Cavu Resources' Subsidiary Sees 40% Increase in Production
Cavu Resources announced that the Company's wholly owned subsidiary Envirotek Fuel System has increased its production by 40%. The gas processing facility in Nowata Oklahoma has gone thru a recent overhaul and retro fit. The 40.5 miles of a strategic gas pipeline runs thru the company's 3,140 acre Hogshooter Project in Nowata County, Oklahoma.
Envirotek has begun purchasing third party gas from producers who have had their natural gas wells shut-in due to a limited market for their gas have found Envirotek's upgraded facilities and lower operating cost more attractive then the competing transmission lines. Envirotek has already begun implementing its field development schedule to tie shut-in wells in into its lines. There are approximately a dozen wells that could immediately be tied into the company lines. Additionally, there are producers currently selling to other gas purchasers that have expressed an interest in selling to Envirotek instead at better terms. By purchasing the gas from these producers, the Company will be able to charge transportation costs and generate cash flow that goes almost entirely to the bottom line.
"Natural gas is the overlooked green energy. Gas powered plants emit over 30% less carbon than similar coal powered plants. The Pickens Plan calls for a conversion to natural gas automobiles. The use of Natural gas is on a growth curve. We believe that our upgraded facility and the access CAVU has to additional gas production and transmission lines could play a big part to increase revenue in this rediscovered green energy," said William Robinson, President of CAVU Resources, Inc.