Positive news on Cavu Resources Inc (PINK:CAVR) gave another boost to the never-ending promotional hype about its stock, which commenced earlier this month.Although the huge investor awareness program has so far only consisted of free trade alerts, it has had a fairly positive impact on the market performance of CAVR stock. Last Friday’s session was no exception either. CAVR shares closed trade at $0.044, marking both a nine-month high and a 5% improvement over the day before. The turnover hit 408 thousand. While it is 5.5 times higher than the average volume, it is nowhere near the 1.5 million shares of CAVR stock that changed hands on Thursday.
As mentioned in another article, CAVR has been quite prolific regarding its PR policy. A number of corporate updates have been popping up every once in a while, keeping the promotional engine running. According to the latest announcement, which took place on Mar. 24, CAVR has initiated a new drilling program worth $5 million. As stipulated in the contract, CAVR has now acquired the right to rework no more than 100 wells located at an Oklahoma-based property lease. [BANNER]
Cavu Resources Inc. pretends to embark on a large-scale development program on the wells mentioned above. Moreover, it claims to dispose of all the necessary equipment for the project. Yet, investors are still clueless about the financial side of this venture. Indeed, the company has not filed any reports for ages. The last Q3 covers the period ended Sep. 30, 2009.
In a nutshell, CAVR does have the potential to make a breakthrough in the crude petroleum and natural gas industry, as long as it really has its own equipment and resources to maintain its operations. To raise additional capital, however, management will have to find a way to earn investors’ trust. Going transparent financial-wise will definitely be a step into the right direction.
