Bainbridge announces that Cano Petroleum acquired W.O. Energy
San Diego, CA - November 30, 2005
Bainbridge Capital represented Cano Petroleum in M&A services and implementation.
On November 30, 2005, Cano Petroleum, Inc. announced that it closed the acquisition of W.O. Energy of Pampa, TX for $55,240,000. Bainbridge Capital acted as Cano Petroleum's exclusive strategic advisor in the acquisition of W.O. Energy. This purchase price translates to $1.45 per proved boe and approximately $69,000 per boepd, which is significantly below the 2005 industrial averages of $11.39 and $69,644 respectively.* After the acquisition, and based on Cano's year end Sec pricing of $56.54 oil and $6.80 gas, the PV10 valuation of Cano's proved reserves increased from $59,551,000 to $347,358,000. As a result of the acquisition, Cano's proved reserves grew from 5,523,000 boe to 40,020,000 boe. Based on approximately 26.9 million shares outstanding, the acquisition results in a PV10 value of proved reserves (net of debt) of $11.24 per share. Bainbridge Capital delivered superior value to Cano shareholders through proprietary deal flow.
*Based on all 2005 US upstream acquisitions reported by John S. Herold, Inc. (www.herold.com) consisting of more than 50 percent oil with a transaction value between $10 million and $300 million.
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