2011-04-27-2011-04-11

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
0MM
Description

To buy leases covering 1,600 acres in MT Powder River Basin with option to buy another 1,600 acres.

Cavu Resources Inc., Tulsa, Okla., (Pink Sheets: CAVR) plans to acquire oil and gas leases covering approximately 1,600 acres in Montana with two additional options to acquire an additional 1,600 acres per option from Nitro Petroleum Inc., Oklahoma City, (OTCBB: NTRO) for $300,000 in cash and stock.

A substantial portion of this land package is in the Powder River Basin. Cavu will own 100% of the coal, coalbed-methane and oil and natural gas rights. The company will pay a 23% net royalty on production.

Once funded, the 10-well drilling program will target six production zones, with the wells drilled to depths from 4,350 to 7,700 feet. The target is to drill at least 150 feet into the Tensleep formation in each hole.