Company Background

Company Historical Summary – for a detailed history, see latest 10K

Cano Petroleum (NYSE Amex:CFW) was founded in 2004 by Jeff Johnson, an oil and gas entrepreneur with a finance background and a keen observer of the oil and gas industry. Mr. Johnson saw the opportunity to capitalize on oil and gas market conditions by acquiring mature U.S. oil fields and applying state–of–the–art recovery techniques to increase and accelerate production. In 2004, he secured $8.75 million in startup capital to develop Cano, brought the company public and began trading on the OTC Bulletin Board.

In March, 2005, Cano secured its first round of institutional funding with a $5.1 financing from Wellington Management. In May, 2005, Cano was accepted for listing on the American Stock Exchange and in July a number of the company’s officers, directors, management and others were on hand for the ceremonial bell–ringing.

Since its inception, Cano has acquired a number of mature domestic oil fields, which the Company believes are suitable for secondary waterflood and/or enhanced oil recovery applications. Mr. Johnson has also assembled a team of oil and gas experts, including one of the country’s top enhanced oil recovery engineers, and an independent board of directors with an impressive and diverse array of oil industry experience, to advise on the execution of Cano’s business plan.