Cano Petroleum Begins Desdemona Field Study
Cano Petroleum is investing a portion of its recent $5.1 million in equity financing to fund improvements in its Desdemona field operations and production at the newly acquired Square One Energy property in central Texas.
As part of these efforts, Cano has engaged Forrest A. Garb and Associates, a Dallas-based geological and petroleum engineering consulting firm, to conduct an independent geological study of the Desdemona Field prior to launching pilot waterflooding.
"We have developed an aggressive strategy to leverage our resources and technology capabilities to maximize shareholder value," said Jeff Johnson, chairman and chief executive officer of Cano. "We anticipate commencing the initial pilot waterflood at the Desdemona Field within the next 30 days."
As previously reported, Cano's third party engineers, using year-end 2004 SEC price decks, have concluded that there are 1,065,000 barrels of proved oil reserves. Cano estimates the field contains more than 40 million barrels of probable oil reserves.
As disclosed in a recent 8K filing from Cano, the $5.1 million in equity financing came from two accredited institutional investors. New Orleans-based Pritchard Capital advised Cano on the transaction.
Cano acquired Square One Energy on March 31, 2005, for approximately