Cano Petroleum reported average production of 1,189 net barrels of oil equivalent per day for the fourth quarter of 2009, ending December 31, 2009. This represented a decline of 1.2% compared to the average production of 1,203 net barrels of oil equivalent per day in the same quarter of 2008.
Cano Petroleum attributed the decline in production to a curtailment of well activity at its Desdemona properties in the Barnett Shale, and a maintenance shutdown at a water flood project.
Cano Petroleum also issued an operations update on some of its oil and gas properties:
Cato Properties – Cano Petroleum drilled three new water injection wells here in the first quarter of 2010, with each well capable of producing 2500-3000 barrels of water per day. The new wells will be used to expand secondary recovery operations at its oil wells here and boost production in 2010.
Desdemona Properties – Cano Petroleum shut in its wells here in July 2009 due to low natural gas prices. The company has successfully restarted 25 wells here and expects the wells to go to sales shortly.
Cano Petroleum is an oil and gas exploration and production company that specializes in enhanced oil recovery methods, including secondary and tertiary recovery operations.