Bainbridge announces that Cano Petroleum acquired Myriad Resources
San Diego, CA - April 30, 2006
Bainbridge Capital represented Cano Petroleum in M&A services and implementation.
In May, 2006, Cano Petroleum, Inc. announced that it closed an acquisition of producing oil and gas properties in the Texas Panhandle Field for $24,000,000. Bainbridge Capital acted as Cano Petroleum's exclusive strategic advisor in the acquisition. The acquisition adds approximately 400 net barrels of oil equivalent (BOE) to Cano's daily production and approximately 7 million BOE to Cano's proved reserves, of which approximately 2.1 million BOE are proved producing. The properties cover approximately 9,700 acres and include 2 workover rigs and other equipment valued at approximately $1.25 million. The properties offset existing production and are intended to be incorporated into existing operations without any measurable increase in G&A costs. As a part of the financing terms, 50% of the newly acquired production will be hedged with a 'floor' at $60 per barrel and $7.60 per mcf during the three year period beginning May 2006. The acquisition, at a cost of $3.25 per BOE of proved reserves, constitutes further evidence of Cano's ability to identify and target acquisition opportunities within their core areas which provide excellent operational synergies, efficient use of existing infrastructure and personnel, and meaningful reserve and production accretion. Bainbridge Capital delivered superior value to Cano shareholders through proprietary deal flow.
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