2010-01-07-2009-11-12

To acquire company, gaining 140 acres in Garvin Co., OK.

CAVU Resources Inc., Tulsa, Okla., (Pink Sheets: CAVR) has restructured its acquisition of Filo Quip Resources LLC. In mid-August, CAVU announced it planned to acquire Filo in a cash and stock deal worth $2 million, gaining a 140-acre lease in Garvin County, Okla., with two producing wells and three wells awaiting completion. The restructuring, which includes four more wells that can be completed, calls for the assumption of specific liabilities and a combination of cash and a six-month note transaction valued at $700,000. The two wells are currently producing a combined 35 to 40 barrels of oil per day. CAVU says it plans to re-enter the other seven wells on the lease and rework them with the possibility of deepening them to the Arbuckle formation at about 4,000 feet. The company anticipates the seven wells to each average initial production between 30 and 50 barrels of oil per day.