CAVU Resources, Inc. announced Tuesday that the Company is utilizing new technology and introducing computer controlled directional drilling and enhanced dewatering processes to recomplete two wells on the Chisholm lease. CAVU plans on reentering two of its existing wells, utilizing chemical stimulation and dewatering processes after drilling four horizontal legs out from each well.
The two producing wells were originally drilled in the 1950s to the Bromide formation at about 3,000 feet. The wells will be deepened to the Oil Creek formation at about 3,800 feet with the horizontal legs to be drilled in zones with oil shows out 1,000' to 1,500' in four different directions. This allows for production in multiple zones without the cost of drilling four separate wells. Based on analyses from surrounding wells is estimated that the Bromide and Oil Creek zones can produce up to 200 barrels of oil per day, (BOPD) per well.
"After reviewing our recent production and well log analyses from the Chisholm Lease, we are very confident that we should hit our targets for the seven current wells we have reentered or plan to, which would put our combined production at between 10 to 200 BOPD per well. This is part of an old Marathon Oil water flood, where over 4 million of barrels of oil were recovered. We feel this field and surrounding acreage has the great potential, using the new technology we are introducing and drilling offset wells that could provide increased reserves and long term cash flow. We currently in negotiations for targeted lease opportunities in the surrounding area. These leases have producing wells that we will introduce a similar rework program as we have on the Chisholm lease. This along with potential new development and drilling programs could quickly duplicate our projected production," said William Robinson, President of CAVU Resources, Inc.
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 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 and gas 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 and FILO quip Resources, LLC a licensed Oil and Gas Operating Company manages the company's properties and targeted leases in Oklahoma, Colorado and Montana.
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