Cano Petro of New Mexico, Inc., our wholly-owned subsidiary, acquired certain oil and gas properties in the Permian Basin in March 2007 for approximately $8.4 million, after purchase price adjustments (the "Cato Properties"). The purchase price consisted of approximately $6.6 million in cash and 404,204 shares of Cano restricted common stock, which was valued at $4.59 per share. The Cato Properties include roughly 20,000 acres across three fields in Chaves and Roosevelt Counties, New Mexico. The prime asset is the roughly 15,000 acre Cato Field, which produces from the historically prolific San Andres formation, which has been successfully waterflooded in the Permian Basin for over 30 years. The Cato Properties were not previously waterflooded. Proved reserves as of June 30, 2009 attributable to the Cato Properties are 16 MMBOE, of which 1.9 MMBOE are PDP, 0.5 MMBOE are PDNP and 13.6 MMBOE are PUD.

In May 2004, we acquired certain properties in Lincoln County, Oklahoma (the "Davenport Properties") for 5,165,000 shares of our common stock and $1.7 million cash. Proved reserves as of June 30, 2009 attributable to the Davenport Properties are 1.3 MMBOE, of which 0.7 MMBOE are PDP and 0.6 MMBOE are PDNP.

In March 2005, in connection with our acquisition of Square One Energy, Inc. for $7.6 million, consisting of $4.0 million cash and 888,888 shares of our common stock, we acquired a 100% working interest in 11,068 acres in mature oil fields in central Texas (the "Desdemona Properties"). These properties were not previously waterflooded and have mineral rights to the Barnett Shale formation. Proved reserves as of June 30, 2008 attributable to the Desdemona Properties are 4.0 MMBOE, of which 0.5 MMBOE are PDP, 1.2 MMBOE are PDNP.

In September 2004, we acquired more than 220 wells producing from the Bartlesville Sandstone in Nowata County, Oklahoma (the "Nowata Properties"), for approximately $2.6 million cash. The Nowata Properties were previously waterflooded. Proved reserves as of June 30, 2009 attributable to the Nowata Properties are 1.5 MMBOE, all of which are PDP.

In November 2005, through our acquisition of W.O. Energy of Nevada, Inc., we acquired 480 producing wells, 40 water disposal wells and 380 idle wells on approximately 20,000 acres in Carson, Gray and Hutchinson Counties, Texas (the "Panhandle Properties"). Also, included in the acquisition were 10 workover rigs and related equipment. The adjusted purchase price was approximately $56.6 million comprised of $48.4 million of cash and 1,791,320 shares of common stock with an aggregate value of approximately $8.24 million. These properties were not previously waterflooded. We are progressing with the execution of our waterflood development plan at the Cockrell Ranch Unit. Proved reserves as of June 30, 2009 attributable to the Panhandle Properties are 28.9 MMBOE, of which 3.4 MMBOE are PDP and 25.5 MMBOE are PUD.