to utilize the capital markets for our very strong forecasted growth," commented
Chris Wilks, managing member of CAVU Global Energy, LLC.
In a proxy unanimously voted for last year, shareholders of CAVU voted to spin out the CAVU Energy Services, Inc. as a stock dividend and to seek the opportunity to go public. This transaction fulfills this mandate and will require the shareholder approval of both companies to complete the proposed merger. It is anticipated that an S-1 Registration Statement will be filed immediately with the Securities and Exchange Commission upon completion of the audit of both companies.