Cano Petroleum (fka CANOQ)

[candeeman]

CFW Continued Upside

Cano Petroleum (CFW) made the news in the first quarter of last year, when George Soros purchased a million shares of the company. Although the chart tells a different story, it is easy to like Cano. This company uses EOR methods to obtain oil. Companies like Denbury (DNR) have used this to recover oil with very low costs/barrel. Cano has five projects:

Cato Field-Proved reserves: 16 MMBoe
Davenport Unit-Proved reserves: 1.3 MMBoe
Desdemona Field-Proved reserves: 4.0 MMBoe
Nowata Field-Proved reserves: 1.5 MMBoe
Panhandle Field-Proved reserves: 28.9 MMBoe

Cano had announced a merger with Resaca Exploitation Inc. (RSOX) in 2009, which has been dissolved. The merger was thought to be mutually positive, as Resaca had short-term income and Cano had long-term possibilities. Cano has significant assets, if it can stay afloat until the resource is out of the ground. I would be careful here, as this company has some financial problems going forward.

P/E Ratio: Negative
Price to Sales: 1.53
Price to Tangible Book: 0.26

Source: http://seekingalpha.com/article/261631-8-small-oil-and-natural-gas-companies-with-continued-upside?source=marketwatch