Cano Divests Rich Valley Asset
Cano Petroleum has sold its Rich Valley, Okla., asset to a private company for $7.0 million, subject to customary closing conditions and purchase price adjustments. The sale closed Monday.
The Rich Valley asset is currently producing approximately 120 boepd net and as of July 2006 there were approximately 600,000 boe reserves, all proved. Randall and Dewey, Inc. marketed the asset for the Company.
Cano plans to use the proceeds from the sale to pay down debt on its senior credit facility.
Jeff Johnson Cano's CEO said, "The sale of this non strategic asset will allow us to concentrate on our core activities and will give us some additional financial flexibility."
Cano Petroleum Inc. is an independent Texas-based energy producer with properties in the mid-continent region of the United States.