Cano acquires Ladder, includes 51 wells

Ray Tyson

Texas’ Cano Petroleum had acquired Oklahoma’s Ladder Energy for about $2.2 million, Cano said July 6. The deal includes 51 producing oil and gas wells in the Rich Valley field comprising more than 4,500 acres.Current net production is about 110 barrels of oil equivalent per day. Reserves were estimated 682,000 barrels of equivalent, 30 percent of which is oil and 70 percent gas.

Cano said the acquisition amounted to $3.23 per proven barrel of oil equivalent and that current pretax cash flow from the Ladder property is about $80,000 per month. Cano said it expects to increase production on Ladder’s existing wells through recompletions and remedial work with an anticipated eventual production of 200 barrels of oil equivalent per day. There also is a potential for drilling up to 16 additional wells and deeper drilling, the company said.