Cano Petroleum Announces New Senior Vice President.

FORT WORTH, Texas -- Cano Petroleum, Inc. (AMEX:CFW), an oil and gas producer specializing in secondary and enhanced oil recovery, announced today that it has named Patrick M. McKinney to the position of Senior Vice President - Engineering and Operations. Mr. McKinney brings to the position more than 24 years of progressive oil and gas industry experience in engineering, operations, finance and strategic planning. Mr. McKinney joined Cano in June of 2006 as Vice President - Engineering and Business Development after serving as the Worldwide Strategic Portfolio Manager for Pioneer Natural Resources, located in Irving, Texas. Mr. McKinney spent more than 17 years with Union Pacific Corp. where he worked closely with Sam Smith (the Company's present Senior Vice President and Chief Financial Officer), both in its corporate headquarters and its oil & gas, transportation and logistics subsidiaries. He gained extensive experience in secondary and enhanced oil recovery at UPR's Wilmington Oilfield in California. Mr. McKinney received his B.S. in Petroleum Engineering from University of Wyoming and his MBA from Pepperdine University.

Jeff Johnson, Cano's Chairman and CEO, stated, "Given Pat's extensive experience, we are very fortunate to have him at this senior level in our organization and at the helm of our recently announced capital expenditure program."

ABOUT CANO PETROLEUM:

Cano Petroleum Inc. is an independent Texas-based energy producer with properties in the mid-continent region of the United States. Led by an experienced management team, Cano's primary focus is on increasing domestic production from proven onshore fields using secondary and enhanced recovery methods. Cano trades on the American Stock Exchange under the ticker symbol CFW. Additional information is available at www.canopetro.com.

INFORMATION REGARDING FORWARD-LOOKING STATEMENTS: Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, volatility of natural resource prices, product demand, market competition, and risks inherent in our operations. These and other risks are described in our Annual Report on Form 10-KSB and other filings with the Securities and Exchange Commission.