Replies to post #167 on Oil Stock Report

[OilStockReport]

Cano Petroleum (CFW) has seen better times. The one analyst covering it has Cano losing 15 cents/share this year. It has missed earnings for four straight quarters. Each quarterly miss was at least 100%, with the largest miss being 300%.

Cano has acquired a series of assets over the years, for the purpose of using secondary and enhanced oil recovery methods to obtain resource. Its assets are located in New Mexico, Oklahoma and Texas.

These acquisitions have been paid for through the issuance of stock. This stock dilution has been part of the reason Cano trades for 18 cents per share, down from $1.13 two years ago. Third quarter of 2011 results saw operating quarterly revenues increase 16% year over year.

Cano saw oil sales volumes decrease, but realized a higher sales price. It lost 11 cents per share for the quarter. The problems with Cano's business seem to be too large to be optimistic about its future.

I would not normally buy Cano as it will have to continue to cut shares to maintain its business even if oil prices continue to improve. However I agree a solid management team and make things happen and bring the value back in so I am keeping this one as a super spec play for now.

[OilStockReport]

CFW management bios: worth a look while the stock is still $.13.

Jim Latimer , CEO
Chief Executive Officer and Director. Effective February 10, 2011, Mr. Latimer was appointed Chief Executive Officer. In addition to serving as a Managing Director of Blackhill Partners LLC, Mr. Latimer has headed Explore Horizons, Incorporated, a privately held exploration and production company based in Dallas, Texas since 1993. Previously, Mr. Latimer was co-head of the regional office of what is now Prudential Financial, Inc. Mr. Latimer’s prior experience includes senior executive positions with several private energy companies, consulting with the firm of McKinsey & Co. and service as an officer in the United States Army Signal Corps.

John H. Homier, Chief Financial Officer and Secretary
Mr. Homier has over 30 years experience in finance, investment evaluation, and engineering. He is currently a Managing Director of J. H. Homier and Associates. Previously, he served as President and Chief Executive Officer of a Business Development Company focused on upstream oil and gas investments. He also developed and managed oil and gas investment programs for Continental Bank, Bank of America, and Deutsche Bank. Early in his career, he worked as a petroleum engineer with Exxon U.S.A. and served in the Civil Engineer Corps of the U.S. Navy. He holds registrations in petroleum and civil engineering and is a CFA charterholder.


Jayme Wollison, Executive Director of Operations
As the Executive Director of Operations for Cano Petroleum, Mr. Wollison brings over 35 years of oil and gas experience to his position. He is responsible for the operations at Cano’s properties located in Oklahoma, Texas and New Mexico. Prior to working for Cano Petroleum, Mr. Wollison had responsibilities in various areas of the oil and gas industry, to include many years as a Production Superintendent with extensive drilling, waterflood, well service and facility experience, mainly in the Mid Continent region. Mr. Wollison has also owned and managed several independent well servicing and oil and gas companies in Oklahoma.

http://www.canopetro.com/management-bios.asp