2011-05-30-2011-05-02

To purchase a 50% WI in MT CBM prospect in Powder River Basin.

CAVU Resources Inc., Tulsa, Okla., (Pink Sheets: CAVR) plans to acquire a 50% ownership in a Montana coalbed-methane prospect in the Powder River Basin from Oklahoma City-based Precision Petroleum Corp. (OTCBB: PPTO) and its partners for $150,000 in cash, a 1.6667% ORRI in the 1,600-acre lease, and 2,500 of CAVU Resources' free trading shares.

The area of interest is in the eastern half of Montana in the Powder River Basin, which is predominately under the Crow Indian Reservation and has only been explored in the outer perimeter of the reservation of which a few of those penetrations have been met with lucrative production.

The project will allow CAVU Resources to drill 10 new wells targeting the Tensleep formation with proven production of more than 200,000 barrels of oil.