Cano Petroleum (fka CANOQ)

[littlejohn]

The accounting for 59,000 acres, more or less, of oil and gas reserves' asset valuation changed in the year ended 2011 versus prior years...That oil or gas underground didn't rot away like a potatoe sittin in a sack...

The company made operational improvements year to year...So maybe the lenders would rather work with a bird in hand than go thru the BK process...

10K filing has the reserve charts early in the filings to review...

http://www.sec.gov/Archives/edgar/data/1253710/000110465911056993/a11-27191_210k.htm

The accounting method writing down about 170 million of assets isn't comparable to the year to year production drop...A production drop from a company plan to streamline operations to better short term results...

And its hard to compare some other companies with better balance sheets which are losing hefty money quarterly that may be trading higher...

Its just the market ironing out kinks on a steady basis...LJ