Filed by Resaca Exploitation, Inc.
Pursuant to Rule 425 under the Securities Act of 1933
(Commission File No.: None)

 

Subject Company: Cano Petroleum, Inc.

(Commission File No.: 001-32496)

 

On September 29, 2009, Resaca Exploitation, Inc. (“Resaca”) and Cano Petroleum, Inc. (“Cano”) entered into a definitive agreement and plan of merger, as amended on February 24, 2010.

 

This communication is being made in respect of the proposed business combination involving Resaca and Cano. In connection with the proposed transaction, Resaca and Cano plan to (a) file documents with the Securities and Exchange Commission (“SEC”), including the filing by Resaca of a Registration Statement on Form S-4 containing a Joint Proxy Statement/Prospectus, (b) publish an admission document for the purpose of admitting the issued common stock of the enlarged group to trading on the AIM Market of the London Stock Exchange (“AIM”) and (c) file with AIM and the SEC other necessary documents regarding the proposed transaction. Investors and security holders of Resaca and Cano are urged to carefully read the Joint Proxy Statement/Prospectus and AIM admission document (when available) and other documents filed with AIM and the SEC by Resaca and Cano because they will contain important information about the proposed transaction. Investors and security holders may obtain free copies of these documents (when they are available) and other documents filed with the SEC by contacting Resaca Investor Relations at (713) 753-1441 or Cano Investor Relations at (817) 698-0900. Investors and security holders may obtain free copies of the documents filed with the SEC and published in connection with the admission to AIM on Resaca’s website at www.resacaexploitation.com or Cano’s website at www.canopetro.com.  Free copies of the information filed with the SEC will be available on the SEC’s website at www.sec.gov.  Resaca, Cano and their respective directors and executive officers may be deemed participants in the solicitation of proxies with respect to the proposed transaction. Information regarding the interests of these directors and executive officers in the proposed transaction will be included in the Joint Proxy Statement/Prospectus and AIM admission document described above. Additional information regarding the directors and executive officers of Resaca is also included in Resaca’s website.  Additional information regarding the directors and executive officers of Cano is also included in Cano’s proxy statement for its 2008 Annual Meeting of Stockholders, which was filed with the SEC on December 3, 2008.

 

Resaca made the following announcement on April 1, 2010.

 

Forward Looking Statements

 

These statements include “forward-looking statements” as defined by the SEC.  Such statements are those concerning the companies’ merger and strategic plans, expectations and objectives for future operations.  All statements included in this presentation that address activities, events or developments that the companies expect, believe or anticipate will or may occur in the future are forward-looking statements.  This includes completion of the proposed merger, completion of reserve estimates, production, cash flow and EBITDA estimates, future financial performance, future equity issuance and other matters.  These statements are based on certain assumptions made by the companies based on their experience and perception of historical trends, current conditions, expected future developments and other factors they believe are appropriate in the circumstances.  Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the companies.  Statements regarding future production are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas.  These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling risks and regulatory changes.  Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements.

 


 

For immediate release

1 April 2010

 

Resaca Exploitation, Inc

 

(“Resaca” or the “Company”)

 

Change in trading currency

 

The Company announces that as of 8.00 a.m. today, 1 April 2010, the trading denomination of the Resaca common stock has been changed to US$. The change in trading denomination has been made in preparation for the Company’s proposed merger with Cano Petroleum, Inc. and the planned listing of the enlarged company on NYSE AMEX.

 

For further information, please contact:

 

Resaca Exploitation, Inc

J.P. Bryan, Chairman

+1 713-753-1300

John J (“Jay”) Lendrum, III, Chief Executive Officer

+1 713-753-1400

Dennis Hammond, President and Chief Operating Officer

+1 713-753-1281

Chris Work, Chief Financial Officer

+1 713-753-1406

 

Buchanan Communications (Investor Relations)

+44 (0) 20 7466 5000

Tim Thompson

 

Catherine Breen

 

Katharine Sutton

 

 

Seymour Pierce Limited (Nomad and Joint Broker)

+44 (0) 20 7107 8000

Jonathan Wright

 

Richard Redmayne

 

 

 

RBC Capital Markets (Joint Broker)

 

Martin Eales

+44 (0) 20 7029 7881

Brett Jacobs

+44 (0) 20 7002 2091

 

About Resaca

 

Resaca is an independent oil and gas development and production company based in Houston, Texas. Resaca is focused on the acquisition and exploitation of long-life oil and gas properties, utilizing a variety of primary, secondary and tertiary recovery techniques. Resaca’s current properties are located in the Permian Basin of West Texas and Southeast New Mexico. Additional information is available at www.resacaexploitation.com.