Fires Lead to Shutdown of Cano's Panhandle Production

Cano Petroleum announced this morning that production (approximately 800 barrels of oil equivalent per day) from its Panhandle Field located in the Texas Panhandle counties of Hutchinson, Gray, and Carson is down due to significant grass fires in the area.

Cano has mobilized all available personnel from the Panhandle Field and its other operations in Texas and Oklahoma to address the condition. Fires remain burning in the area of the Panhandle Field. The Texas Forest Service considers this event as likely one of the biggest fire days in Texas history, involving more than 1,000 square miles of prairie land.

"We have no deaths or injuries to Cano personnel, we are unaware of any adverse environmental events relating to our production, we have notified our insurers, and we are presently evaluating costs and the timing of bringing the production back on line," said Jeff Johnson, Cano's Chairman and CEO. "At this time we have no basis to believe that any producing reservoir has been damaged or compromised by the fires. This is a natural disaster for the Panhandle and we intend to do everything in our power to assist local residents and address the matter as it pertains to Cano's personnel and its production."

Cano presently believes that any equipment lost will be covered by its present insurance program. Johnson indicated that further updates would be made by the company as facts are developed.

Company: Cano Petroleum more info
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